Big banks are leveraging AI and other technologies into their operations.

The recent years have seen incredible enterprise adoption of technological developments such as AI, machine learning, big data and analytics, among others. Such technologies have significantly transformed the way organizations perform business. These solutions now are making their way into the banking arena, revolutionizing the entire aspects of banking processes. Many financial institutions plan to take control of their own technology when it comes to IT services so that they can successfully remain germane and competitive in the banking landscape.

Undoubtedly, banks have been reluctant to update their systems for years. The systems they use current are the product of years of continued innovation to meet immediate customer requirements. However, these systems are not suited well for digital age banking, where fintech startups are on the rise making the industry a competitive one.

There are a large number of technologies that are poised to disrupt banking and financial services. These include augmented reality (AR), Blockchain, RPA, Quantum Computing, AI, cloud computing, instant payments, big data analytics, and more.

Technology in Big Banking Infrastructure

Many banks still struggle to make the move from the experimentation phase of AI to scaling its capabilities across the organization. This is largely due to the lack of a clear and robust strategy, an inflexible and investment approach, fragmented data assets, and obsolete operating models that hamper collaboration between business and technology teams. According to McKinsey estimations, AI technologies could potentially deliver up to US$1 trillion of additional value each year for global baking.

On the other side, most established financial institutions are making a rapid seismic shift towards digitization using AI. Royal Bank of Canada (RBC) is one such largest bank in Canada that integrates AI into current operations and finds its role in entirely new applications. The financial services provider developed its own AI research and development center that started with some GPUs integrated by Dell, HPE, and IBM. But it quickly came to the realization that going directly to the source, like Nvidia, for the full-stack with integrated compute and networking made more sense.

In 2019, JPMorgan Chase increased its technology budget to US$11.4 billion. Prior to this, the bank was introduced a Contract Intelligence (COiN) chatbot designed to assess legal documents and excerpt vital data points and clauses in 2017. Bank of America also integrated AI technology, with the introduction of its popular chatbot, Erica, in late 2017. The financial institution made the chatbot available to Rhode Islanders, and in June 2018, it allowed all its customers to download the Erica app on the company’s website. This AI-powered chatbot typically alerts and reminds customers and flags recurring payments when they are higher than expected.

More broadly, artificial intelligence has the potential to dramatically improve the ability of financial services providers to accomplish higher profits, improved personalization, distinctive omnichannel experiences, and rapid innovation cycles.