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.”

    Share Story:

Recent Stories

New Business Frontiers
FStech’s Mark Evans discusses the future of financial services with Liu Jianning of Huawei, covering the limitations that current thinking can impose, how financial institutions can embrace technology to be both agile and resilient, and making space for the organisation to focus on the job of creating innovative business models and on delivering business value for their customers.

The Future of Intelligent Finance
FStech Group Editor Mark Evans sits down with Jason Cao, President of Global Financial Services Business Unit, Enterprise BG at Huawei ahead of its Intelligent Finance Summit which was held on 3rd and 4th of June in Shanghai. This Q&A delves into key trends in digital transformation of the financial services industry as well as a look at how data, robotic infrastructure, intelligent storage and innovative technologies are shaping the future for FSIs.

Cracking down on fraud
In this webinar a panel of expert speakers explored the ways in which high-volume PSPs and FinTechs are preventing fraud while providing a seamless customer experience.