Intelligent automation and the future of finance

Artificial Intelligence (AI) is likely to provide opportunities to deliver smarter solutions for end users and transform the banks processing capabilities. Last week, UBS invited leaders and experts from the financial industry, fintechs, academia and regulators come together to discuss the future of Intelligent Automation and start to build a common understanding of what a successful approach would look like. I had the pleasure of attending this event and we explored the most relevant issues covering where, when and how this will happen.

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Open banking: An introduction

The landscape for financial services is changing, and the jury is still out on how the endgame is going to play out. One of the concepts shaping this future is open banking. This development emerge out of the payment area where a perfect storm of shifting customer behavior, regulatory changes, the threat from digital ecosystems such as Google, Apple, Facebook and Amazon, and the quest for new business models are driving banks toward the open banking paradigm.

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Will the rise of Robo-advice change wealth management for good?

The concept of robo-advice – the use of automation, investment algorithms and an online interface to build and manage portfolios of exchange-traded funds (ETFs) and other instruments for investors – has gained significant attention within the wealth management industry. Is this pure hype or is there a chance robo-advisers will profoundly alter the existing business models by changing the way investors seek exposure and even how portfolio managers manage their funds and discretionary mandates? Will robo-advise do the same for production as mobile did for distribution in wealth management?

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How AI will reshape everyday banking

The greatest fear for banks in the changing landscape of financial services is to lose grasp of the customer relationship and become utility commodity providers, or “dumb pipes”. This fear is strengthen by changes in consumer behavior and expectations, regulatory changes such as PSD2, new business models and new technology. Artificial intelligence is one of the technological paradigms that is set to transform financial services in the years to come.

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The potential benefits of artificial intelligence in the compliance function

Artificial intelligence is one of the technological paradigms that is set to transform financial services in the years to come. This includes every aspect of the bank, ranging from customer interaction through chatbots, process automation and risk and credit assessment just to name a few. However, the compliance function is one of the areas where AI will have a profound impact on banking.

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Core banking – fintech’s final frontier

If it ain’t broke, don’t fix it. This idiom has acted as a rule of thumb for core banking solution for several years. While analysts has claimed repeatedly that legacy IT is slowing incumbents down, the existing and sometime ancient core banking systems still work flawlessly. Although, even if something works an upgrade is due when the world around is moving at an increasingly rapid pace.

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Are challenger banks a challenge for incumbent banks?

Will challenger banks lead to a revolution in digital banking or are they merely digital lipstick? Banking as a platform is an inevitable scenario and clever use of technology will most likely change the face of retail banking where user experience and simplicity is integral. Challenger banks with an app-only presence are not limited to the constraints of traditional online and mobile banking interfaces in the same way direct banks benefited from not having any branches 15 years ago.

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PSD2 – opportunities, threats and strategic options for banks

As I have described in previous posts, PSD2 will force banks to open up their infrastructure to third parties by offering APIs under the XS2A (access to account) rule. The directive has the potential to fundamentally alter the payment landscape as we know it. One of the reasons why PSD2 will have such a large impact is that it will level the playing field and increase competition by integrating the role of new and emerging payment services into the regulation. While incumbents have the most to lose, there are also opportunities ahead for banks.

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A short introduction to PSD2

The coming payment service directive from the European Commission marks a shift in banking regulations. Instead of prohibitions and limitations, the overall purpose of PSD 2 is to create an even playing field and encourage innovation in the payment space as a part of SEPA (Single Euro Payment Area). Although all the technical details is yet to be sorted out, the directive states that banks need to offer payment APIs to third party-providers of financial services, also known as TPPs (Third Party Provider) under the XS2A (Access to account) rule.

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What we learned about the transformation of Consumer Banking from 5 Pirates with Ties interviews

This post is a rePress from the summary of dailyfintech.com interview series, Pirates with Ties.

One of the things that makes this job so much fun is the ability to talk to the really smart people in a dynamic market. Doing a startup is hard; we are entrepreneurs ourselves so we get that. However we want to counter the myth that all innovation comes from VC funded startups. To do that we need to find real innovation that has had an impact (not just “innovation by press release” about experiments) and then find people within established financial institutions who are willing to talk about on the public record.

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