Will AI Change Banking for Good?
A study of 34 major banks across geographies (US, EU, Singapore, Africa, Australia, and India) found that 27 out of these 34 banks have implemented AI in their front-office functions in the form of virtual assistants, chatbots, and digital advisors. Across these regions, some of the most prominent banks in this space are OCBC, ABN Amro, Bank of America, and YES Bank. Front-office applications have certainly seen a significant increase in intensity, scope, and adoption. In reality, however, the AI strategy in the US banking industry is far more diverse. One of the more explored areas of AI/ML\ application is automation. The estimated global market potential of RPA is projected to be $8.75 billion by 2024.
All major banks in the US are experimenting with AI in one of the four sets of applications: front-office uses; back-office uses; trading & portfolio management in financial markets; and uses of AI and machine learning by financial institutions for regulatory compliance (RegTech) or by public authorities for supervision (SupTech). In Asia, AI could produce an economic value between $1.8–$3 trillion a year by 2030, generated by the introduction of new product services & categories, cost savings arising from better products, lower overall prices, and improvements in lifestyles. While the two largest economies globally dominate global research and development in the artificial intelligence (AI) field, Credit Suisse expects China to come first in the race. RPA is expected to have a $6.7 trillion economic impact globally, a plan that will result in a 40-45% growth of global spending on technology.
In one of Provoke.fm’s podcasts, Brett King, JP Nicols, and Philippe Van Fraechem (GM, North Europe & Worldwide Program Director, EFMA) discuss where the banks are with the adoption of AI, emphasizing the role of customer experience and customer success in bringing the advanced technology into customer-focused areas—both in the banking industry and in the tech/internet world—and what we can hope for them in 2018.
To learn about Prove’s identity solutions and how to accelerate revenue while mitigating fraud, schedule a demo today.
Keep reading
Read the article: Prove Launches Unified Authentication Solution with Passive, Persistent Customer RecognitionNew solution delivers measurable ROI by replacing SMS OTPs and mitigating SIM swap fraud – cutting costs, reducing abandonment, and enabling seamless customer experiences across channels.
Read the article: A Watershed Moment for Digital Banking: FDIC's New Stance on Pre-Filled Data Paves the Way for a Safer, Faster FutureIn this blog, we detail how the FDIC's new guidance, influenced by Prove's advocacy, allows banks to use pre-filled customer data for CIP. This change, empowering solutions like Prove Pre-fill®, significantly reduces friction, enhances security, and improves financial inclusion in digital banking by streamlining account opening and combating fraud.
Read the article: The Anatomy of a Systemic Failure: The U.S. Banking System as a Conduit for Transnational CrimeThe U.S. banking system is a conduit for transnational crime, with systemic failures in identity verification and a lack of oversight, enabling fraud and money laundering. Read Prove’s call to action for the financial industry.
