A slew of fintech and regtech companies have entered the financial sphere to help aid banks in their search for cost savings and better efficiencies. Improving security, following regulations, and effective compliance are all benefits that financial institutions can receive from these companies. And, in the realm of “time is money,” these services aren’t cheap. Bain & Company has figures that show these services can become up to 20 percent of a bank’s total costs.
But are these services the best option? Yes, because what they offer increases productivity in ways necessary to stay ahead of the competition. However, many banks are overlooking the efficiency-boosting, cost-saving benefits that artificial intelligence — a technology currently accelerating almost every industry — can have in the financial services field.
Understanding AI in Banking
Let’s start with the basics of AI: Artificial intelligence uses algorithms and mathematical models to process data quickly. Machine learning is a form of AI and it processes data to produce numerous, actionable insights. Deep learning, another form of AI, uses human brain-like neural networks to make informed deductions about real-time data. Where machine learning lives in the realm of backward-looking descriptive and diagnostic analytics — understanding the past — deep learning takes AI to the future with predictive, prescriptive, and cognitive analytics — what comes next?
This ability to, in a sense, see the future is a huge potential boon for financial institutions with 72 percent of financial professionals seeing AI as a problem solver in the industry. Whether it’s in improving regulation and compliance to save costs and time, increasing fraud prevention and security, or improving the customer experience for greater satisfaction, AI is the potential catalyst for so many innovations in banking. And Intel has the AI solutions to make adopting this game-changing technology easy.
Leveraging AI in Banking
While AI has many applications that can improve security and efficiencies in banking, it goes beyond these boons to offer incredible insight into customers. Deep learning is all about making connections between sections of data, large and small. These connections can lead to reduced costs and lower complexity across systems by processing tons of customer data more quickly than ever before possible.
In the financial realm, Intel’s fast, easy, and scalable Nervana Platform can act as a hub to process a financial institution’s mountain of data and turn it into timely, actionable decisions. Time is money for your customers too. Deep learning produces insight to make their, and your lives easier by boosting efficiencies leading to happier customers and more successful banks.
The next step is to look even further ahead, which is where cognitive analytics comes in. Intel’s Saffron Platform is an analytics solution that turns data into knowledge and knowledge into business recommendations. By using AI to fuel memory-based reasoning, you get deeper insights faster than ever before.
These insights can drive more productive business operations, better customer engagement across more platforms, and next-level risk identification and compliance response — in short, it’s better banking with better results. And with quicker, deeper insight you can act on with data-driven confidence, your financial institution can save time and money, so you can start heading the next issue off at the pass.
For more information on how AI is accelerating revolutionary change in the financial sector, as well as how to stay on top of the potential disruption that comes along with it, stay tuned to the Intel IT Peer Network.