“The UK government will, to the tune of £60m, bankroll two major research projects led by the country’s national institute for AI, the Alan Turing Institute: one to automate air traffic control, and the other for banking services.
The second funded scheme, dubbed the Prosperity Partnership Project, is a collaboration between the institute and HSBC. An interdisciplinary team made up of computer scientists and economists will investigate how AI can revamp financial services and tools, and look for the best ways to apply the technology fairly and securely.”
“In a report published last year exploring what the next decade holds for incumbents in the age of digital banking, HSBC suggested that this is a “common myth”, highlighting the growing landscape for collaboration between banks and fintechs and suggesting that ‘we are already in an era of innovative cross business collaboration which many would have not imagined a few years ago.’”
“’We have 608 million transactions every month. Hence, with AI and machine learning we are able to identify a good transaction done by an innocent person versus transaction conducted by criminals,’
Prior to the advent of ML, decisions were made on a rule-based system, where the same criteria are applied across a broad customer segment, subjecting them to a one-size-fits-all solution.”
“’Traditional banks have to lower the cost of running the bank,’ Bottomley, who joined HSBC in 2013 from Google, said on Monday. “We have to get a lot better at automation, productivity improvement.”
“There are unbelievable opportunities for artificial intelligence and machine learning in banks,” Josh Bottomley said in a speech on Monday.”
Day 1 of the Digital Banking Conference hosted by the ABA is complete, and the biggest draw of the day was…Pepper the robot from SoftBank
Related story:
Rise of the robots: Bank deploys ‘Pepper’ to assist customers
“Beginning Thursday, Pepper will greet customers at HSBC Bank’s Brickell branch in Miami, and later, possibly other locations throughout Florida, according to bank officials. Pepper’s Miami launch will be the fourth for the bank, following launches at branches on Fifth Avenue in New York City last summer, and in Seattle and Beverly Hills this past spring.
Pepper’s job is to bring you information about basic services offered by the bank, so the bank’s human employees will have more time for “deeper, more high-value customer engagements,” a bank official said in a recent news release.
Pepper is friendly and social, says Jeremy Balkin, head of Innovation at HSBC Bank USA. It can show customers “how-to” videos on its tablet. It can teach customers how to use the bank’s ATM machine or download its smartphone app. It can send links to your device to help you apply for a credit card or open an account.”
