In the mid-90s, Bill Gates said that ‘banking is necessary, banks are not.’ This sentiment has deepened among the population over the last decade, with public opinion turning against banks after the financial crisis of 2008 and technology opening up a range of new options for financial management. This has enabled startups to enter the sector at an unprecedented rate, causing a high level of disruption. Apple, Stripe, and Square are just a few of the companies revolutionizing how we pay for things, while digital currencies and peer-to-peer lenders are opening up new funding avenues for startups and SMEs. In a recent PricewaterhouseCoopers survey of more than 1,300 financial industry executives, 88% said they feared their business was at risk to standalone financial technology companies in areas such as payments, money transfers, and personal finance, and 51% said they believe they could lose as much as 40% of their revenue to standalone FinTech firms.
Did you know that artificial intelligence and machine learning could detect that it wasn’t really you who just swiped your card? That’s right, systems are being developed to flag transactions that seem fraudulent, so that banks can call up consumers and take control before the damage worsens. With everything from your refrigerator to your car going smart, banking and financial services cannot afford to lag. Before this decade ends, AI and big datawill be making radical changes to the way banks serve their customers.
From creating better customer experiences and providing personalized financial advice, to automating process and administrative work as well as lower their own internal costs, banks can benefit greatly by leveraging AI and big data. Here are some of the most interesting ways AI and Big data will transform banking in 2019.
By Daniel Gutierrez : Original article