With the strong need to innovate, the financial services industry has been getting onboard various technological trends including artificial intelligence (AI) and machine learning (ML). FintechNews Singapore reports that 3 out of 4 banks in Asia deems AI and ML as important factors in improving their business plan.
A study released by Refinitiv revealed that AI is predicted to be the most advantageous technology for financial services providers. In fact, 90% of the respondents in the survey report that they have implemented a form of machine learning in their business. Of this number, three-fourths say that this innovation is a fundamental element, leading to substantial investments in this technology.
Tim Baker from Refinitiv says that while AI helps in the automation of some tasks, its contributions to the sector runs deeper. He emphasizes that it has also enabled various improvements in networking and opportunity generation.
The Refinitiv study says that 61% of ML application is in automation. However, it is also applied in various parts of the financial service provision. Around 82% of the implementation is in risk prevention, 74% in analytics and report generation and 63% in coming up with investment ideas.
Aside from business implementation, the study tackled the reason that they started to invest in AI. The survey says that informed decisions (60%), productivity increase (48%) and minimising costs (46%) are the top reasons participants seek ML technologies.
With the wider use of artificial intelligence in Asian banks, experts say that they are more forward-looking as compared to European organizations. However, European banks are leading in implementing this technology. The International Data Corporate foresees a $5.6 billion investment in ML tech by banks across the globe.
Refinitiv’s participants are financial organizations with over $1 billion annual revenues, data scientists and business leaders.