Banks bet on AI to win back regulator, consumer trust
International tech behemoth IBM is expecting a significant boost to its Watson Financial Services division in Australia, with the big four banks turning to artificial intelligence in its IT systems to win back the trust of consumers in the wake of the Hayne royal commission and years of banking scandals.
Speaking to The Australian Financial Review from his Astor Place office in New York, IBM vice-president of Watson Financial Services, Marc Andrews, said it was already conducting trials with most of the major banks in the country using its cognitive computer Watson for everything from reducing the strain of regulatory compliance, to overhauling the way the banks detect financial crimes.
“The royal commission will do two things – it will create heightened interest in being able to demonstrate back to the royal commission that the banks are doing something about these issues and that they’re looking to address them, and it might also reset some of their priorities,” Mr Andrews said.
“The banks have to be responsive and make sure they’re addressing any known issues.” It is believed that NAB is running trials of Watson in the regulatory compliance space, while Westpac confirmed it was testing artificial intelligence technologies to support bankers in its consumer bank and the Commonwealth Bank head of emerging technology Dilan Rajasingham said AI was helping banks identify trends in data faster than ever before.
“Any emerging technology goes through a process of prototyping and validation,” Mr Rajasingham said.”We’re focused on the simplification of processes and providing greater and more proactive insight. We’re working with an array of solutions from start-up technology to quantum computing.”
“As AI moves from nascent technology to being more prevalent, the best way to increase its adoption is through partnerships. We’re partnering with other organisations because we know that for innovation to thrive, there must be collaboration between entrepreneurs, businesses, research institutions and governments.”
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Source: Banks bet on AI to win back regulator, consumer trust | afr.com
