CUSTOMER EXPERIENCE
Trends in financial services AI
Dan Johnson , Director of Automation , FutureWorkForce , says four main areas will see major changes within the next five years :
Process control and optimisation ( PCO ) utilising process mining and management tools will help companies make business processes more efficient , fast and increase overall productivity .
Customer Experience improvements utilising virtual or Robo assistant chatbots powered
with AI and ML will respond within seconds . With the growing competition on the market , quick customer engagement will be a must .
Credit scoring : The majority of currentlyused credit scoring systems are outdated . Their decisions are based on a supposed customer base , including demographics , age , marital status , possible preferences . AI and ML usage for decision making , compliance and proactive customer marketing will be adopted to reduce churn and improve customer experience .
Insecurity , the increased use of AI by cyber defence tech companies will provide proactive mechanisms for fighting off attacks and protecting valuable data from hackers .
AI and cybercrime As well as data regulation and bias management , the latest technology is also being used to improve security for financial service providers . Julian Dixon , CEO of Napier , a provider of anti-financial crime compliance solutions , says the incumbent anti-money laundering market was saturated with legacy technology providers that were falling short in their abilities to deliver to stakeholders .
However , now the situation is improving , and the balance is being addressed , making users and their data safer , says Dixon . “ The number of fines that organisations using this outdated technology were receiving was also on the rise , which suggested a clear problem with the processes that were in place .”
He believes there has been a change in thinking , and organisations are starting to embrace the use of machine learning and AI in compliance .
“ You cannot underestimate the levels of criminal activity within the finance sector . Those who have prospered from illegal activity have an unlimited budget , an appetite to continue and access to sophisticated technology .
“ The whole point of algorithmic decision-making is to discriminate – to judge people according to certain criteria ”
DR GARFIELD BENJAMIN POSTDOCTORAL RESEARCHER , SOLENT UNIVERSITY
40 August 2021