The future of AI in banking has unlimited possibilities. AI technology is disrupting all sectors in society; cutting costs and improving transparency and trust. Arguably, in the near future, banking will benefit the most out of incorporating AI systems.
Almost every sector discusses AI and it plays a role in all parts of our lives; undetectable yet extremely powerful. From virtual assistants like Alexa to banking robots such as Pepper, AI will continue to have a significant daily impact.
AI development is quite possibly the fastest paradigm shift in technological history. Furthermore, adoption of the technology is rapidly increasing.
At the State of AI 2019, hosted by MMC Ventures in partnership with Barclays, leaders and experts from all different sectors gave their two pence about how AI can transform lives.
Wide spread awareness and early proofs of concepts are maturing, while globally, adoption of AI has tripled over the last year. In the State of AI 2016 report it noted that now one in seven large companies have adopted AI. Furthermore the report expects that in two years two thirds of large companies will have incorporated AI and will have live initiatives.
Great expectations are fuelling the future of AI in banking. Now banks have access to a wealth of customer data, including detailed demographics, payment behaviour, habits and records of online and offline transactions.
By fully embracing AI and also integrating it onto their platforms, banks will become better positioned to personalise products, services and interactions based on the behavior of individual clients.
In may ways, this is already happening. With the introduction of Open Banking in 2018, banks were pushed to open up their users information with permission to a host of third party providers budding to offer a variety of services and financial products.
State of AI: Divergence
David Kelnar, report author, partner and head of research of MMC Ventures, wrote:
“For the first time, traditionally human capabilities can be undertaken in software efficiently, inexpensively and at scale.“
“Winners and losers are emerging in the race for adoption, the war for talent and the competition for value creation.”
MMC Ventures also published ‘The AI Playbook’ which details how exactly businesses can take advantage of AI.
The report highlights that businesses of all kinds must firstly understand the data they have. Ensuring that the human knowledge regarding how the data was gathered is captured is vital.
Data is arguably the most important asset a bank has in understanding their customer base. With AI, banks can continue to explore for innovation and develop new solutions quickly, accurately and securely – but it’s a race.
Keeping customers safe from online threats
As more customers use digital channels to manage their finances, banks have a host of new challenges to overcome.
One major challenge is protecting their customers’ data against fraud and online scams. While security within banks is high, fraudsters are constantly using sophisticated methods to breach firewalls.
The ability of AI to sift through massive amounts of data and identify patterns that might have been missed is one of its greatest strengths. Banks and other financial organisations are deploying AI and machine learning solutions to fight fraud more effectively.
Implementing robust data management and AI initiatives will enable banks to stay ahead of the hackers. Being able to elude human observers is one of its greatest strengths.
The future of AI in banking relies heavily on the bank or business taking the time to develop solutions or partner with those who have solid procedures, then integrating them securely onto their platforms.