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FEATURE: AI
Artificial intelligence (AI)
provides banks with the
means to make better use of
the massive amount of data
at their disposal. In doing so,
they can identify opportunities
for growth faster and gain
significant competitive
advantage at a time when
more agile digital counterparts
are emerging. Patrick Ashton,
a Managing Executive at
SilverBridge Holdings, believes
that without this insight, it is
difficult to modernise processes
or to understand how best to
introduce new technologies into
back-end systems.
W
hen it comes to product
development, the
offerings of banks
typically evolve slowly
over time. Part of the problem is that legacy
mainframe systems are expensive and slow
to update while people resources for these
systems are scarce (and becoming more so).
This creates a bottleneck in the process
as the mainframe systems are typically
the central record for all data. This means
they must form part of any new solution
developed. Front-end applications are
relatively quick to develop but back-end
integration or changes to core systems
become the stumbling block.
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INTELLIGENTCIO
Banks must therefore work with
experienced and trusted partners to
extract data from mainframes into modern
database architectures that can use the
data more effectively.
In most instances, curated data
extracts taken from the mainframe are
very large, making it difficult for individuals
to work with. These are typically put into
a spreadsheet format for users to work
with. However, this is inefficient, prone
to error and carries significant risk due to
human involvement.
Instead, banks need the ability to
extract their data and present this to
users in a modern application interface
for task processing. Risks are managed
better, and operational efficiencies are
dramatically improved when simple rule-
based actions and decisions are removed
from the human function.
People can then be empowered to add
higher levels of value into processes through
the analysis of data insights gained, a
better customer-centric service model and
re-imagining of traditional processes. AI-led
technologies enable this transformation.
Of course, all of this must be done within
a strong governance framework. It is
about building robust solutions that involve
risk officers from early in the process to
ensure all the necessary requirements are
taken care of.
Transforming insights
Getting insights from data is the first step
to understanding where efficiency can be
built into the internal processes of banks.
In many instances, banks have been relying
helps unlock the
potential of banks
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