Artificial intelligence (AI) and machine learning are already making a significant contribution to the banking industry, and will only become more important in the coming years.
These technologies can have many purposes for financial institutions, from the integration of machine learning into fraud prevention solutions to the use of advanced analytics to better understand customer trends and behaviors.
In an article for The Financial Brand, Jim Marous, publisher of the Digital Banking Report, said the use of AI in banking is about to “explode”. However, he also pointed out that some banks are taking a cautious approach to this concept, partly because of concerns such as regulatory compliance and security.
One institution that recently took a big step towards more widespread application of AI is Royal Bank of Canada (RBC). The company, which is Canada’s largest bank, announced the appointment of Dr Richard Sutton as head academic advisor to RBC Research in machine learning.
RBC Research will set up a new lab and aims to work with the Alberta Machine Intelligence Institute (Amii) at the University of Alberta.
Dr Foteini Agrafioti, head of RBC Research, said: “We are thrilled to be opening a lab in Edmonton and to collaborate with world-class scientists like Dr Sutton and the other researchers at Amii.
“RBC Research has built strong capabilities in deep-learning, and with this expansion, we are well poised to play a major role in advancing research in AI and impact the future of banking.”
Gabriel Woo, vice-president of innovation at RBC, said AI has the potential to deliver big improvements in areas like client service, fraud prevention and risk management.
It will be fascinating to see how investment and adoption within this field progress over the coming years. Within a decade, could we see a banking industry where machine learning and AI are seen as indispensable, rather than innovative?