Artificial Intelligence (AI) in Financial Services Leveraging AI - - PowerPoint PPT Presentation

Artificial Intelligence (AI) in Financial Services

Steve Njenga, CIO Barclays

Leveraging AI to Serve the Underbanked

Agenda

• The Underbanked Landscape
• What is AI
• The Opportunity
• FSI/FinTech Partnership
• FinTech Use Cases for AI
• Real World Examples
• Risks & Challenges

The Underbanked Landscape

The “Invisible” Population

Who are they?? The numbers…… +365,000,000 in Africa Potential: 1.6 billion new retail customers globally

Proliferation of Data

Processing power increasing exponentially Low-cost Android smartphone 5.7 billion mobile phone suscriptions (2016) Six in 10 global smartphone connections will come from developing regions within five years

35 billion terabytes of data by 2020

Artificial Intelligence

AI

visual perception speech recognition decision-making translation data analysis (IoT, social media, mobile phones etc.)

AI is the theory and development of computer systems that can perform tasks that normally require human intelligence

Unprofitable

Too Risky

The Argument…….

Digital Technology…… Regulatory Environment……

However…….

……. diminishes the challenges

• f profitability in serving the

“invisible” population ……. increase profits by increasing Financial Services penetration

FSI Goal……

The Opportunity

FSI/FinTech Partnership

+ve

• Niche focus
• Skills
• Agility
• Quick to market
• ve
• Reg. constraints
• Cash strapped
• Trust

+ve

• Plenty of cash
• Min Reg. constraints
• Customer base
• Trust & relationships
• ve
• Slow, lethargic
• Bureaucratic
• Skills

Partnership Instead Of Competition

……AI powered services

Visual Identification & Verification

• Leveraging capsule neural networks technology to visually

identify customers and documents

Advanced “Big Data” Analytics

• Examining data or content using sophisticated AI

techniques and tools (beyond those of traditional BI), to discover deeper insights, make predictions, or generate recommendations.

Intelligent Virtual Assistants

• Emulating human interaction: AI powered chat-bots that

can intelligently answer customer queries, effectively reducing load from customer services department.

FinTech Use Cases

• Credit scoring and fraud detection using AI
• Provide loans, insurance and transactional banking
• WhatsApp lending - instant credit by starting up a conversation with

a chatbot

• Haraka: nano loans paid in real-time into your mobile wallet.

Real World Examples

• Credit rating via AI to make loans in emerging markets
• Combining non-traditional data sources and machine learning
• Paperless and fast application processes with immediate scoring and

pay-out

Real World Examples

• Credit assessment algorithms that collect and analyze psychometric

and behavioral information

• Measure something that all borrowers have
• character, their abilities, and willingness to repay.
• Deeper and more quantitative understanding of risk by gauging

ethics, honesty, intelligence, attitudes and beliefs.

https://producttour.eflglobal.com/

• Uses AI and Deep Learning to provide you with Virtual Assistants
• True conversational language solutions
• Voice Biometrics driven through conversational language interactions

Risk & Challenges

Legacy systems Controls: ‘Do we have the internal controls?’ and ‘Do our partners have them?’ Operational complexity & Cost Partnering with third-party tech players

• pens up new vulnerabilities

New Technology = additional vectors for hacking and accessing funds