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Plum, which claims to be the first AI-powered Facebook chatbot, raised $500,000 in a seed round that closed on Friday, according to a press release seen by BI Intelligence.
Plum wants to help millennials save money by automating the process for them. It was founded by Victor Troukoudes and Alex Michael, formerly of fintechs TransferWise and Tictail, respectively. Plum currently runs in private beta only.
Plum works by having its AI connect to and analyze a user's current account. It uses a "smart algorithm" to note spending patterns, bills, and income, in order to construct a unique profile for each user. Based on these data, it then calculates a "safe" amount of money that the user can afford to save every few days, which is automatically transferred into the user's Plum savings account. Users can intervene by communicating with the chatbot via Facebook Messenger — for example, by telling it to save a larger-than-usual amount as a one-off, or by asking to withdraw money for an event like a holiday.
A couple of questions remain as to how Plum will operate:
It has not specified how it connects to a user's current account. If it is using a technique known as "screen-scraping," in which it asks for access to a user's bank account, copies their transactions and converts this into data, it is likely operating in a legal grey area. That's because many customers' contracts with their banks forbid them from handing online banking details over to anyone. Plum might also be using APIs, in which case the bank is willingly handing over the customer's data in a usable format, with the customer's permission. Plum could struggle here because banks may not hand over data in the same format, requiring a lot of effort on the fintech's part to clean it. However, Britain's imminent regulation mandating that banks share their customer data with third parties in a standard format, with customers' consent, will resolve this difficulty.
Moreover, Plum has not clarified how it plans to make money. While it says users' savings will accrue interest and that it is in discussions with its banking partners, it has not gone into details. This suggests that it may be planning to sell itself to an incumbent bank once it has proved its model works. Alternatively, it could also be planning to eventually operate as a third-party supplier to incumbents.
Advancements in artificial intelligence, coupled with the proliferation of messaging apps, are fueling the development of chatbots — software programs that use messaging as the interface through which to carry out any number of tasks, from scheduling a meeting, to reporting weather, to helping users buy a pair of shoes.
Foreseeing immense potential, businesses are starting to invest heavily in the burgeoning bot economy. A number of brands and publishers have already deployed bots on messaging and collaboration channels, including HP, 1-800-Flowers, and CNN. While the bot revolution is still in the early phase, many believe 2016 will be the year these conversational interactions take off.
Laurie Beaver, research associate for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on chatbots that explores the growing and disruptive bot landscape by investigating what bots are, how businesses are leveraging them, and where they will have the biggest impact.
The report outlines the burgeoning bot ecosystem by segment, looks at companies that offer bot-enabling technology, distribution channels, and some of the key third-party bots already on offer. The report also forecasts the potential annual savings that businesses could realize if chatbots replace some of their customer service and sales reps. Finally, it compares the potential of chatbot monetization on a platform like Facebook Messenger against the iOS App Store and Google Play store.
Here are some of the key takeaways:
AI has reached a stage in which chatbots can have increasingly engaging and human conversations, allowing businesses to leverage the inexpensive and wide-reaching technology to engage with more consumers.
Chatbots are particularly well suited for mobile — perhaps more so than apps. Messaging is at the heart of the mobile experience, as the rapid adoption of chat apps demonstrates.
The chatbot ecosystem is already robust, encompassing many different third-party chat bots, native bots, distribution channels, and enabling technology companies.
Chatbots could be lucrative for messaging apps and the developers who build bots for these platforms, similar to how app stores have developed into moneymaking ecosystems.
In full, the report:
Breaks down the pros and cons of chatbots.
Explains the different ways businesses can access, utilize, and distribute content via chatbots.
Forecasts the potential impact chatbots could have for businesses.
Looks at the potential barriers that could limit the growth, adoption, and use of chatbots.
To get your copy of this invaluable guide, choose one of these options:
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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of chatbots.