AI in Banking: Beyond the Bots

– “80% of financial institutions are “highly aware” of the benefits of AI and machine learning.

– 75% of banks with more than $100 billion in assets are currently implementing AI.

– 46% of FIs with less than $100 billion in assets are currently implementing AI.

– By 2023, FIs are projected to save $447 billion by using AI, the majority of that being derived from customer-facing apps like chatbots, and back-office uses like anti-fraud and risk applications.

81% of IT executives in banking agree that ‘unlocking value from AI will distinguish winners from losers.’

– 85% have a clear strategy for adopting AI in the development of new products and services

– 78% say that using AI will help them achieve their business goals and priorities, with 46% of those saying ‘to a great extent.’”

Fintech rise forces retail banks to pivot, says report

  • “Customers are pivoting to competitors that offer more personalised, bespoke experiences, leaving retail banks lagging behind. That’s according to the World Retail Banking Report 2022 (WRBR) published by Capgemini and Efma.
  • The survey showed that 75% of customers are attracted to the cost-effective, seamless services offered by fintechs and traditional banks simply cannot keep up.
  • In the report’s ‘Voice of the Customer’ survey, three quarters of respondents said they are attracted to agile fintech competitors as they offer fast, easy-to-use products and superior customer experiences. Conversely, around half said their current banking relationships were neither rewarding nor emotionally connected, and 52% said banking was not ‘fun’.
  • According to the survey, more than 70% of banking executives said traditional banks lack data and analytics capabilities.
  • ‘While this has evolved within many of these incumbents’ digital channels, customers still expect branches to be experience centres, filled with self-service options and financial advice. By strengthening their ability to collect and analyse data, providers can identify what customers want, which ultimately is consistent omnichannel banking experiences.’”

How business intelligence aids digital transformation process

  • “BI tools quickly and efficiently collect pre-determined sets of data from enterprise systems such as Customer Relationship Management (CRMs), financial management platforms and Human Resource Management System (HRMs). In addition, Robotic Process Automation (RPA) and AI-powered bots can scrape website, spreadsheets and other documents for additional data, both structured and unstructured.
  • For decades, BI could only tell users ‘what is happening’ or ‘what happened’, leaving the decision-making part to humans. However, with the emergence of artificial intelligence (AI), that is rapidly changing. Now, using data mining, machine learning, prescriptive analytics and other innovative technologies, organisations can use BI to uncover and share new, groundbreaking data-driven insights.
  • Predictive analytics is the use of data, statistical algorithms and machine learning (or AI) techniques to identify the likelihood of future outcomes based on historical data. The use of predictive analytics is a key milestone on your analytics journey — a point of confluence where classical statistical analysis meets the new world of AI.”

5 applications of Artificial Intelligence that are disrupting the banking sector

“Artificial Intelligence enables banks to manage record-level high-speed data to receive valuable insights. Moreover, features such as digital payments, AI bots, and biometric fraud detection systems further lead to high-quality services for a broader customer base. Artificial Intelligence comprises a broad set of technologies, including, but are not limited to, Machine Learning, Natural Language Processing, Expert Systems, Vision, Speech, Planning, Robotics, etc.

  1. Robo Advice
  2. Customer service/engagement (Chatbot)
  3. Credit Scoring / Direct Lending
  4. General Purpose / Predictive Analytics
  5. Cybersecurity”

Data50: The World’s Top Data Startups

“To help cut through the noise after a record-breaking 2021 in which data companies received tens of billions in venture capital investment — and an already strong 2022 — we’ve compiled the inaugural class of the Data50. These are the bellwether companies across the most exciting categories in data. In aggregate, these 50 companies are valued at more than $100B and have raised approximately $14.5B in total capital, with 20 having reached unicorn status by 2021.”