High Impact areas of AI on Banking Industry
Artificial Intelligence have been imparting a lot impetus to business across domains. AI may not be still a disruptor technology but has high potential to be so in near future. CoForge’s Artificial Intelligence team have identified high potential areas within banking domain that will be transformed by using AI technologies. The major goal is to provide significant savings and / or increase in the top line for the client.
Coforge AI team looked into following areas where AI can help:
- Credit Risk
- Fraud and AML
- Trading, Investment and Market
- Customer Journey
- AI model operations
- Back Office Operations
We understand these areas can be transformed and can lead to:
- Cost Savings
- Customer Delight
- Improved Efficiency across value chain
- Impact on overall Business value
Figure 1 shows the drill down on the use cases for each of the areas described above. Credit risk along with Fraud management can help in cost savings along with compliance. From the operations point of view, recommended precautions, such as social distancing, to minimize the spread of coronavirus, banks might need to alter policies towards employees, traders and others who are relocated to remote offices or working from home because of the spreading virus. We at Coforge believes this is the new post COVID-19 model, where firms embrace technology that enables them to adopt the new operating model, being compliant while conducting business-as-usual in a not so usual world.
The financial ecosystem is in uncharted territory and the situation is evolving every day, it is imperative that financial service organizations be flexible, agile, transparent and act decisively in response to the challenges that are been posed by various entities.
Ask of remaining fiscally solvent, regulatory compliant, humanly true to the “banking mission” is becoming more and more important. This demand is providing impetus for adoption of AI within Banks at faster speeds and in newer areas. Coforge feels that banks needs helping hand to solve the current challenges not only identifying them but also needs partners who can help them using AI for their tactical and strategic needs.
We understand that using AI technologies won’t be straight forward for any organization. Some these challenges are:
- Identifying the areas where AI could be leveraged and give a high ROI
- Do we go for custom build or product approach? There are multiple products available in the market. Mapping the products with the needs identified is another challenge
- How to start the overall AI program, scale the AI initiative and others
- What are the skills and talent required for sustaining the AI initiative
- What could be my business metrics to say if the initiative has succeeded or failed?
How Coforge can help?
At Coforge we understand that using AI is sometime confusing and time consuming. We start engaging with customers by identifying the areas where they can start with. For example with one of the large banking customer, we found that they were facing issues in handling the OFAC alerts as the process requires manual effort and the pandemic has made this more challenging. Our suggestion was to look at this process and figure out how AI can help. To further help customers AI implementation easier and quicker, we have developed accelerators covering Document Processing, MLViens, Computer Vision, Graph AI, Speech Analytics and others. These accelerators are helping our customers in implementing the pilots quickly thereby leading to faster development of production version.
We anticipate that financial sector has a big appetite in using AI based technologies and going forward it may also disrupt the way banking is today.
Coforge feels that AI is changing the way businesses are conducted today but many of these AI algorithms may lead to bias towards certain section of groups. This has to be managed properly and efforts needs to be put in place.
Banking specifically can face challenges when there is bias (not-fair) algorithms. We at Coforge believes that this needs to be handled diligently. At Coforge we are educating and helping our customers towards mitigating these biases by using our own frameworks and accelerators.