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[Music] hi everyone good afternoon I'm Deepa and I cover AI at CBN sites or the next ten minutes I want to walk you through some of the ways in which banks can start leveraging AI today but if there's one thing I'd like you to take away from this presentation whether or not you work at a bank is to understand your organization's risk tolerance to understand your own unique needs and pick your vendors or AI projects accordingly because there are a lot of options out there and to just give you an idea of how saturated the saturated the market is close to 3300 companies have raised equity for the Fabri secretary to either provide software as a service or AI enabled products in the market and 20 billion in funding last year alone that's more than seven times growth in the last five years in 2012 and 13 we saw very few companies even discussing machine learning and a lot of them were big tech companies that already had projects going on but today every major pharma company agriculture cybersecurity credit bureaus everyone's talking about AI but just because you're talking about AI doesn't mean you have an efficient implementation strategy in place and that is something we are seeing in banking today here's a quote from the CEO of Capital One where he says consumers will demand it technology competition will necessitate but the challenges banks aren't built to deliver those capabilities if we think about why that is a couple of reasons come to mind but to that I would like to highlight our outdated IT infrastructure so within the same banking department you have systems that don't share data or communicate with each other and the second is hype driven goal setting which is a problem across industries when it comes to AI because the night of around AI is so polarizing it's either the magic bullet that's gonna solve everything or it's gonna put us out of our jobs that larger corporations have trouble wrapping their head around what AI can really do and what it today so this is something that happened with big data as well in 2012 and 13 everyone started talking about big data but very few people knew what kind of data sets they needed and how to monetize on it and slowly that started dying away only to be replaced with AI but three reasons why banks need to turn this around and have an efficient AI implementation strategy is if you don't do it someone else is going to do it as a bank you're not just competing with other banks today but also with big tech companies and fintax who already have an established relationship with highly tech savvy customers so if you want to stay relevant and competitive if you want to provide personalized experiences to your customers and if you want to improve your margins you need AI but this is the why but how do you go about implementing AI if you are in charge of initiating an AI project within your department where do you start here are just a few examples that I could think of a are solutions that are relevant to banking and it's overwhelming and this is not even it when we talk to clients one thing they're interested in knowing is what are companies and other industry is doing with similar technologies and another thing that comes across is within the same industry different clients have different needs at this time so if we look at this on a framework where the y-axis is need maturity do you have a business need for this today and the x-axis is tech matteri can this technology solve this problem for you today and if you take all of these applications and plot them on this 2x2 this is where they land we find that a lot of banks go after emerging niche applications where there is no established process within bank banking departments yet well this is great for companies that have the infrastructure to invest in emerging tech and to in riskier technologies it may not be the best solution for every company of every size today I want to highlight three applications where there's already an established need with banks and where the technology has already started providing some value to customers so how can banks start winning with AI today the first one is location intelligence vendors who sell location intelligence essentially collect your data on where you've been where you're going your purchasing patterns and this is nothing new for banks they've been partnering with vendors here for decades now to decide where to open new branches or for merger and consolidation decisions but what's changing is the depth of analysis that you can do with AI for example what's the projected revenue from opening a branch and location X versus Y how can you group your prospects and customers into subgroups based on hidden patterns so that you can launch targeted marketing campaigns so it's not reinventing the wheel but leveraging the tools that you already have because you're SAS vendors have started upgrading their technology on their end to integrate deep learning into their workflows here's some partnerships that have come up in the last couple of years and Lync is one thing I wanted to highlight it's a platform developed by Bank Colombia and they're not only using it internally for their business intelligence purposes but selling this to third-party merchants as a value-added service the second application is personal finance management and this is a great example of how if you don't do it someone else is going to come in and do it consumers really want banks to take an active role in their financial well-being and a number of FinTech companies started offering advisory services in real time on a daily basis before banks caught on and so now every major bank has a personal finance management app and at this point it's pretty much table stakes this is just a survey reiterating what I just said two of the top five things consumers wanted most from their banks were wealth building advice and personal finance management advice one existing data set data said that banks can leverage its transaction data so not just looking at historically what happened but being able to tell customers what they're spending is gonna look like the end of the month in specific categories and building off off of this being able to give advisory services on what they should do based on what you projected and finally auto saving is a feature that are already seeing so based on your projection I'm gonna move 30 dollars automatically into your savings account an interesting example is Goldman Sachs which made a huge pivot in its business model by entering consumer banking and they've really scaled through acquisitions last year they acquired a pfm app called clarity money and this gave them access to 1 million users and the app is still open to non goldman sachs customers so this increases their brand visibility this allows them to see spending patterns on a macro level not just for their clients but a larger section section of the population and it's a great way to engage prospective and current customers these are more on the customer retention and engagement side but internally if I pick one thing that's most important for banks today is being able to automate anti money laundering and qic compliance procedures banks are paying hefty non-compliance fees we see this very often in the news and the reason for that is finding fraudulent activity or even verifying someone's identity across an international database is like finding a needle in a haystack and vendors here are starting to provide end-to-end solutions some of these processes within AML and kyc are more automated than others but we're already seeing banks start to partner with offenders who are able to provide these solutions going back to our framework B I just highlight a tree where there was already a high need within banking but depending on where your organization is right now you may want to pick an AI strategy that is right for you if you want to expect with the technology that's taken off in another industry and understand how it's applicable to banking or understand what some of your competitors are doing and be happy to chat with you about it you can find me on Brella or I'll be in the networking area today I'm also going to leave you with some additional research that you can find on our blog research portals so some of it is upcoming some of it is already available so thank you for your time and I hope you enjoy the rest of the conference [Applause]