It may have taken a while, but banks are slowly beginning to catch up with other organisations when it comes to the implementation of artificial intelligence (AI). Manufacturing and technology firms have long been using AI to improve their services, yet banks have always been a little reluctant; until now that is.
The country leading that movement for banks is the United States. So far, the banks here seem to be the most prepared to integrate AI into their businesses. Not far behind are Singapore and Spain, who are also swiftly moving in the same direction. The five leading institutions from the United States are:
- JP Morgan
- Banks of America
These results were taken from research carried out by UBS, a Swiss financial services company. It involved more than 24,000 consumers from 86 banks, across 19 different countries.
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The following shows the ranking of countries in terms of how forthcoming they are at implementing AI among banks:
- United States
- Hong Kong
One suggestion made from UBS upon completing the research is that where disruption from AI is limited, the revenue of banks could increase by as much as 3.4% by 2020 in an optimal scenario. This optimal scenario would essentially be adopting AI early on in order to reduce costs and increase revenue now.
The research also suggested that in a worst-case scenario situation, revenue could be reduced by 5%. This type of situation would be where non-banking institutions such as Alipay or Google grew significantly and cheaper fees were offered to customers because of automation.
“Against a backdrop of rapid change and potential disruption, banks cannot afford to stand still and do nothing. Players that are quick to embrace innovation and new technologies, such as artificial intelligence, will be well placed to maximise opportunities to improve revenues and efficiency while mitigating disruptive pressures,” states the report.
“In contrast, banks that are slow to adapt and invest are at risk of losing their competitive strength, market positioning, and, ultimately, their earning power.”
As more banks across the world do begin to implement AI into their systems, others will have no choice to follow or they’ll simply be left behind to fail. We’re in a fast-paced, technologically advanced era, and there’s no longer room for old school establishments and practices.