The continued push into new technologies by the banking sector in the U.S. has been highlighted in a new report from KPMG. The report found 80 percent of U.S. banking CEOs are increasing investments in digital transformation processes. The main driver for this is because most CEOs believe they are not effectively leveraging digital channels to connect with customers.
In terms of the types of technologies that feature high on the list, KPMG’s 2017 U.S. CEO Outlook study found that robotic process automation, cognitive technologies, and data and analytics are leading the way.
Robotic process automation
Robotic process automation refers to the application of logic driven robots to execute pre-programmed rules for the review of structured and some unstructured financial data. With machine learning progressing, many robots can learn from prior decisions and data patterns to make recommendations.
The appeal to the banking sector is to reduce costs, provide faster services, and to address complex regulatory issues. The application of robots also aids 24/7 operations.
Cognitive technologies
Cognitive banking is about using machine learning and artificial intelligence to leverage unstructured data collected from customer emails and social media to better develop a personalized service focused on customizer engagement customers. Such technologies are also employed to build brand loyalty.
An example of where data can be captured from includes advanced chatbox technology. Many banks, according to IBM, are adopting this to provide customers with personalized and specific services. Behind this is an artificial intelligence driven platform that can engage in “human-like” conversations.
Banking data and analytics
Banks rely more and more on data reviews to develop future strategy. One term for this is ‘Code Halos’ which is the information that relates to people, organizations, and devices. This is about how each digital click, swipe, “like,” buy, comment, and search produces a virtual identity. Reported by the Harvard Business Review, JPMorgan Chase & Co. used this process recently when they analyzed 12.4 billion debit and credit card transactions. This process revealed a shift downwards in the growth of everyday consumer spending from 2014 to 2015 and this knowledge allowed the bank to redefine its future strategies and offerings.
As an example of the technological upgrades on offer Eagle Investment Systems LLC, which provides financial services technology, has recently announced it has released a next-generation portfolio management suite of data management, investment accounting and performance measurement software for investment companies. The new offering utilizes cloud computing.
The KPMG report also highlighted some barriers to implementation, signaling why digital technology is not being adopted rapidly by all banking service providers. These were reported by the survey respondents to be the complexity of implementation (31 percent) and a lack of available budget (25 percent).
