Based on the past two decades, virtual reality has been the type of technology always appears to have a bright future.
Although virtual reality (VR) developers have looked for new applications for the technology beyond entertainment and gaming, its advancement has been mostly limited to simulation and training situations.
However, all that changed with the emergence of artificial intelligence and big data, as now we do not talk about either virtual reality or augmented reality, but instead we talk about extended reality(ER)
The combination of artificial intelligence with VR appears to be one of the most interesting examples of extended reality.
Integrating VR together with particular forms of AI like machine learning, natural language processing, and robotics among others, brings about an extended reality whereby participants not only become part of an ecosystem but also interact with and break down data within their real-world’s field of view.
To understand how extended reality functions, look at Hollywood films like Iron Man and Minority Report, where the characters involved live in and interact with data instead of just evaluating it.
Nonetheless, the similar technology used by the special effects departments in the movie industry could be applied directly to front offices and compliance departments of financial institutions.
The financial services industry appears to be lagging behind other industries like automotive, retailing and fashion in leveraging extended reality’s potential.
Whereas most compliance departments in the financial services industry are currently utilizing AI to shape their compliance function while some are considering to use VR for training purposes, only a minority of them have not merged the two technologies.
Extended reality could assist financial services in tackling the challenges of cybersecurity, risk management, and regulatory compliance by allowing individuals to be joined to the system.
For instance, they can click or walk through a 3D setting, which represents the outcomes of augmented surveillance of employee chats, calls and emails.
The extended reality(ER) environment helps in showing suspect relationships and potential problems instead of going through piles of data in a conventional manner for probable violations.
Look at a hypothetical case of a trader who takes part in a transaction comprising a leading consumer products entity.
Doing so may cause current systems to flag the transaction as an irregularity since the trader mostly limits his trade to the energy sector.
This situation commences the process for a compliance officer who has to search other records in a bid to determine the scope and size of the problem at hand.
Unlike the current systems, extended reality tools are able to identify numerous things instantly including the trader, everyone he has been in contact with, and all the trades conducted in recent years among others.
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Consequently, all these cases are displayed in a graphic format, which makes it easy to identify anomalies.
In another scenario, imagine that the trader was in London and that the consumer products firm was listed on the New York Stock Exchange (NYSE).
This situation would cause compliance officers operating in both regions to come together in the ER environment in a bid to investigate and evaluate the data behind the trader and his/ her activities.