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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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How we use phones to avoid human contact

A recent study by Kaspersky Lab has found that 75% of people pick up their connected device to avoid conversing with another human being.

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Connected devices are becoming essential to keeping people in contact with each other, but for many they are also a much-needed comfort blanket in a variety of social situations when they do not want to interact with others. A recent survey from Kaspersky Lab has confirmed this trend in behaviour after three-quarters of people (75%) admitted they use a device to pretend to be busy when they don’t want to talk to someone else, showing the importance of keeping connected devices protected under all circumstances. 

Imagine you’ve arrived at a bar and you’re waiting for your date. The bar is busy, and people are chatting all around you. What do you do now? Strike up a conversation with someone you don’t know? Grab your phone from your pocket or handbag until your date arrives to keep yourself busy? Why talk to humans or even make eye-contact with someone else when you can stare at your connected device instead?

The truth is, our use of devices is making it much easier to avoid small talk or even be polite to those around us, and new Kaspersky Lab research has found that 72% of people use one when they do not know what to do in a social situation. They are also the ‘go-to’ distraction for people even when they aren’t trying to look busy or avoid someone’s eye. 46% of people admit to using a device just to kill time every day and 44% use it as a daily distraction.

In addition to just being a distraction, devices are also a lifeline to those who would rather not talk directly to another person in day-to-day situations, to complete essential tasks. In fact, nearly a third (31%) of people would prefer to carry out tasks such as ordering a taxi or finding directions to where they need to go via a website and an app, because they find it an easier experience than speaking with another person.

Whether they are helping us avoid direct contact or filling a void in our daily lives, our constant reliance on devices has become a cause for panic when they become unusable. A third (34%) of people worry that they will not be able to entertain themselves if they cannot access a connected device. 12% are even concerned that they won’t be able to pretend to be busy if their device is out of action.

Dmitry Aleshin, VP for Product Marketing, Kaspersky Lab said, “The reliance on connected devices is impacting us in more ways than we could have ever expected. There is no doubt that being connected gives us the freedom to make modern life easier, but devices are also vital to help people get through different and difficult social situations. No matter what your ‘connection crutch’ is, it is essential to make sure your device is online and available when you need it most.”

To ensure your device lifeline is always there and in top health – no matter what the reason or situation – Kaspersky Security Cloud keeps your connection safe and secure:

·         I want to use my device while waiting for a friend – is it secure to access the bar’s Wi-Fi?

With Kaspersky Security Cloud, devices are protected against network threats, even if the user needs to use insecure public Wi-Fi hotspots. This is done through transferring data via an encrypted channel to ensure personal data safety, so users’ devices are protected on any connection.

·         Oh no! I’m bored but my phone’s battery is getting low – what am I going to do?

Users can track their battery level thanks to a countdown of how many minutes are left until their device shuts down in the Kaspersky Security Cloud interface. There is also a wide-range of portable power supplies available to keep device batteries charged while on-the-go.

·         I’ve lost my phone! How will I keep myself entertained now?

Should the unthinkable happen and you lose or have your phone stolen, Kaspersky Security Cloud can track and protect your device from data breaches, for complete peace of mind. Remote lock and locate features ensure your device remains secure until you are reunited.

 

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Five key biometric facts

Due to their uniqueness, fingerprints are being used more and more to quickly identify and ensure the security of customers. CLAUDE LANGLEY, Regional Sales Manager, for Africa at HID Global Biometrics, outlines five facts about the technology.

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How many times in a day are you expected to identify yourself? From when you arrive at work you are required to sign in, visiting your bank, receiving healthcare services… The list is endless. When a system knows who you are, you are able to do any number common, everyday activities. Your identity is unique and precious. It is also easily stolen and the target of many hackers across the globe. Technology is constantly evolving alongside the criminal element, always looking for ways to protect data and identity. One such solution happens to be biometrics and it is rapidly gaining traction in our increasingly complex modern world.

Reliable, secure and fundamentally YOU, unique biometric traits such as fingerprints are being used by banks, enterprises and consumers to verify identity. Biometric solutions offer significant identity protection because they use unique biological details to ensure an account is only accessed by the account holder, a door only opened by the owner. Here are five things that are little known about this technology…

  • The uncut identity. Your fingerprint is unique to you. Nobody can use a copy of it to impersonate you. Good technology is capable of scanning down into the layers of the fingertip to differentiate unique elements of a person’s fingerprint, this data is then encrypted and used as a key to unlocking whichever physical or virtual door that the biometric system protects.
  • The living proof. No, there is nothing to the stories of fingerprints being used without their owner’s knowledge or permission. Biometric solutions can use specific variables to determine if the finger used to access the system is that of a present, living person.  A copy or a fake cannot be used to access a cutting-edge biometric solution.
  • Easy and convenient. Queues and documents and paperwork may well be a thing of the past should biometrics take a firmer grip of government and banking systems. The process of registering is easy, and access to identity documents and records is yours alone.
  • Security blanket. A thousand passwords and a hundred post-it notes stuck on walls and drawers.  An excel file with a list of sites and applications and their corresponding passwords, all a thing of the past.  Nobody needs to remember their password with biometrics, they only need to show up.
  • Anywhere is cool. Schools, airports, networks, offices, homes, toilets, banks, libraries, governments, border controls, immigration services, call centres, hospitals and even clubs and pubs – knowing “who” matters and biometrics can quickly and conveniently confirm your identity where needed.

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