Dear,
As the Financial System passes the transition period; from a model based in Volume to a model based in efficient Management of Capital, Banks are pushed by two main forces; cost reduction and innovation.
Some weeks ago, we could read that Bank of America has opened several branches without employees.
http://www.reuters.com/article/us-bank-of-america-idUSKBN15M2DY
This is just the beginning, as technology evolves, new IT-supported interaction channels between banks and clients will be implemented, reducing costs and improving efficiency.
One of the most innovative technologies are the Financial Chatbots, computer systems capable of conducting conversations via auditory or textual methods.
Financial Chatbots have existed for more than 20 years, but new computing capabilities have brought a new concept on conversational interaction with computers .
While traditional Chatbots were based on a set of rules, taking actions and giving advises by selecting options in an predetermined decision tree; newest Financial Chatbots support their decisions in Artificial Intelligence algorithms.
- Financial Chatbots based on rules provide limited functionalities, offering answers and questions according to sets and sequences of deterministic rules.
- Financial Chatbots supported by Neural Networks understand the context of the conversation, and learn from conversations they have with people.
What do Financial Chatbots represent in the Technological Architecture of a Bank’s Information System.
Financial Chatbots, in combination with the development of other interaction technologies, offer a great potential of cost reduction and customer service. But the limits of this technology will be determined, not by doing the same activities automatically, but by facilitating new value propositions.
The best example is Google, which just two years ago, introduced a new system for generating responses to search queries, with the self-learning capacities of the Artificial Intelligence; replacing the search engine algorithm that made the company successful.
https://www.bloomberg.com/news/articles/2015-10-26/google-turning-its-lucrative-web-search-over-to-ai-machines
The key word is relevancy; Bank’s will only take advantage of the full potential of their Artificial Intelligence initiatives, if their information systems are capable of capturing, storing and managing all the relevant data.
This is a serious challenge, as banks information systems are supported by Silo style Information Systems; poorly integrated, and with limited capacity of crossing information by processes, products, requirements, client’s profile, etc.
Lifting this limitation requires:
- An integrated data-model, capable of providing relevant data that the Analytical Information System can process, feeding the Artificial Intelligence System.
- A High Performance Predictive Technology supporting the learning process of the the Artificial Intelligence System.
SAP Banking provides the technological architecture for tackling both requirements:
- An integrated data-model, including client’s experience, holistic business partner description, operational processes, solvency, profitability and accounting.
- The SAP HANA Predictive Analysis Library for supporting Artificial Intelligence developments.
With this two technological pillars, SAP Banking can provide the foundation of a new generation of “Smart Banks”; taking advantage of the he Artificial Intelligence revolution, not only in client interaction, but in most of the bank’s core activities.
For instance, recently, we’ve participated in a research initiative for evaluating the potential of the Neural Networks in solving Capital Adequacy Requirements simulations.
Imagine the potential of translating the result of these simulations in marketing campaigns, private banking activities or risk mitigation initiatives.
We’re just at the beginning of the Artificial Intelligence revolution, we’ll look at other examples of this revolution in a future blog.
Looking forward to read your opinions.
Join the SAP Banking Group at: http://www.linkedin.com/e/gis/92860
Visit my SAP Banking Blog at: http://sapbank.blogspot.com/
Let's connect on Twitter: @FerranFrancesGi
Kind Regards,
Ferran Frances.
As the Financial System passes the transition period; from a model based in Volume to a model based in efficient Management of Capital, Banks are pushed by two main forces; cost reduction and innovation.
Some weeks ago, we could read that Bank of America has opened several branches without employees.
http://www.reuters.com/article/us-bank-of-america-idUSKBN15M2DY
This is just the beginning, as technology evolves, new IT-supported interaction channels between banks and clients will be implemented, reducing costs and improving efficiency.
One of the most innovative technologies are the Financial Chatbots, computer systems capable of conducting conversations via auditory or textual methods.
Financial Chatbots have existed for more than 20 years, but new computing capabilities have brought a new concept on conversational interaction with computers .
While traditional Chatbots were based on a set of rules, taking actions and giving advises by selecting options in an predetermined decision tree; newest Financial Chatbots support their decisions in Artificial Intelligence algorithms.
- Financial Chatbots based on rules provide limited functionalities, offering answers and questions according to sets and sequences of deterministic rules.
- Financial Chatbots supported by Neural Networks understand the context of the conversation, and learn from conversations they have with people.
What do Financial Chatbots represent in the Technological Architecture of a Bank’s Information System.
Financial Chatbots, in combination with the development of other interaction technologies, offer a great potential of cost reduction and customer service. But the limits of this technology will be determined, not by doing the same activities automatically, but by facilitating new value propositions.
The best example is Google, which just two years ago, introduced a new system for generating responses to search queries, with the self-learning capacities of the Artificial Intelligence; replacing the search engine algorithm that made the company successful.
https://www.bloomberg.com/news/articles/2015-10-26/google-turning-its-lucrative-web-search-over-to-ai-machines
The key word is relevancy; Bank’s will only take advantage of the full potential of their Artificial Intelligence initiatives, if their information systems are capable of capturing, storing and managing all the relevant data.
This is a serious challenge, as banks information systems are supported by Silo style Information Systems; poorly integrated, and with limited capacity of crossing information by processes, products, requirements, client’s profile, etc.
Lifting this limitation requires:
- An integrated data-model, capable of providing relevant data that the Analytical Information System can process, feeding the Artificial Intelligence System.
- A High Performance Predictive Technology supporting the learning process of the the Artificial Intelligence System.
SAP Banking provides the technological architecture for tackling both requirements:
- An integrated data-model, including client’s experience, holistic business partner description, operational processes, solvency, profitability and accounting.
- The SAP HANA Predictive Analysis Library for supporting Artificial Intelligence developments.
With this two technological pillars, SAP Banking can provide the foundation of a new generation of “Smart Banks”; taking advantage of the he Artificial Intelligence revolution, not only in client interaction, but in most of the bank’s core activities.
For instance, recently, we’ve participated in a research initiative for evaluating the potential of the Neural Networks in solving Capital Adequacy Requirements simulations.
Imagine the potential of translating the result of these simulations in marketing campaigns, private banking activities or risk mitigation initiatives.
We’re just at the beginning of the Artificial Intelligence revolution, we’ll look at other examples of this revolution in a future blog.
Looking forward to read your opinions.
Join the SAP Banking Group at: http://www.linkedin.com/e/gis/92860
Visit my SAP Banking Blog at: http://sapbank.blogspot.com/
Let's connect on Twitter: @FerranFrancesGi
Kind Regards,
Ferran Frances.
