Even though banking and financial services have been slower than other industries to adopt the latest technology into their operations, financial organizations are trying to catch up by incorporating artificial intelligence, blockchain, and other technology to benefit their customers, remain competitive and improve business results. Here are the 7 biggest technology trends that will disrupt banking and financial services in 2020.
Artificial Intelligence (AI)
Although banking and financial services tend to be slower to adopt new technologies, a PricewaterhouseCooper study confirms the majority of financial services decision-makers are investing in artificial intelligence (AI)—52 percent of executives confirmed they are making “substantial” investments in AI while 72 percent believe it will be a business advantage. One thing that will likely make the rest believe in artificial intelligence’s potential for the industry are the cost savings that are expected to be $447 billion by 2023.
So, how do financial institutions use artificial intelligence? The most visible way the banking industry uses artificial intelligence (AI) is for customer service from chatbots and robots. Many of the largest financial institutions, such as Bank of America and JPMorgan Chase, use AI to streamline customer service. Another customer-facing way AI is deployed is to facilitate mobile banking that allows 24/7 access for consumers to conduct banking operations. AI is also instrumental in the way financial institutions enhance security and prevent and detect fraud. The technology helps financial institutions with risk management and lending decisions and is foundational in making other technology such as big data analytics, robotic process automation, and voice interfaces work.
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