“Royal Bank of Canada Chief Executive Officer Dave McKay said he sees blockchain maturation, the spread of artificial intelligence and the so-called internet of things as three big technological developments that will change banking in coming years.
Blockchain and digital coins aren’t fully mature yet, but they will continue to evolve, McKay said during a virtual discussion as part of the Sibos financial-services conference. AI, which Royal Bank already has embedded in a trading platform, will expand to more and more decisions, and more data will be affected by machine learning, he said.”
“The successful deployment of ML/AI tools can be a true differentiator for financial services companies. This technology allows our industry to both improve and automate back-office processes and engineer more targeted engagement with our customers. In short, it can lower operating costs, enhance cross sell and increase customer acquisition. However, a successful ML/AI strategy requires a thoughtful strategy and clean data. AI is the next phase of technology competition in the financial services industry, and it is paramount that traditional financial services companies, fintechs and the technology companies that support them are focused on developing an AI strategy to compete in the evolving landscape.”
“We’ll experience more technological progress in the coming decade than we did in the preceding 100 years put together, says McKinsey.
Applied Artificial Intelligence (AI)
We are still only in the early days of the development of AI. As the technology becomes more sophisticated, it will be applied to further develop tech-based tools, such as training machines to recognize patterns, then act upon what it has detected.
By 2024, McKinsey estimates AI-generated speech will be behind more than 50% of people’s interactions with computers. Companies are still searching for ways to use AI effectively though, the consultancy says: ‘While any company can get good value from AI if it’s applied effectively and in a repeatable way, less than one-quarter of respondents report significant bottom-line impact.’”