siliconindia | | August 20199meaningful analysis for decision making.· AI & Machine Learning: Track transaction patterns in large data sets, can be useful in Anti Money laundering, Wealth management and other areas.· AI & Natural Language Rec-ognition: Track customer interactions and make meaningful analysis.· Biometrics: Can be useful in KYC and mobile security.· Virtual Agents: These are ba-sically bots/chat bots to interact with customer.Bank can leverage these technolo-gies to become:More Collaborative ­ The world of APIs has brought this concept of Connected/Collaborative banking, where banks need to connect with multiple platforms to provide straight through processing For example, payments are recorded directly in customers ERP based on payment API. On front desk, portfolio management services can be completely automated with decision making using machine learning with large data set analysis. More Profitable ­ Data analyt-ics and speech recognition can help provide cross-selling and up-sell-ing opportunities as in the case of Peter above by analyzing customer behaviours and spend habits. Chatbots with Natural Language Processing are creating micro moments for cus-tomers to give a personalized experi-ence by understating their needs for banking relationship.Smart Bank ­ RPA is being used to automate mundane work of record-ing and reconciliation especially in areas like treasury, teller management and reconciliation, with branches. Similarly, chat bots are used to solve customer queries on bank balances. Biometrics are heavily used to rec-ognize customers and also ensure compliance. Mobile and smart wal-lets are another use of technology to improve customer experience in payments industry.Data Driven Compliance ­ Compliance and risk management can be automated and made robust using AI, machine learning and behavior tracking. Blockchain can be useful in KYC and money transfers with complete audit trail. Machine learning can help detect risks and potential frauds in money laundering. Finally, AI and Blockchain can be used to deliver legal compliance to Central banks using complex workflows for central bank reporting.Key Challenges that banks face in implementing these technologies are:Data Quality: The data quality with single source of truth remains the most important challenge. All the above can be provided only if the quality of data that is available for analysis is right and accurate.Systems Landscape: Banks are still on old on-premise mainframe systems which may not be easy to collaborate with external systems. The challenge to break the existing complex landscape and adopt Hybrid cloud or bolt on solutions to provide better customer experience remains a challenge for big banks.Talent: Availability of right talent in this field of disruptive technology continues to be the biggest challenge.Disruptive Startups: Threat of `being ubered' remains from emerging startups like Paytm or Google Pay, where banks need to adopt and react fast in the fast changing world.Regulations: Being a highly reg-ulated industry, financial services ex-ecutives feel it difficult to implement new technologies due to uncertain reg-ulations that may change in future.They Way Forward for Banking & Financial Services IndustryTechnology will definitely bring value to all stakeholders in the industry:Customer ­ with personalized experience; Employees ­ with new opportunities; and Shareholders & Management ­ with reduced cost and improved profits. The industry should have a calculated approach towards adopting new technologies by having a prioritization matrix based on the current and future needs. The industry should also drive this transformation based on outcome/customer impact they want to achieve rather than get carried away with peer pressure or matching the competition. Employee and Union concerns are equally important, and talent management will become the foremost pillar on this transformation journey. Also, Data cleansing and having a role of chief data officer would be very important before carrying-out any transformations. The BFS industry should have a calculated approach towards adopting new technologies by having a prioritization matrix based on the current and future needsSachin Chitlange
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