How artificial intelligence helps bankers make money – an overview

#ONPASSIVE BLOG VIDEO: How will be the Future of Artificial Intelligence in Finance

CONTENT

  • Technology has made banks better

  • In the future, new AI projects may appear on the market

  • Technology helps banks increase their income

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Representatives of financial institutions, like many companies in other areas, strive for development. Artificial intelligence turned out to be one of the tools that opened up the opportunity for them to improve their workflow and generate additional profit..

BeInCrypto editors decided to figure out how bankers use technology to develop the industry and replenish their wallets.

What is artificial intelligence

Artificial intelligence is a program that recreates the process of data analysis and decision making, similar to that of humans. The task of such an algorithm is to imitate human intelligence. At the same time, unlike humans, artificial intelligence (AI) programs can simultaneously operate on a large amount of data and process it much faster..

AI can perform various tasks: from organizing information, to analyzing images and speech recognition. The versatility of the capabilities of artificial intelligence allows the use of technology in various fields, including banking.

Research data from the analytical company SAS and the Global Association for Risk Management (GARP) showed that as of March 2019, about 81% of financial institutions in the world have used AI in their work..

Popular applications for artificial intelligence (AI) technology. Data: SAS and the Global Association for Risk Management (GARP)

Interesting fact! By the decision of the Chairman of the Government of the Russian Federation Mikhail Mishustin from the end of November 2020, artificial intelligence is included in the list of technologies that the authorities will test in the “regulatory sandbox”. This situation means that a special regulatory regime will be applied to AI in Russia..

Earlier, in February 2019, the President of the Russian Federation, Vladimir Putin, made a proposal to create a national program for the development of artificial intelligence in the country. So the technology in Russia received support at the government level..

How Russian banks use AI capabilities

Many financial institutions in Russia have used artificial intelligence in their work. One of the leaders in the area was the largest bank in the Russian Federation – Sberbank (formerly Sberbank).

The representatives of the financial organization did not limit themselves to one direction of using AI, and used the technology in various projects. Among them are the following:

  • Sberbank put AI to protect its reputation. At the end of November 2020, information appeared on the network about the purchase by the organization of a stake in the management company of the Watchout! AI startup Brand Safety. The project team is engaged in the creation of AI-based technical solutions to improve the reputation of brands on the network. The deal allowed Sber to use Watchout! AI developments to protect its name on the Internet and support clients of Sbermarketing, an advertising platform that is part of the financial institution’s ecosystem..
  • The company leverages AI to create smart chatbots. The first smart interlocutor appeared in the Sber electronic trading system – Sberbank Markets.
  • AI formed the basis for the diagnosis service for the members of the Sberra group of companies – SberZdorovya, SberMed AI and Artificial Intelligence Laboratories. So a financial organization, being a representative of a completely different profile, used artificial intelligence in medicine.

Sberbank ecosystem. Data: SberCloud

Wherein Sber’s team is confident that the use of AI will allow the company to earn about 60 billion rubles in 2020. Alexander Vedyakhin, the first deputy chairman of the board of the credit institution, spoke about this during an interview for Reuters at the end of November. For comparison, the company’s profit from AI in 2019 to 42 billion rubles.

It is noteworthy that during 2020, according to the banker, Sberbank invested 30 billion rubles in the development of AI solutions. It turns out that the financial institution team expects a double return on investment. In the future, according to Alexander Vedyakhin, the economic effect of AI can reach 350 billion rubles.

Each 15 rubles invested in the development of artificial intelligence technologies, according to the banker, brings the organization 100 rubles of additional income.

Alexander Vedyakhin noted that Sber plans to use AI in all the company’s products. As of the end of November 2020, according to him, the share of technology integration into the organization’s projects was about 30-40%.

At the same time, the banker drew attention to the fact that Sberbank uses the experience of such companies as Amazon and Google in the development of this direction. The latter are also actively integrating artificial intelligence technologies into their projects..

How else financial institutions in the Russian Federation use AI

Sberbank is not the only financial institution whose team has used the capabilities of artificial intelligence in its work. Other Russian banks are also actively using the technology. A few examples:

How artificial intelligence helps bankers make money - an overview
  • Sovcombank used AI solutions to automate the collection service and call center. The company plans to use the capabilities of AI to find and hire new employees.
  • Tinkoff Bank has used AI capabilities to train the cashback system. Now she knows how to anticipate the desires of the organization’s clients.
  • At Alfa Bank, artificial intelligence helps analyze the calls of call center operators. This approach allowed the company to improve the quality of service..

How AI & Machine Learning will Transform Banking & Finance Industry | AI-ML Training | Edureka

Public financial institutions are also leveraging the power of AI. For example, in March 2019, Rosfinmonitoring began developing a technical solution based on artificial intelligence to combat money laundering..

The consequences of using AI in the financial market

Financial institutions have different requirements for AI. The expectations of bank representatives from the introduction of technology into work processes can vary significantly. The fact is that the result largely depends on the nuances of a particular project in which AI was included. Despite this, a number of popular points can be distinguished from the expectations of bankers from AI. Here are a few of them:

  • Improving the efficiency of the company. This point, according to the deputy chairman of the board of Sber Alexander Vedyakhin, became the basis for the organization’s choice of a development path based on AI. Changes, among other things, can be achieved by automating a number of actions. The exclusion of the risks associated with the human factor from the process can also positively affect the quality of the company’s work..
  • Accelerating data processing. Such expectations from the use of AI, according to research by the analytical company SAS and the Global Association for Risk Management (GARP), are presented by 95% of market participants.
  • Improving data analysis capabilities. Rosfinmonitoring analysts believe that with the help of AI, among other things, it is possible to partially de-anonymize operations with cryptocurrencies. For this, the department’s team in August 2020 proposed to include AI in the “Transparent Blockchain” project..
  • Reducing costs while maintaining quality of service. Such changes were noted by Dmitry Gusev, Chairman of the Board of Sovcombank PJSC.

How Will AI Transform Banking?

Possibilities to reduce costs in the market of financial organizations, the investment market and in the insurance sector. Data: Autonomous Next

Also, artificial intelligence technologies can improve the existing services of financial institutions. For example, the Sberbank chatbot clearly needs to improve its capabilities..

An example of accessing the Sberbank chatbot in the Sberbank.Online application

Summing up

Artificial intelligence is a multifaceted technology that can be deployed in different ways, depending on the specifics of the project. At the same time, in the overwhelming majority of descriptions of the practical application of AI in practice, the results are positive. To other conclusions:

  • Bankers are using AI not only to improve efficiency but also to increase revenue. This can explain their desire to use the capabilities of AI in as many projects as possible..
  • In the future, the financial market expects the growth of technical solutions based on artificial intelligence technology.
  • AI is also studied and used at the state level.

It is also worth noting that the banking sector is far from the only application for AI..

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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How artificial intelligence helps bankers make money - an overview
How artificial intelligence helps bankers make money - an overview
How artificial intelligence helps bankers make money - an overview