AI can have Positive Impact on Banks' Business

The right AI platform will manage a variety of data sources, both internal and external

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The use of artificial intelligence (AI) and machine learning (ML) in financial services (FS) is on the rise, with 83 percent of banks having evaluated AI and ML solutions, and 67 percent having actively deployed them, according to a new study.

The research with 200 global tier one and tier two banks was conducted by capital market research firm TABB Group on behalf of augmented intelligence solutions provider Squirro, and revealed that AI is the most important ‘disrupter’ for banks today. The study – 'Enhanced Bankers – The Impact of AI’- also highlighted a lack of understanding around AI and ML as specifically applied to improving business processes, with 83 percent of respondents still unaware of how to apply the technology to solve business problems.

Using AI and machine learning to source new leads and opportunities is key to bankers, with 87 percent of respondents saying that it would be highly impactful if an AI engine could spot relevant events that led to engaging with a client and closing a deal. Bankers recognize that AI-driven insights will have a tremendous impact when it comes to anticipating the market events to stay ahead of the competition.

“The potential of augmented intelligence to support relationship managers with data-driven lead sourcing and next-best-action recommendations is starting to gain real momentum,” said Miguel Rodriguez, VP Customer Success at Squirro. “Investment banking as an example is highly competitive and anything that provides an advantage will be seized upon, although investment banks could use AI even more effectively by deploying it to enhance specific business processes.

Also, 84 percent of respondents said that a real-time 360° Client View, combining internal and external data was either important (17 percent) or very important (67 percent), to obtain insights.

“The right AI platform will manage a variety of data sources, both internal and external, be able to analyze the data and provide the relevant information in the context of core banking or CRM systems,” continued Rodriguez. “There is particularly great value to be gained from unstructured data, an area that traditional CRM and core banking systems have been unable to cover. Our augmented intelligence solution can bridge this gap and open up unstructured data to banks by connecting data silos. This will be a vast leap forward in terms of the insights generated.”

The research also revealed a large majority of bankers wanted AI insights delivered to them using existing methods, making AI as integrated into current workflows as possible. And, 100 percent of respondents said they would want AI-driven recommendations via email, while 83 percent wanted them within their CRM system.

Just 17 percent of respondents wanted AI-driven recommendations via mobile, highlighting how much of corporate FS remains a desk-based industry. 

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