6 January 2021

Artificial Intelligence, Algorithms, Big Data and the Future of Banking

Technology has brought new opportunities and challenges to the banking sector, in fact, banking as we all knew it with a heavy structure no longer exists and the current times have only accelerated the bet on digital. Fintechs, moratoriums, reinforcement of regulation or uncertainty in the markets are themes that occupy the managers’ list, which today need more transparent, simple and effective business models.

66% of bank executives say that new technologies will have a higher impact on banks by 2025, according to Contentstack.

Uncertainty and security are two of the words that are on the agenda today, and that will unquestionably mark the coming months. The sector must continue to modernise and accelerate innovation processes to gain higher competitive advantages, creating greater agility and offering more value to the customer.

By having available data from customers and the market under analytics, the banking and financial services sector can provide more personalised products and services and in different channels in this more disruptive, competitive and digital Era, where the customer has more and more autonomy about the processes.

Also, the adoption of Big Data and Artificial Intelligence solutions allows the sector to have, in real-time, several insights that enable better decision-making, streamline and optimise operational and analytical processes, reduce costs and anticipate market trends, which translates into better organization performance.

Presently, customers are looking for agility, speed and security and, therefore, the customer experience has become of vital importance. Therefore, organizations need tools that allow detailed knowledge of what customers want to give a faster and more flexible response. Combined with this situation, the sector is under large pressure to remain profitable and reduce costs, so the processes need to be automated, agile and efficient.

Artificial Intelligence brings more knowledge and some changes in the way how financial institutions approach customers on digital channels. In terms of experience, chatbots allow you to solve problems accurately anywhere and anytime. However, Artificial Intelligence still has a very positive impact on the profitability of tasks, by accumulating, for instance, the most monotonous and repetitive tasks, thus allowing employees to have more strategic, creative and higher added value roles.

Through data and statistical algorithms, it is possible to monitor payment transactions to identify fraud or money laundering attempts, in addition to having accurate predictive analytics to personalise investments or measure credit risk.

It is through these solutions that it is possible to have access to crucial information, quickly and simple that allows the monitoring of corporate data, investments or products, that enable obtaining knowledge about the behaviour and expectations of consumers, promoting the offer of more personalised and innovative services and products and also capacitates the identification of new opportunities with customers and markets.

An accurate and up-to-date view of financial data, as well as customer knowledge or effective analytics of risks, are just some of the advantages that technology offers Banking. Nevertheless, the truth is that the synergy between Big Data and data analysis, together with Artificial Intelligence, brings unprecedented benefits to any sector with a significant increase in performance and a reduction in operating costs.

As we have seen, in-depth analysis of historical and current market data provides sophisticated data on trends and forecasts of market behaviour. By having the right technology available, it allows you to redefine processes, create innovative products and services, automate functions and transform the relationship with customers and employees.

Disruptive technological solutions undoubtedly lead to bolder and more efficient business models. Is your organization prepared to face the future with resilience and confidence?

 

 

 José Oliveira BI4ALL
  José Oliveira         
        CEO