85% of banking IT execs have clear AI strategy

The vast majority – 85 per cent – of European IT executives in banking have a “clear strategy” for adopting AI in the development of new products and services, according to research.

A report from cloud banking platform Temenos and the Economist Intelligence Unit (EIU), found that 81 per cent of banking IT execs agree that unlocking the value of AI will “separate the winners from losers”.

78 per cent said that incorporating AI into their organisation’s products and service will help them achieve their businesses priorities, with 46 per cent saying it will do this to a great extent.

A further 62 per cent said that the complexity and risks associated with handling personal data for AI projects often outweigh the benefits to customer experience.

The study suggests that currently banks are using AI most heavily in fraud detection, with 58 per cent using the technology significantly in this environment and 32 per cent saying they are using it to at least some extent in this space.

“As AI becomes mainstream, banks need to establish a set of processes that provide transparency into the logic behind the decisions made by machine learning algorithms,” said Hani Hagras, chief science officer, Temenos. “For example, AI is used in BNPL to assess applicants’ affordability and risk, both quickly and effectively, analysing data to perform soft credit checks and affordability assessments.”

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