CFTE continues its series of deep dives into AI in Finance, looking at how financial services must consider new age solutions, ethical dilemmas, market structure and talent as a result of these changes.
According to a Deloitte report published in 2018, artificial intelligence in finance is changing how banks attract and retain customers and offers the chance for “significant market innovation”. However, this has already been demonstrated through the success of Fintech startups the world over, with their services and products offering value to customers lured away from traditional financial institutions. It is only now that banks are beginning to catch up.
The keys to attracting customers include service customisation to their specific financial needs, engagement through continuous, integrated interactions that go beyond the service they need, and curated ecosystems built on the data from consumers, corporates and third parties. These value-added aspects have allowed Fintechs to carve out a slice of the market, and with financial institutions beginning to implement this into their services, this allows them to compete.
For financial institutions, AI helps to bridge the gap between improved service and cost which brings about several implications. Firstly, they must focus on delivering exactly what consumers want and look out for opportunities to improve their day-to-day life – key to this is the willingness to experiment in product development, with incumbents expected to adopt new ways of working and skill sets among the workforce.
Jason Mars of Clinc espouses this view in the CFTE AI in Finance course, saying that it is “urgent to learn about AI now” because market expectation demands it and that incumbents must be “educated on how to deliver the value that AI has to offer”.
In this respect, Fintech firms already have a distinct advantage as they have been attracting customers away for years, as mentioned earlier. The implementation of AI means they can offer free products and services that are innovative, capturing data in the process which can be used to further tweak their offerings to make it even more attractive.
About the AI in Finance programme
The CFTE AI in Finance course has been developed in partnership with Ngee Ann Polytechnic, a leading institute of higher learning in Singapore and features high-quality content taught by five senior lecturers and 18 industry experts.
With an easy to follow format, the course is perfect for busy professionals to understand the technologies behind AI and machine learning that are disrupting finance.
These series of articles is based on the Deloitte report titled “The new physics of financial services | How artificial intelligence is transforming the financial ecosystem” released in 2018. Click here to download the full report.
We are a platform supported by senior leaders from the largest institutions, startups and universities. We address the needs of professionals in finance to upskill in a rapidly changing industry being transformed by emerging technologies. More than 50,000 participants learn from our online courses, such as AI in Finance, Fintech Foundation or Extrapreneurship, a mini-MBA with fast growing startups such as Revolut or Shift Technology.
Cover image from futureoflife.org
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