Oct 1, 2021
Shamayun Miah — How Artificial Intelligence is Transforming Financial Services
Since the financial crisis, the banking industry has faced-low-interest rates, deleveraging, low credit growth, increased regulation and higher compliance requirements. On top of this are experiencing greater competition from the entrance of fin-tech, who are more innovative, agile and do not have the legacy IT systems holding them back. The financial services industry recognizes that the only way to compete is by deploying cutting edge and innovative technology. The industry requires a whole scale transformation of both back-office and front-office systems, processes, and talent. These institutions recognize the power of AI, Robotics, Machine learning and Cloud Computing.
Artificial Intelligence combined with data analytics has the potential to deliver over $1 trillion of value. Less than 70 years from the day when the very term Artificial Intelligence came into existence, it’s become an integral part of the most demanding and fast-paced industries, be it health care, retail, or banking.
Our idea here is to bring out the exceptional contribution of AI in Financial Institutions: -
Fraud Detection:
Credit card fraud has become highly prevalent, especially after the increase of e-commerce and online transactions. AI identifies a user’s buying patterns, behavior, and location and triggers an alarm when unusual activity is monitored; it does this by ingesting millions of points data and machine learning algorithms.
Organizations like Bank of America, Goldman Sachs and JP Morgan understand the importance of their AI-based fraud detection system. Their advanced algorithms can analyze interaction under different conditions to establish a relationship that might detect fraud.
Being in the industry for more than 15+ years, Shamayun Miah has worked in Management Consulting and Systems Integration firms. He has helped banking clients transform by implementing AI, Robotics and Cloud solutions at scale.
Shamayun Miah believes the financial services industry is at a pivotal moment. Technology disruption, be it AI, Robotics, Cloud Computing in combination with consumer shifts, are laying the basis for a new S-curve for the financial services business model.
Personalized Banking:
AI is enabling differentiated experience to the end-users by providing personalized experience, for example, natural language chat-bots that go beyond providing simple Q/A; they provide comprehensive solutions that allow end-users to ask complex questions, seek an immediate response, interact, pay bills, resolve complex financial issues, and seek advice based on their spending patterns.
“JP Morgan ‘s [AI technology] can review approximately 12,000 documents in a matter of seconds…a human would spend 360,000 hours on the same document.” — Brummer and Yadav, 2019
AI is highly beneficial at analyzing data, providing decision-makers with valuable insights and helping banks get more decisive reports to encourage the right business decisions.
What’s Next?
Shamayun Miah is optimistic and sees AI as an integral part of the banking and financial systems of the future, be it account security with facial scanning, Bio metrics with voice, machine learning for fraud detection, or conversational bots for account management. All this will make banking more accessible and allow the industry to provide differentiated services and drive the costs to serve lower.
