In a report from Forrester Research, it is explained that the future of financial services will require industry leaders to 'focus on digital business reinvention delivered as application programming interfaces (APIs), and partner with FinTechs to create new ways to engage customers'. These updates and transformations will range vastly from some companies launching mobile payment apps, to tackling complex consumer journeys 'such as mortgage applications and insurance claims, and incorporate predictive analytics into more intelligent personalized product advisors.'
By 2030, it's estimated that 'financial services will cease to exist as we know it. They will be replaced by self-determining, intelligent, distributed, Peer to Peer value exchange services. By 2030, incumbent financial institution employment will have fallen by 75%, while the addressable market will have increased by 50 %.' IoT, AI and Blockchain will be paramount for the financial sector, and even today they are becoming more and more mainstream.
This September 6 - 7 in New York, RE•WORK's AI in Finance Summit will explore this topic and cover the latest advances in AI and Machine Learning tools and techniques from the world’s leading innovators across industry, research, and the financial sector. New speakers announced include Mark R. Weber, Researcher, MIT-IBM Watson AI Lab: Discussing Frameworks for applied AI research in Finance, Manuela Veloso, Head of AI Research, J.P. Morgan Chase: Sharing Insights in AI and Finance, Éric Charton, Senior AI Director, National Bank of Canada: Exploring Robustness Challenge with Dialog Systems, Myths and Solutions and many more.
Here's what you've missed in AI & Finance in the news:
Crowd2Fund says that following the introduction of Smart-Invest two years ago around 20 per cent of its investors have used the feature. The firm says Smart-Invest also offers similarly attractive returns to individual investing, currently sitting at an APR of 10.24 per cent. "Smart-Invest is aimed at retail investors looking to maximise their return on investment and their financial goals.”
The financial services sector is currently leading on AI investments, with the emphasis on real-time transaction analysis and smart fraud detection through to algorithmic trading and AI-managed funds. Banks and financial institutions are beginning to see the inherent potential of AI, especially when it comes to attracting new business by delivering better, more personalised customer services.
"The visual capabilities of graph analytics are ideal for monitoring, categorizing, and predicting threats to maximize prevention efforts. Graph techniques such as cluster analytics enable fraud management teams to visualize the distribution and acuteness of specific actors or fraud instances." Supplementing this approach with AI, however, provides the pivotal difference between merely monitoring fraud and impeding it.
In an announcement [on Tuesday, the GMO Internet Group confirmed the launch of the GMO Aozora Net Bank in partnership with Aozora Bank Group, a joint-initiative that has been in preparation since July 2016 that will leverage the use of blockchain, artificial intelligence and Internet of Things to provide new financial services through financial technologies.
Healthcare is in the midst of a financial shift: value-based care is rising to the fore and hospitals simply have to share more of the financial risk. That means financial information systems must adapt to the new environment. Experts in financial IT have a wide variety of ideas on where the next generation of features and functions will manifest.