Banking data is probably one of the most reliable and complete among industries because of its nature. But meanwhile, they are more conservative about applying ML or adopting AI-involved solutions.

Here are some core innovation pathways that may be potentially leveraged in incorporating AI into their digitization framework:

- AI& Cloud serve as the gateway to other emerging technologies
AR/ VR allows for new data-rich channels for engaging customers and employees
- IoT, Task-specific hardware create links between physical information and financial processes
- Privacy enhancing techniques eliminate the need for data to be physically transferred for it to be analyzed by a third party
- Distributed ledger technology can enable more direct, atomic transfers of value and information
- Quantum computing will unlock new analytical capabilities

Innovation needs to come with a rigorous regulation system. Innovation barriers, competitive structures, operating models, and systemic challenges…are all the parts that need to be considered.

It seems at this stage, many financial institutions are still trying to ‘catch up’ to innovations that have been applied in other industries. And most banks remain uncertain of where to place the new technologies. (Deloitte report in 2021, ‘AI: Transforming the future of banking’)

Any interesting thoughts on this topic? Please leave it in the comments, would love to hear from you!

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Image credit to McKinsey&Company, edited by Panagiotis Kriaris

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