Deloitte: AI and financial ecosystem transformation
According to an article by Deloitte, artificial intelligence is significantly changing the traditional operating models of financial institutions
According to an article by Deloitte, artificial intelligence is significantly changing the traditional operating models of financial institutions
The proliferation of artificial intelligence in the financial services sector if shifting strategic priorities and upending the competitive dynamics of the traditional ecosystem models, says Deloitte.
In How artificial intelligence is transforming the financial ecosystem, the global consultancy firm considers how financial services players can better embrace AI technology to succeed.
The technology, says Deloitte, is likely to have a significant impact on every sub sector of the industry.
In payments, for example, Deloitte explains that AI is behind new and innovative tools that allow for the combatting of fraud and security risks.
It is also increasing customer engagement and confidence by enabling real-time interventions and responses to any potential threat.
Deloitte explains that “AI enables payments providers to generate new revenue streams by using their databases to provide unique insights.
Likewise for deposits and lendings, it is suggested that banks can increase profitability through the delivery of personalised lending operations. By using AI, organisations are able to deliver advice at scale and redefine and improve the value proposition.
AI, Deloitte adds, “can deliver smarter and more nimble workflows that improve the productivity and reach of lending operations. It is launching a commercial banking renaissance through improved data integration and analytics tools that unlock a vast underserved market.”
The insurance industry is undergoing significant digital disruption.
AI in particular is enabling insurers to predict risk with greater accuracy and to customer products to better suit customer requirements.
The use of AI in insurance is allowing a more agile operating model to emerge for organisations, while also driving efficiencies in underwriting, claims and distribution channels.
AI impact: key findings
Deloitte highlighted several key findings that further outline the impact of AI on the financial services. These include: