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).
Gartner predicts that in 2020, organizations using AI tech will achieve long-term success 4 times more than others. Considering the exponential expansion and influence of AI and its exceptional value, adopting this technology is no longer a choice, but a need, for organizations. "The language of business is revenue, and that is completely tied to pipeline creation and progression," says Paula Parkes, Director Marketing, Asia Pacific, Adobe. Drop-off can be as high as 98% for some businesses, especially financial services, resulting in a meagre 2% conversion. AI tech is being successfully used to engage website visitors or prospects calling a company IVR, quickly provide information that aids their purchase process, guide them in filling forms, collecting info, etc. Organizations have reported huge reductions in lead drop-off along the marketing funnel and significant increase in conversion rates post implementing AI tech.
Experts believe that technologies like Artificial Intelligence, Blockchain, Internet of things, Cloud Computing, Cloud Robotics, Automation, Biometrics and Quantum Mechanics would change how we tackle our daily chores and services. Let's take a closer look at these advanced technologies that could shape the Fintech Scenario of remote villager's life. Knowing the fact that the unbanked population could also be uneducated and could only converse in the local language, the agent banking has been flourishing. But how about an AI-based app that could help you provide answers to all your banking needs via voice? Simple queries like – What's my savings account balance or Transfer funds to my kid school account would not only help rural people use the banking services but would also make human involvement redundant.
In recent years, the ability of data science and machine learning to cope with a number of principal financial tasks has become an especially important point at issue. Companies want to know more what improvements the technologies bring and how they can reshape their business strategies. To help you answer these questions, we have prepared a list of data science use cases that have the highest impact on the finance sector. They cover very diverse business aspects from data management to trading strategies, but the common thing for them is the huge prospects to enhance financial solutions. Risk management is an enormously important area for financial institutions, responsible for company's security, trustworthiness, and strategic decisions.
"Based on your behavior each time, it will start to learn what you ask for," Tiede said in an interview. "We think there's a huge opportunity to suggest creative and insightful recommendations to clients. When you log in, it can say, 'Looks like you have sent 100 US dollar wires to Singapore. Do you know you could send a foreign-exchange ACH payment instead? Click here to sign up.'"
There's more than one way to build a paywall. Over the last year, Swiss news publisher Neue Zürcher Zeitung has been using a payment system that is personalized to the individual based on hundreds of criteria. NZZ requires people to register and eventually, pay. But when readers get these registration and payment messages and how those messages look varies based on predefined rules, dozens of A/B tests and machine learning. "If we're to be successful in paid content, we need to individualize the experience with our product and the product itself, and automate our marketing approach," said Steven Neubauer, managing director at Neue Zürcher Zeitung.
"Those three make a lot of sense," says Charles Moldow, a general partner at Foundation Capital, a venture-capital firm in Palo Alto, Calif. "These are the areas we are most focused on," he says. Artificial intelligence has benefited from advances in processing power and analysis that are opening myriad new ways to create products. Meanwhile, growing attention to cryptocurrencies has helped persuade a crop of highly skilled entrepreneurs to work on putting the underlying blockchain technology to various uses. As for the third: "Cybersecurity should be a perennial anchor on the list," Mr. Moldow says.
Among millennials, the cryptocurrencies investment trend is gaining momentum for retirement purposes. Moreover, as tech-savvy millennials are shunning traditional banking methods, innovative startups are creating new retirement solutions powered by blockchain and artificial intelligence technologies. Most millennials, people born between 1981 and 1996, are not saving for retirement. For example, in February 2018, the National Institute on Retirement Security released a study, which concluded that "95 percent of millennials are not saving adequately for retirement." Then there's the fact that over 66 percent of working millennials have nothing saved for retirement.