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AI aims at banking

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Despite the bad reputation some older movies have given AI, a recent survey by Accenture shows that it could well be a big deal in banking, says KELE BOAKGOMO, Managing Director for Financial Services practice at Accenture, South Africa.

Artificial Intelligence gets a bad rap in pop culture. Movies like Terminator (with its rebellious Skynet) and 2001 (with its murderous HAL 9000) portray a future where the robots get smart, and conclude that it is in their interests to try and destroy mankind.

But the truth about AI is a lot more mundane. Most of us use AI every day when we talk and interact with Siri or Google on our phones and AI is why Netflix knows what movies you’ll like and what other products you’ll want to buy on Amazon.

And AI is poised to become a big deal in banking. An Accenture poll of more than 600 bankers reveals that 79 percent believe AI will revolutionize how banks learn from and interact with customers; 76 percent believe that AI interfaces will be the primary point of contact between banks and customers within three years; and 71 percent think AI can be the face of their brand.

AI encompasses three different technologies: Language processing that allows computers to “talk” with humans; machine learning where computers compare new information with existing data to find patterns, similarities and differences; and expert software systems that provide personalised advice. At its best, machines learn from experiences and can interact with humans and behave in ways that mimic the human brain.

Robots and artificial intelligence are already being embraced by banks around the world, both in branches and in back offices. At City Union Bank in the Indian city of Chennai, a robot called Lakshmi tells customers about their account balances and the current interest rates on mortgages. At the Bank of Tokyo Mitsubishi UFJ, a robot called Nao analyses facial expressions and behavior as it interacts with customers in Japanese, English and Chinese. Lakshmi and Nao are early, visible signs of how banks can use AI to personalize the banking experience.

In South Africa, AI is not new, but the move of AI beyond process to interaction with customers is new. AI is coming of age, tackling problems both big and small by making interactions simple and smart. It is becoming the new user interface in the banking space and underpinning the way we transact and interact with systems. Nearly two-thirds (63 percent) of South African bank respondents in the recent Technology Vision for banking research agree that AI will revolutionise the way they gain information and interact with customers.

Now, banks in the U.S are also starting to catch on. Capital One customers can check their accounts and pay credit card bills by talking to Amazon’s Alexa and HSBC customers can quiz the bank’s virtual online assistant Olivia who can answer questions about security and other issues and learns from the effectiveness of her answers. Santander has voice banking, powered by Nuance’s virtual assistant Nina, which allows customers to make transfers and payments based on voice recognition authentication. And, RBS has developed Luvo – a customer service pop-up window that asks customers online if they need help with simple tasks, freeing staff to work on resolving more complex problems. At Accenture, we’ve built Collette – a virtual mortgage adviser that asks customers questions in a natural conversational style and generates personally-tailored advice.

But these cool services are only the first step. Banks need to start using AI to streamline the process of applying for loans or to reimagine ATM interactions to reflect the customer’s typical needs, giving customer’s a blank screen to start with, for example, rather than a standard menu. In the end, AI will help banks truly customise the banking experience by making personalised recommendations and advice. Your bank’s AI might notice from your deposits that your salary has increased and will suggest ways to save more for retirement, or that you just started purchasing diapers for the first time and maybe it’s time to start a college savings account.

Crunching a trove of customer data – everything from banking to automotive records and credit bureau reports – will give banks a clearer picture than ever before of what their customers might want from a financial institution. That’s important because more than two-thirds (67 percent) of bankers say they currently struggle to understand their customers’ needs.

But as banks move forward, they have to make sure they don’t lose the human touch where it’s needed. AI can delight customers and make their transactions quicker and easier. But it can’t completely replace people. In many situations, from personal interactions to nuanced understanding of someone’s financial status, customers need to work with human beings.

A Weber Shandwick survey reveals that, while more than half of consumers say they would trust AI to provide financial guidance, 52 percent of people are concerned about the possibility of stolen data or invasion of privacy — concerns that banks can address by applying extra levels of security around complex transactions such as transferring money between accounts.

Incorporating AI will make banks more efficient, save them money and will make staff more productive by freeing them up to help customers in a more targeted way. And, as we have noticed from other disruptive technologies, once other banks have embraced these advances they will become a mandatory component of any banking offering to retain customers and gain new ones.

Companies should take three steps to ensure that they get it right with AI: 1) Create a clear strategy for using customer data and define how AI tools can best leverage that information; 2) Consider developing an AI Center of Excellence to spearhead the effort; 3) Create a test-and-learn environment to accelerate innovation and to explore how machines can add the cognitive processes of perception, learning and reasoning.

It’s inevitable that customers will have fewer visits at bank branches, but these few interactions with human staff will become more important to customer satisfaction. That means that the bank of the future will need to blend a mix of AI and human interactions if they want to be successful. What we see around us is just the beginning.

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Opera launches built-in VPN on Android browser

Opera has released a new version of its mobile browser, which features a built-in virtual private network service.

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Opera has released a new version of its mobile browser, Opera for Android 51, which features a built-in VPN (virtual private network) service.

A VPN allows users to create a secure connection to a public network, and is particularly useful if users are unsure of the security levels of the public networks that they use often.

The new VPN in Opera for Android 51 is free, unlimited and easy to use. When enabled, it gives users greater control of their online privacy and improves online security, especially when connecting to public Wi-Fi hotspots such as coffee shops, airports and hotels. The VPN will encrypt Internet traffic into and out of their mobile devices, which reduces the risk of malicious third parties collecting sensitive information.

“There are already more than 650 million people using VPN services globally. With Opera, any Android user can now enjoy a free and no-log service that enhances online privacy and improves security,” said Peter Wallman, SVP Opera Browser for Android.

When users enable the VPN included in Opera for Android 51, they create a private and encrypted connection between their mobile device and a remote VPN server, using strong 256-bit encryption algorithms. When enabled, the VPN hides the user’s physical location, making it difficult to track their activities on the internet.

The browser VPN service is also a no-log service, which means that the VPN servers do not log and retain any activity data, all to protect users privacy.

“Users are exposed to so many security risks when they connect to public Wi-Fi hotspots without a VPN,” said Wallman. “Enabling Opera VPN means that users makes it difficult for third parties to steal information, and users can avoid being tracked. Users no longer need to question if or how they can protect their personal information in these situations.”

According to a report by the Global World Index in 2018, the use of VPNs on mobile devices is rising. More than 42 percent of VPN users on mobile devices use VPN on a daily basis, and 35 percent of VPN users on computers use VPN daily.

The report also shows that South African VPN users said that their main reason for using a VPN service is to remain anonymous while they are online.

“Young people in particular are concerned about their online privacy as they increasingly live their lives online,” said Wallman. “Opera for Android 51 makes it easy to benefit from the security and anonymity of VPN , especially for those may not be aware of how to set these up.”

Setting up the Opera VPN is simple. Users just tap on the browser settings, go to VPN and enable the feature according to their preference. They can also select the region of their choice.

The built-in VPN is free, which means that users don’t need to download additional apps on their smartphones or pay additional fees as they would for other private VPN services. With no sign-in process, users don’t need to log in every time they want to use it.

Opera for Android is available for download in Google Play. The rollout of the new version of Opera for Android 51 will be done gradually per region.

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Future of the car is here

Three new cars, with vastly different price-tags, reveal the arrival of the future of wheels, writes ARTHUR GOLDSTUCK

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Just a few months ago, it was easy to argue that the car of the future was still a long way off, at least in South Africa. But a series of recent car launches have brought the high-tech vehicle to the fore in startling ways.

The Jaguar i-Pace electric vehicle (EV), BMW 330i and the Datsun Go have little in common, aside from representing an almost complete spectrum of car prices on the local market. Their tags start, respectively, at R1.7-million, R650 000 and R150 000.

Such a widely disparate trio of vehicles do not exactly come together to point to the future. Rather, they represent different futures for different segments of the market. But they also reveal what we can expect to become standard in most vehicles produced in the 2020s.

Jaguar i-Pace

The i-Pace may be out of reach of most South Africans, but it ushers in two advances that will resonate throughout the EV market as it welcomes new and more affordable cars. It is the first electric vehicle in South Africa to beat the bugbear of range anxiety.

Unlike the pioneering “old” Nissan Leaf, which had a range of up to about 150km, and did not lend itself to long distance travel, the i-Pace has a 470km range, bringing it within shouting distance of fuel-powered vehicles. A trip from Johannesburg to Durban, for example, would need just one recharge along the way.

And that brings in the other major advance: the i-Pace is the first EV launched in South Africa together with a rapid public charging network on major routes. It also comes with a home charging kit, which means the end of filling up at petrol stations.

The Jaguar i-Pace dispels one further myth about EVs: that they don’t have much power under the hood. A test drive around Gauteng revealed not only a gutsy engine, but acceleration on a par with anything in its class, and enough horsepower to enhance the safety of almost any overtaking situation.

Specs for the Jaguar i-Pace include:

  • All-wheel drive
  • Twin motors with a combined 294kW and 696Nm
  • 0-100km/h in 4.8s
  • 90kWh Lithium-ion battery, delivering up to 470km range
  • Eight-year/160 000km battery warranty
  • Two-year/34 000km service intervals

Click here to read about BMW’s self-driving technology, and how Datsun makes smart technology affordable.

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