The speed of technological change is exponential. What was yesterday’s hot ticket quickly becomes tomorrow’s old news. It seems like every week there is a new breakthrough in the field and a new record is set in some task previously done by humans. If you don’t already know what AI, VR, AR, and Bots mean, you better get up to speed immediately because these technologies are changing the way data is created, collected, interpreted, and communicated.
In the digital age, “data is money.” The traditional banking system is currently facing a trial by fire situation with the entry of three powerful forces – the digital revolution, changing customer demographics, and increasing regulation.
Let’s look at what has led disruption at the doorsteps of the financial giants?
AI in Fintech
“Device to fade away. We’ll move from mobile 1st to an Artificial Intelligence 1st world.” – Sundar Pichai
Artificial Intelligence (AI) is the theory and development of computer systems that can perform tasks that normally require human intelligence such as visual perception, speech recognition, decision-making, and translation between languages. Today, it is all around us. We carry AI in our pockets, cars, and many of the web services we use throughout the day.
In financial services AI is being similarly deployed in the back-end to power decision making in lending, trading, and financial analysis, and in the front-end to power the customer-facing services.
Potential Use Cases of AI in financial services are:
Cognitive Computive Inspired by Human Brain
Cognitive Computing (CC) is the simulation of human thought processes in a computerized model. CC involves self-learning systems that use data mining, pattern recognition, and natural language processing to mimic the way the human brain works.
It includes the following ostensible characteristics:
Cognitive Computing can build knowledge and learn, understand natural language, reason and interact more naturally with human beings than traditional systems. They are also able to put content into context with confidence-weighted responses and supporting evidence. They can also quickly identify new patterns and insights.
Apps becoming APIs and Bots taking over
Bots are to modern messaging apps what APIs were to Web 2.0: a way to build on top of other services and a new way of interacting with underlying (existing) services, significantly changing human-and-computer interaction.
Therefore, we are witnessing the start of an era, where messaging is the new OS, Bots are the new apps, and the “bot store” is the new app store. Being at the beginning of the bots era and there are many more developments to come. These developments will open up new and giant opportunities for banks & banking consumers.
The digital economy requires a new banking paradigm. For traditional banks, the immediate actions fall into two categories: re-imagining the customer relationship, and integrating digital approaches deeply into the bank’s core. To win this, InfrasoftTech’s exhaustive Enterprise Automation suite comprising of BOTS Cloud, Artificial Intelligence and RPA Engine & Analytics will help banks “out-innovate” and “out-execute” the newcomers at their own game.