Artificial Intelligence (AI) is becoming ubiquitous in recent years and its uses are seen in every industry from health, to travel, to banking, to hospitality and finance. According to the IHS Markit's "Artificial Intelligence in Banking" report, the global AI market is expected to reach $300 billion by 2030. AI is becoming important for all businesses that rely heavily on data. This is because this technology has the ability to teach itself and make it better through its practice. This is done through deep learning which includes the acquisition of new knowledge, the development of motor and cognitive skills through experience or practice, the assembling of knowledge into general, effective presentations and the discovery of new facts and theories through observation and experimentation.

Today, terms like Gen-Z and Millennials are the craze words for most businesses world over as they account for more than 60% of the demography. Unsurprisingly, everyone wants to understand what moves them emotionally, physically and financially. Moreover, their communication and consumption behavior is shifting trends and in many cases, causing trends to emerge. One of these trends is that of the Digital lending marketplace where one can avail any kind of loans at the click of a button! Notwithstanding the higher cost of capital, the enticing factors of this digital lending marketplace are bespoke lending products, convenient & quick disbursement and completely paperless transactions.

The financial world is no stranger to AI and automation. In 2016, it was estimated that 75 per cent of global trade was handled by algorithms. Major companies like Two Sigma, Goldman Sachs and Man Group PLC already use machine learning techniques as a strategic aid and research tool, and smaller businesses are beginning to do the same. The application of AI to financial decisions is yet another indicator that the days of traditional finance are numbered. But how has the technology affected the sector, and what can organisations do to keep up?

In light of the increased digitalization in the financial services industry and an uproar of disruptive fintech technologies in Southeast Asia, Software AG today released its top five predictions for the banking industry in Asia Pacific for 2017. "There will be some seismic shifts in the banking industry in 2017, as threats and opportunities from digital banks, fintech and regulation continue to shake the business landscape in Asia," Anneliese Schulz, Vice President, Software AG Asia. This year will finally see banks begin to wrap their arms around their most valuable asset: client data. While banks have spent millions of dollars to collect the data, few have dedicated themselves to fully operationalizing the insights to be gleaned from it by using predictive analytics and machine learning. In fact, a recent survey by Options Group revealed that to maximize the opportunities offered by emerging technologies, banks are expected to hire significant technology specialists, aimed at turning data into actionable insights.