With the world continuously learning more about artificial intelligence and its potential, each industry is making efforts to integrate the technology into its operations. The banking sector is one of the industries that seem to be making impressive steps as far as this case is concerned.
According to recent reports in CNBC, the treasury management services provided by JPMorgan serve as the financial institution’s (F1) target for technological innovation. In fact, the reports revealed that the bank is currently conducting tests of its artificial intelligence-driven bot aimed at not only anticipating the needs of the corporate customers but also supporting them.
What’s more, the publication by CNBC also said that such an AI-powered bot would be the first-ever, particularly for the corporate payments space.
JPMorgan’s treasury department handles a whopping $5 trillion a day in corporate transactions alone. Evens so, the financial institution is currently expanding its trails of a new artificial intelligence (AI) solution with enterprise customers next year. However, the pilot tests for the revolutionary tool are scheduled to kick off next week.
Although JPMorgan has not yet revealed how much money it has put into the virtual assistant, it was reported that about 40% of all its $10.8 billion yearly technology budget is channeled into the creation of new tools.
Jason Tiede, the innovation and managing director of JP Morgan’s treasury services cited in an interview with CNBC that the bank thinks that there is a great opportunity to recommend insightful and creative ideas to customers.
The artificial intelligence (AI)-driven Virtual assistant serves as JPMorgan’s wider efforts to improve its financial service provisions through automation. However, its emphasis on corporates shows the industry’s increased interest in B2B payment innovation. Furthermore, the reports highlighted other companies like Wells Fargo and the Bank of America, which are also launching similar artificial intelligence(AI) driven virtual assistants for corporate customers.
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Even with the growing focus on such tools, the corporate banking industry and B2 payments can pose new impediments for AI innovators. CNBC illustrated this case by saying that while a checking customer only holds several accounts, a company could own 10,000 accounts in dozens of currencies across the globe, and each corporate user is usually allowed to view only some accounts.
The artificial intelligence (AI) initiative demonstrates JPMorgan’s growing competitive edge against its rivals such as Citigroup to lead the commercial payments industry. Although Tiede said that the virtual assistant does not have a name yet, it was initially created to assist customers to move around the financial institution’s website easily.
According to Jason Tiede, the virtual assistant constantly learns from previous interactions with users in a bid to suggest the next move more accurately. For example, the tool can recommend that a user calls various enterprises due to their delayed invoice payments. What’s more, he added that JPMorgan ultimately looks forward to expanding the virtual assistant to allow it to work on both voice-activated gadgets as well as mobile devices.
JPMorgan’s treasury services contribute considerably to the financial institution’s outstanding yearly revenue. In fact, in 2017, it brought in approximately $7.6 billion. By taking advantage of the virtual assistant, the bank will undoubtedly get more money from its treasury service.