AI technology enables computer systems to ‘learn’ without being programmed. This innovative concept is pushing boundaries and leading the way across all industries and sectors from healthcare to financial services – in most reasonably advanced nations.
According to a report Accenture consulting, AI intelligence has many benefits to bring to the financial sector.
With banking being one of the most data-rich industries, this new form of computing is bringing in a new era in terms of the benefits it can bring to banking and related industries.
The usual group of tech giants, such as Amazon, Google, and Facebook usually tend to be the most future forward-thinking when it comes to new and cutting edge technology. However, banking and financial institutes are now busy showing interest and conducting reports and important research into artificial intelligence.
According to Deltec Bank, “Banks are beginning to realize how important this new form of technology is, and how it can help them move forward to the future, ushering in a whole new era in terms of their development and evolution.”
Let’s take a brief look at some of the ways banks are using machine learning techniques and how it can help them with a number of important processes.
What benefits can AI bring to financial services
Using this cutting-edge machine learning concept, offers banks and other members of the financial industry, a much more integrated and rich application process. Let’s take a look below at how it can help these organizations move into the future.
- Trading using algorithms
- Loan/insurance underwriting
- Risk modeling
- Portfolio management
- Fraud, misconduct detection, and more robust cyber security
- Improve customer experience
- Faster and more efficient systems
How are banks experimenting with AI technology
In order to better service their customers, increase revenue, and also vastly improve overall performance, the 7 largest US banks are prioritizing advancement in technology.
Now we’ve seen in general terms how financial organizations are beginning to integrate Artificial Intelligence into their everyday activities, Let’s take a look below at how 2 of the leading banks in the US are leading the way with this new technology.
Wells Fargo and AI
Wells Fargo, have been investing heavily in chatbot technology to enhance customer service. The chatbot was made available to 5,000 customers and piloted on Facebook Messenger.
This predictive style of banking enabled customers to:
- After customers have purchased a plane ticket, customers are prompted to set up a travel plan
- If customers have more money than usual in their checking account, customers are reminded to transfer money into their savings account.
- When customers have higher-than-average recurring billing payments, customers are alerted
Citibank and AI
The Citigroup has recently been under threat by well-publicized cyberattacks and also an ongoing threat of fraud.
Citibank has made the public aware of their interest in artificial intelligence more than any other bank. They have recently included more than half a dozen AI related press releases. They have paid particular attention to e-commerce and cyber-security.
Citibank is also leading the way with their fraud and anti-money laundering strategies and integration of software. After announcing a partnership with the tech start-up company Feedzai in 2016, they’re looking at deploying these new systems as live early in 2019.
They’re beginning to use the benefits of AI to better monitor larger corporate customers payments.
Let’s end on an inspirational quote from prolific author Arthur C Clarke to see how artificial intelligence is set to bring about significant changes in the way we bank in the future.
‘Any sufficiently advanced technology is equivalent to magic.’
Arthur C. Clarke (Author)
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.