Artificial intelligence has the power to help financial institutions with compliance, marketability, and productiveness. AI can relieve human employees of tedious tasks and alleviate their workload, but some financial institutions are questioning its reliability and value. Financial Technology Today has compiled some of the top stories surrounding AI and its implementation. Read on to learn more.
“Myca,” the virtual career coach, will use AI to help employees set career, training, and skill goals. Citizens will use this technology to automate the tedious aspect of human resources, guiding employees whenever needed. Citizens is one of five global companies that is working with IBM to develop a virtual career coach. Citizens will begin testing “Myca” next month and is expected to unveil the technology to all employees next year.
“Part of the intelligence of this is that we can’t have an individual career coach for every person, given the staff levels you run,” said Van Saun, chairman and CEO of Citizens. “Everybody would like to have a mentor that can help plot every move that a person can make.”
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Bank of America is harnessing the power of AI to offer automated payments to business customers by partnering with HighRadius. AI compares customer information on assorted documents, sends this through receivables from invoicing to forecasting, submits the information to the corporation’s accounting system and highlights shortfalls and delays. The system of cloud-based software is called Intelligent Receivables and sources data from myriad channels like emails and online payment sites. It then matches the data to money that flows in.
“I am able to figure out up to 95% of the time what this payment was for and who paid it, and send you a file, just like back in the lockbox days,” said Rodney Gardner, global receivables head. “I’ve not touched it. The client has not touched it. The algorithm gets smarter as it goes, and that’s how the straight-through rate improves over time.”
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According to Cathy Bessant, Bank of America’s chief operations and technology officer, financial institutions need to discuss how AI and other technologies will affect them. Bessant explained at the American Banker’s Digital Banking Conference, that financial institutions who fail to account for the consequences of AI may face operating issues in the future. In coming years, it is likely that customers will choose banks based on digital capabilities rather than branch location or personal connection.
“It’s not about what can AI do, but what should AI do,” Bessant said. “We need to find the balance between how we use AI and how it uses us.”
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According to a recent study by EY, Global Banking Outlook 2018, the top priorities for financial institutions are growth, control, and protection. Eighty-three percent of companies polled said they will “gain efficiencies through technology adoption.” Only 40 to 60 percent of financial institutions will invest in fintech such as AI, virtual reality, cloud technology and cybersecurity.
“It’s clear traditional banks need to embrace digital advances, such as those under the FinTech umbrella, to drive opportunity. Not only will this improve efficiency and help to manage risk; it’s critical to sustainable success,” said James Turner, managing director of Turnerlittle.com.
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