application forms, with hesitation patterns potentially signalling risk.

Risk management has undergone perhaps the most dramatic change. Following 2008’ s financial crisis, banks invested heavily in models that predict market volatility and identify brewing systemic risks.

Stress testing – once an annual exercise – now happens continuously through sophisticated simulations. Customer relationships have been equally transformed, with banks predicting which clients might defect, identifying cross-selling opportunities and timing marketing campaigns for maximum impact.

Barclays reports significantly higher response rates since implementing predictive customer communications.

fintechmagazine. com 93