Banking and AI
By Bernard Lam on the 23rd November 2022Banking Artificial Intelligence
When it comes to technology, banks are synonymous with legacy systems and a slower uptake on technological change. This pace is often by design - they are responsible for keeping our money safe. In a recessionary environment, there’s a heightened focus on cost control, and the ability of technology to support that. Banks will continue to invest in transforming their products and enhancing client experience.
In a report by Forrester on emerging technologies in banking, six trends were high priority, 5G, AI: Computer Vision, Machine learning, Natural language processing and natural language understanding (NLU), microservices architectures and real-time/predictive analytics. These trends reflect both interest and planned spending in the next year. These initiatives will continue to shape the future of the banking industry and customer experience.
By improving automation across all banking processes, banks can cut costs, stay competitive and provide a better customer experience. Currently, AI is deployed within large institutions, as a partner to existing processes. Fraud detection and anomaly flagging are strong use cases, combining cutting-edge technology without losing the human aspect that enhances security. As the technology matures, explainable AI will allow for rapid information gathering across large organisations and much faster decision-making.
Large, regulated institutions have to be thoughtful about how the newest technologies are applied and it will take time to build trust. The safest deployments will be incorporated around existing processes, in service of exceptional client service. Banks are people-based businesses, and will remain that way.