Within the last decades, every industry branch passes a period of transformation – and banks are no exception. Long-established systems like floor and telephone trading have already been replaced by electronic solutions. Progressive digitalisation also has an impact on the general business model and, at the same time, offers new opportunities. With each response, each transaction and each deal a large number of data is accumulated and consequently, valuable conclusions can be drawn: Artificial Intelligence is the magic word which, also for banks and the finance industry in general, opens doors to wide-ranging possibilities.
Prospectively, Artificial Intelligence may help banks to make data processes more cost-effective and more efficient and thus reach decisive competitive edge. On the downside, banks have to touch one of the most important and trustworthy values: the own transaction data. The use of Artificial Intelligence is still in its infancy in German banks; institutions realise very slowly which benefits AI may generate with regards to the competitive situation.
As long-standing software provider, valantic also works on solutions for utilising Artificial Intelligence in banks and financial institutions. AI will not be able to replace humans but can, in future and in parts already now, do the groundwork for the final decisions made by humans.
Download our white paper and learn more on how innovative systems and AI may help to make data processes more cost-effective and more efficient.
»The data which is made available within the scope of digitalisation and electronic banking systems should be the basis for AI systems in order to remain competitive on tomorrow’s markets.«
Andreas Schebesch
Division Manager of Product Development & Strategy
valantic Financial Services Automation
Depending on the used Artificial Intelligence approach, future-proof AI systems are able to independently classify data, detect relations or make predictions. Also, intelligent applications are continuously learning and developing – over time, they become more and more precise. With the usage of such systems, banks and financial service providers see more velocity, more efficiency and higher earnings in the ongoing business operation. The application possibilities for Artificial Intelligence are not only limited to the transaction side – quite the contrary, in the first place this technique is used in consumer transaction.
Together with speech engines and chatbots, Artificial Intelligence can be very useful in customer service and assist with serving the customer better and faster. With Conversational AI, valantic goes even further: Installations and systems are interlinked via naturally spoken dialogues. Conversational AI is more than a simple chatbot and can control operating processes in devices and applications via natural speech.
In addition, banks work on ways to specifically address their clients by better evaluating the already available data. In transaction business, Artificial Intelligence may help to accelerate the communication and creation of offers. Different patterns occurring frequently and always having similar consequences can be transferred to automated processes. These include, for example, price calculations in trading as well as customer requests often dealing with very similar issues.
The field of Machine Learning is divided in several categories or technological approaches: Up to now, the most common variant is Supervised Learning whereby the human is necessary to teach the algorithm the correct conclusions. The most common use case for Unsupervised Learning is the so-called clustering. It is needed for creating and forming groupings in order to visualise large datasets and corresponds to a rather statistically oriented model. Learn more in our white paper.
»Artificient Intelligence can be an important preliminary stage for investment managers and give first impulses. However, in the medium term, it will not be able to replace gut instinct, experience and intuition.«
Dietmar Jakal
Managing Director
valantic Financial Services Automation
At the moment, banks are well advised to discuss Machine Learning and AI and develop an in-house strategy plan. With specific application scenarios, first selective experiments can be performed. Based on the results, a learning process develops – its target is always the added value for banks and banking customers. In fact, AI is – as all new technologies – about the relevant and effective use to make life easier for customers. Artificial Intelligence combines data analysis and aggregation with the optimisation of trading decisions and currently modifies the application landscape. The simplification of business processes, faster decision making as well as a greater customer satisfaction due to intelligent interaction are paramount. All this can be guaranteed with valantic’s solutions: the indicator platform mentor, the conversational AI platform and our solutions in cooperation with NetGuardians.
