You’ve already adopted AI advancements…you just didn’t know it

You’ve already adopted AI advancements…you just didn’t know it

You’ve already adopted AI advancements…you just didn’t know it

By April 9, 2018 Data Science No Comments

You’ve already adopted AI advancements…you just didn’t know it

By April 9, 2018 Data Science No Comments

An evolution in process and customer service is underway thanks to advancements in machine intelligence. Many manually performed processes using variables and consistent logic can be augmented or completely performed through automation advanced techniques and machine intelligence.

To illustrate this advancement, how often do you go into a bank monthly? Compare that to the number of times your grandparents went into a bank monthly. Now, how often will your grandchildren need to go into a bank? The introduction of the ATM, online and mobile banking, AI powered data transactions and other technological advance

s have led to a decrease in the need to physically go into a bank. This evolution started based on data and in half a century has progressed to the point that brick and mortar banks may not be needed in the future.

For instance, in the 1950’s if you needed a loan you would go to your bank and meet with your loan officer who probably knew you personally. They knew your status in the community, where you worked and the type of person you were. They used this information to gauge your trustworthiness to pay back a loan. There was no credit scoring or account database. There was only your signature, your loan officer’s opinion and your debt to income ratio factoring into your loan.

Financial institutions realized in the 1960’s that tellers largely fielded the same inquiries and transactions repeatedly. What’s my balance? Can I get money out of my account? Can I open an account? Can I put money into my account? Using transactional automation, authentication methods and standardized data, the banks were able to streamline their operations and enable their tellers to do much more. By offloading a majority of the standard tasks to automated teller machines the banks freed up resources to process more loans, compile more data and focus on investment and other avenues of revenue for the bank.

As a result of the massive amount of data compiled for every account holder as we moved forward in banking and the algorithms created to determine creditworthiness through FICO, Vantage and other means we began to rely on a faster, more scalable and less prone to human error banking system. This is where machine intelligence began to factor in. For example, the stock exchange has morphed into a less human floor. The days of the sea of stock traders waving their arms frantically to trade are gone. Now, the majority of stock trades are made through advanced algorithms and machine variable thresholds. Stock trading is one aspect of the financial sector that can now be fully automated. This is due to the embracement of automation, machine intelligence, advanced algorithms and cognitive computing.

So, smile warmly at the teller the next time you go into your bank. Their legacy will live on through the technology that performs their function, but banking will be and is now driven by technology that has evolved through process refinement, automation, data analytics and machine intelligenc