A perfect storm of pressures which has been building on the financial services industry for years has come to a head. Covid-19 has been a catalyst for change for institutions who have been facing a build-up of competitive and regulatory pressures and now have to face the urgency of making their business models fit for purpose. AI, for many years a "nice to have", has now become integral to running a financial services business efficiently and profitably. US banks are ahead of the curve here: many have already gone through their AI transformation and as a result are in better shape for the next decade. Many European institutions need their own AI revolution in order not to become obsolete.
Opsmatix, an innovative provider of Artificial Intelligence -powered omnichannel operations automation solutions, announces a strategic partnership with US-based Sand Hill East (SHE) LLC a highly successful business acceleration and strategic venture advisory group. Led by industry leader Andy Brown, SHE will be introducing the Opsmatix SaaS product into the Americas. The Opsmatix SaaS platform is an AI-powered omnichannel intelligent business automation solution. It is proven to enable firms to reduce operating costs by some 40% whilst significantly improving customer and staff satisfaction rates. At a time of falling margins, most financial services firms are striving to reduce costs and transform customer service capabilities.
Have you used the customer service app with your bank the past year, or received an unexpected email with an offer you were actually interested in? Maybe it was a well-timed mortgage re-fi or even some savings at a favorite store. There's an enduring and unfortunate misperception that AI serves only to replace human workers and irritate human clients. But what if we don't have to be locked in a zero-sum game with the growing legion of digital intelligence? An increasing number of banks and insurers are finding that it's almost impossible to meet the rising customer expectations and needs that digital services and apps have unleashed.
As the UK starts its roadmap out of lockdown, we've learnt that Artificial Intelligence (AI) will be one of the most significant technological influencers to reshape how the financial services sector will evolve in the near future. As the sector has had to adapt quickly to lockdown it's become clear that financial services businesses can commercially set themselves apart from their competitors by adopting AI across a number of disciplines. AI is growing in all sectors and that growth is showing little sign of slowing down. With a global market value worth $30 billion the AI technology sector as a whole is predicted to grow to a staggering $733 billion by 2027. Here we identify the crucial areas where we find AI will benefit financial services businesses.
"Customer experience is chief among the areas where traditional financial institutions have fallen short. Not long ago, wealth management was considered a service almost exclusively confined to the affluent. With their millions at the ready, wealthy investors could use wealth managers to provide a range of tailored investment-related services, and those services would normally come at a high price. But these days, such a perception of wealth management is becoming old, or simply not accurate. Innovation broke down those barriers of exclusivity, enabling services that were previously only accessible to the privileged few to be in the hands of the masses of ordinary investors. Wealthtech falls under fintech as a segment which specifically focuses on technology that aims to transform wealth management and retail investment. It involves the application of digital solutions to wealth management, ultimately providing new channels to deliver more efficient, cost-effective and efficient ...
Just about a year ago, before the world was locked down, the big fear was technology taking over jobs. But, over the extended global lockdown, humans seem to have discovered greater faith in technology and machines, according to Oracle's Money and Machines: 2020 Global Study that was conducted across 9,000 consumers and business leaders in 14 countries. India is among the top three geographies including Japan and China where 83 per cent of Indians and 88 per cent of business leaders now trust artificial intelligence (AI) more than humans to manage finance. Across Asia-Pacific, 76 per cent of consumers said they would trust a robot more than a financial adviser, while at a global level it was 67 per cent. Covid-led financial anxiety, and sadness among both consumers and business leaders more than doubled in 2020.
Historically, the financial services industry has been one that approaches technology with caution. Feasibility, regulation and privacy have all been barriers to tech adoption over the years. But that's changing--a move brought on not only by choice but necessity. Financial institutions are drowning in text data, from compliance reports and contracts to news stories and even social media musings. The pace of information has accelerated exponentially over the past decade, and traditional processes just can't keep up.
What are some of the key trends in financial services that will further evolve in 2021? If the first two months of this year are any indication, 2021 will be an exceptional year for fintech development, especially in regard to new funding and partnership opportunities. We wrote about some of this earlier this year: from vertical integration to embedded finance, we see new opportunities and emerging business models for both incumbents and fintech startups, propelled by technologies such as artificial intelligence and cloud computing, ushered in by a centralized workforce and customer appetite for all things digital. But digital transformation is not just about tech disruptions, and technology isn't just about bits and bytes, just as Margaret Hamilton described the Apollo project as "a system of software, peopleware, hardware". Behind the push for digital transformation is a renewed focus on the unique characteristics that make us human.
Artificial intelligence (AI) is rapidly gaining momentum as a vital business resource as organizations discover new use cases in their efforts to improve processes, increase efficiency and automate costly, manual tasks. Industries such as financial services are ideal for AI-driven applications and a related technology, machine learning (ML), because they can bolster customer service and leverage data to increase competitiveness. AI includes software that's designed to work in ways similar to the human brain, while machine learning encompasses programs that alter themselves based on data that's fed into the programs in order to train them. Recent industry research gives a sense of how AI usage is on the rise. Global spend on AI is forecasted to double during the next four years, growing to $110 billion in 2024, according to research firm IDC's Worldwide Artificial Intelligence Spending Guide.
I recently reviewed one of the best books written on AI to date, AI Super-Powers, where a brief history of AI is explored across the four waves of evolution experienced over the last few decades. From chess-playing, payments, making friendships, medical diagnoses, and help with investing money, AI continues to play a much broader role across many market segments. If we switch our focus to Financial Services, AI adoption is outstripping any other non-manufacturing sector, with players using the technology to solve real business issues. Here we examine the top 6 use cases across banking where AI is making a difference. KYC/KYB/AML and Customer Onboarding – This process, which is key to onboarding customers for any regulated banking product, still seems a challenge for incumbent banks.