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Bankers says AI will be your newest coworker

Accenture’s new Banking Technology Vision 2018 report shows that many banks have not invested in capabilities to verify the validity and accuracy of their data. The consequence means that this could make banks vulnerable to false business insights and also to drive bad business decisions.

The report surveyed nearly 800 bankers, and it noted that 84 percent of the respondents indicated they are increasingly using data for automated decision-making. This is amid strong concerns that automated systems can create new risks to the finance sector, such as fake data, external data manipulation and inherent bias.

Security concerns

With the data security concerns, while banks have always held a large volume of confidential data, technological changes mean that banks are increasingly adding data from external, unstructured sources. The survey found some trends that bankers need to take note of.

For example, around half of the bankers surveyed are not undertaking enough measures to validate and ensure data quality. Just 11 percent said they trust that their data is reliable and do not validate it. Furthermore, 16 percent said that they attempt to validate their data, but they are uncertain of the quality of the data. Moreover, 24 percent said they do validate the data, however they recognize they need to do more in order to ensure data quality.

According to Alan McIntyre, senior managing director and head of Accenture’s banking practice: “Inaccurate, unverified data will make banks vulnerable to false business insights that drive bad decisions. Banks can address this vulnerability by verifying the history of data from its origin onward — understanding the context of the data and how it is being used — and by securing and maintaining the data. Given that four in five bankers that we surveyed said they are basing their most critical systems and strategies on data, it’s critical that the data can be verified and validated.”

The rise of artificial intelligence

The 2018 report also showcased five emerging trends for the banking sector to be concerned with. These were: data veracity, artificial intelligence, blockchain and smart contracts, extended reality solutions and Internet of Things. Each of these emergent technologies is set to shape the banking sector over the next three years.

Of these emergent technologies, the one that sparks the most interest with the bankers polled was artificial intelligence. The poll found that 79 percent of the financiers surveyed were of the view that that artificial intelligence will work alongside humans as collaborators within the next two years.

There is a residual concern, however,with a number expressing the view that decisions will be made by artificial intelligence need to be carefully evaluated as the technology advances, especially in ensuring that such decisions adhere to regulatory and ethical frameworks which govern banking in different countries.

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Written By

Dr. Tim Sandle is Digital Journal's Editor-at-Large for science news. Tim specializes in science, technology, environmental, business, and health journalism. He is additionally a practising microbiologist; and an author. He is also interested in history, politics and current affairs.

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