Lenders expect big gains in efficiency as they expand use of the technology
with a prediction that 30 per cent of global banking jobs could be wiped out by artificial intelligence and robotics within five years.
HSBC is similarly effusive, despite the death of its cuddly robot. “I’ve been in many different industries — in aerospace, in telecommunications, in technology — and I actually think financial services is best suited to use AI,” says the megabank’s chief operating officer John Hinshaw. He argues that AI is well placed to bring together the mountains of “legacy technology” that most banks have, and to harness its mammoth piles of data.
He says most impact now is around “risk, compliance and enterprise” — with enterprise being a catch-all phrase for HR, legal and other business support functions.Keri Smith, Accenture’s AI global banking lead, says clients are also using AI as a customer acquisition tool, since banks can offer services in a “more personalised manner” by tailoring promotions based on customer profiles built using AI.
Capco has already built a tool that can identify about 75 per cent of the records a human would. It has been in conversations with clients about deploying the model for use in regulatory change processes. In investment banking, Deutsche is using AI to augment credit risk models to consider a broader range of non-financial factors, particularly climate related. “It’s a decision support tool, not a decision tool,” Leukert says, though he can imagine AI-enhanced models being used for automated credit decisions, subject to approvals.
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