Fintech in Banking

Artificial Intelligence (“AI”) had a significant impact on the banking sector in 2017. There is basic AI and industry AI. Basic AI is integrated into application systems such as facial or speech recognition. Industry AI has application in anti-fraud, robo-advice and so forth. Currently, mainstream AI technology is data driven machine intelligence. Application of AI can be divided into three phases:

Application of Artificial Intelligence

The first stage is business automation – replace repetitive work with AI. Big data intelligence is the next stage. The third stage is to fulfil all-channel intelligent decision making and updating optimization through customer response.

In recent years, big data has been widely used in several areas of banking. Progressing from data analysis reports to data mining models to data products. Customer and product profiles provide continuous input to modelling process. As a result, there is improved customer perception, more intelligent algorithms and faster decision support. Banks can only develop a global perspective by building their foundation on big data.

Reference:

The Future of Fintech in Banking, Tian Jiang, CFA, Fintech 2018 Report, CFA Institute