If you’re involved in financial services you’re likely familiar with the name Jamie Dimon. If not, he’s the Chairman and CEO of JP Morgan Chase, and arguably one of the most influential leaders worldwide.
A quick Google search will return references to “America’s Most Important Banker,” “Savior of Wall Street.” “Last CEO Standing.”
With that context, I just stumbled upon Mr. Dimon’s shareholder letter dated April 4, 2019 and I wanted to share. He is clearly all-in on the benefits of artificial intelligence and machine learning.
Here’s the message verbatim. I’ve also included a link to the full letter. The AI commentary is on page 34.
“The power of artificial intelligence and machine learning is real.
These technologies already are helping us reduce risk and fraud, upgrade customer service, improve underwriting and enhance marketing across the firm. And this is just the beginning. As our management teams get better at understanding the power of AI and machine learning, these tools are rapidly being deployed across virtually everything we do. We can also use artificial intelligence to try to achieve certain desired outcomes, such as making mortgages even more available to minorities. A few examples will suffice:
• In the Corporate & Investment Bank, DeepX leverages machine learning to assist our equities algorithms globally to execute transactions across 1,300 stocks a day, and this total is rising as we roll out DeepX to new countries.
• Across our company, we will be deploying virtual assistants (robots driven by artifi- cial intelligence) to handle tasks such as maintaining internal help desks, tracking down errors and routing inquiries.
• In Consumer Marketing, we are better able to customize insights and offerings for individual customers, based on, for example, their ability to save or invest, their travel preferences or the availability of discounts on brands they like.
• Technological solutions help us do better underwriting, expediting the mortgage or automobile loan approval process, letting the customer accept the loan in a couple of clicks and then start shopping for a home or car.
• In our Consumer Operations, we are using AI and machine learning techniques for ATM cash management to optimize cash in devices, reduce the cost of reloads and schedule ATM maintenance.
• And our initial results from machine learning fraud applications are expected to drive approximately $150 million of annual benefits and countless efficiencies. For example, machine learning is helping to deliver a better customer experience while also prioritizing safety at the point of sale, where fraud losses have been reduced significantly, with automated decisions on transactions made in milliseconds.
We are now able to approve 1 million additional good customers (who would have been declined for potential fraud) and also decline approximately 1 million additional fraudsters (who would have been approved). Machine learning will also curtail check fraud losses by analyzing signatures, payee names and check features in real time.
• Over time, AI will also dramatically improve Anti-Money Laundering/Bank Secrecy Act protocols and processes as well as other complex compliance requirements.”
Wow!! That speaks volumes about where we’re headed with the potential for artificial intelligence and machine learning in banking and financial services.