After a hugely successful two days in 2017, Insurance Nexus are delighted to announce that our Insurance Analytics Canada Summit will be returning to Toronto in 2018, September 25-26, at the Westin Prince Hotel. Written by insurance carriers, for insurance carriers, Insurance Analytics Canada is Canada's largest analytics summit and the only conference to focus exclusively on new strategies for embedding AI and advanced analytics in insurance. Over 300 C-level attendees will learn from the experts on how to seamlessly integrate new technologies alongside legacy systems, and how AI and advanced analytics canaccelerate underwriting, fast-track claims and ultimately, make their organization stand out in a hugely competitive insurance market. Specifically tailored to the Canadian insurance market, Insurance Analytics Canada will feature multiple tracks, each focusing on salient issues identified by Canadian insurers. Confirmed speakers include Desjardins' Senior Vice President of State Farm, Barbara Bellissimo, who will cut through the hype to discuss the realistic benefits and applications of AI, as well as Intact's Vice President and Chief Data Officer, Jean-François Lessard and Anne Foat, Global Digital Transformation Officer at Sun Life Financial.
Alternative data will likely transform active investment management over the next five years, according to a white paper by Deloitte. Those firms that do not update their investment processes within that timeframe could, they argue, face strategic risks. Alternative data is a wide term that spans multiple categories. In brief, it refers to any non-traditional data (ie market price data, trade volume data) and includes online search data, trade data, satellite and weather data, consumer transaction data, geo-location data, etc. "The amount of data is growing exponentially. IDC said that there were 16.3 zettabytes of information generated in 2017 alone (one zettabyte is 1 billion terrabytes).
A recent survey of 1,200 executives across the financial services industry by Accenture finds 74% of executives see artificial intelligence reshaping their industry. The report's authors, lead by Ellyn Shook, estimate that between 2018 and 2022, banks that invest in AI and human-machine collaboration at the same rate as top-performing businesses could boost their revenue by an average of 34 percent and their employment levels by 14 percent. But it takes investment in people – AI is taking over many tasks, but skilled people are needed to either create or train these systems, or to augment them. Tellingly, there has been precious little movement to provide the right training to bring these skills about with the current workforce. The Accenture survey finds only three percent plan to significantly invest in re-skilling the people in their workforces for this AI-driven future.
The public perception of stock exchanges remains little changed since the Big Bang deregulated the financial markets. Anytime a trading floor is depicted in a film or TV series, you can expect to see a group of men frantically waving their arms and shouting at a bank of screens showing the ups and downs of share prices. But the reality is different. Around three-quarters of exchanges on the NYSE and Nasdaq are now carried out by algorithms - computer programs designed to follow a particular set of rules - and not human traders. The last stock exchange in Scotland closed in 1973.
Financial services and insurance companies are delivering on digital transformation promises faster than other industries, according to a Thursday report from Adobe and Econsultancy. Of 700 senior industry leaders surveyed, the majority (61%) are either already using artificial intelligence (AI), or plan to adopt the technology within the next 12 months--putting the industry far ahead of other sectors (44%). Among the 20% of financial service companies already using AI, 43% said they are tapping the technology for data analysis, the report found. A sizeable number of others are already using AI for on-site personalization, optimization, testing, and automated campaigns (about 20% each). SEE: IT leader's guide to the future of artificial intelligence (Tech Pro Research) AI has become one of the great, meaningless buzzwords of our time.
IBM is deploying sophisticated technology under its Watson Financial Services brand to improve risk management across financial firms. The initiative has several components, said Michael Curry, vice president of engineering for Watson Financial Services at IBM. "One piece is more focused on financial risk -- market, credit and liquidity risk that are associated with portfolios. The Armanta acquisition we announced a few months ago sits in portfolio management but we are applying it in other places too. "The second piece would be more operational risk, and there you have two components. One is some of the areas of financial crimes and fraud where we have our Financial Crimes Insight Engine, a platform for finding patterns of fraud and market abuse.
Artificial intelligence (AI) is already here, and it's becoming more powerful all the time. Indeed, the finance industry is already investing heavily in the technology to leverage the incredible insights and competitive advantages it delivers. According to Tractica, investment in AI for enterprise applications reached $3.7 billion worldwide in 2017. But this is only the tip of the iceberg. It is estimated that this figure will reach more than $80 billion in 2025.
This story was delivered to Business Insider Intelligence "Fintech Briefing" subscribers. To learn more and subscribe, please click here. Wealth managers globally are looking to implement more AI and machine learning solutions within their businesses to keep up with the threat of emerging digital wealth managers. A vast majority, 93%, of wealth managers think that AI will play a role in the future of their businesses, according to a new study from Forbes Insights and Temenos. The sentiment toward the emerging tech broadly is favorable from wealth managers and high-net-worth individuals, with 86% and 96%, respectively, seeing digitization as essential and positive.
New data from Juniper Research has found that banking RPA (robotic process automation) software and services revenue will reach close to $900 million by 2022. Juniper expects the market value, estimated at $214 million in 2018, to expand over four times by 2022. RPA was traditionally limited to replicating simple or repetitive tasks that require high accuracy, such as data entry. The market currently represents a'perfect storm' created by the convergence of chatbots, AI-driven RPA software and banks' digital transformation strategies, according to Juniper. The research found that this has created renewed interest in RPA for financial services, driving market spend.
Bank of Baroda, is contemplating integrating blockchain, artificial intelligence (AI), and robotics to increase business. Chief Executive Officer (CEO) Managing Director PS Jayakumar told MoneyControl, "The third-largest public sector lender has laid out a digital roadmap that will remove the need to worry about small balances in bank accounts. The cost of managing these accounts will be offset by the efficiency of opening bank accounts, and the lender would focus on product delivery." Explaining further he added, "We want to be able to anticipate what our customers want in a seamless manner. We have introduced tablets and now open almost 4 lakh accounts every month in 10-12 minutes (per account).