Information and internet technology are beginning to drive new web-based services that affect every area of today’s economic and financial activity.
This creates enormous quantities of data or more recently known as ‘big data’. This wealth of analytics is produced in real-time, in differing formats, and by a wide range of institutions and individuals.
Central banks are preparing themselves for the surge in ‘financial big data sets’, which reflect the combination of new, rapidly developing electronic innovations, along with large and growing financial, administrative, customer and other commercial forms of records.
In order to help banks and other financial institutes to prepare and future proof their systems to combat this huge increase in data, new techniques are being developed, often referred to as ‘big data analytics’ and ‘artificial intelligence’ (AI).
These new and innovative ways of controlling data, promise to be faster, more holistic and more connected, compared with the more traditional ways of gathering statistics and reporting.
What do consumers want?
Consumers are becoming increasingly demanding in the kinds of services they are expecting from banks, in terms of speed and availability, which reflects the services they receive from other big players in retail and other technological sectors.
According to Deltec Bank, “Machine learning and its sub-sectors, such as AI are providing the platforms for financial institutes to deliver on the increasingly more sophisticated demands of its customers. New innovative technology is enabling banks and other financial institutes to rely less on human experts, which means employees can focus more on improving the customer experience.”
“Machine learning and its sub-sectors, such as AI are providing the platforms for financial institutes to deliver on the increasingly more sophisticated demands of its customers”.
Who is using AI and machine learning?
According to a survey undertaken by The Narrative Science and the National Business Research Institute, 32% of financial services executives have confirmed that they are already using AI technologies such as predictive analytics, recommendation engines, and voice recognition.
How do new banking trends drive new systems, cost-saving, and efficiency?
Using the new forms of technological innovations such as AI, advanced analytics and other methods of machine learning, Banks are now able to tighten up and streamline the internal processes and are able to resolve issues that arise automatically or with the touch of a button.
User-driven data control and analytics eliminate lengthy IT engagements, develop enterprise insight and communication, and also helps to promote leaner, speedier, and more efficient operations.
“The three main areas where banks will benefit from the cost-saving implications of artificial intelligence to save on costs are front office (conversational banking), middle office (anti-fraud) and back office (underwriting)”, said Deltec Bank
A recent report by Business Insider, states the potential cost savings for banks from AI applications is estimated at a huge $447 billion by 2023.
“For banks, the cost-saving implications of artificial intelligence to save on costs are front office (conversational banking), middle office (anti-fraud) and back office (underwriting)”.
So, it seems the future is set, with new innovative ways of controlling the vast amounts of data, and it is coupled with higher-level AI grade platforms designed to deliver sophisticated systems to an increasingly demanding audience.
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.