The Digital Transformation of Banking
To take advantage of some of the opportunities that offer analytical, you really have to move to the cloud infrastructure. The disruptive technologies affecting financial services, and which include artificial intelligence, and technology blockchain cloud.
How is transforming, artificial intelligence how banks serve their customers? Now we are already seeing that artificial intelligence is altering the way to serve our customers in two very specific aspects.
- First, it enables us to use the data in a way that until now we could not do.
- And secondly, every day we see progress in terms of new solutions that allow us to assist, both employees and customers, in many different ways.
If we focus on machine learning applied to forms of use of artificial intelligence to analyze data, what we see is that we can significantly improve the way we develop our risk models and the targeting of our offers or our marketing campaigns.
- For example, we are also experiencing and we appreciate the fact of being able to use learning machines to exploit data that previously could not be used.
- We have an example of data structures, we can treat the same way we analyze texts or images, and this would not be possible without advances in artificial intelligence, linked to big data.
- What we also see in the new applications and potential solutions is the virtual assistant can be mobile or web channel, with which one could interact in a very friendly way thanks to this assistance.
- We have some examples of these applications in cities, in our daily lives, and I think we will see increasingly more and more solutions of this kind, for example also applied to banking.
We started before IBM decided to bring Watson to Spanish.
When Watson decided they wanted to develop another language besides English, we came to ask us to collaborate bringing the experience of a use case, and they started working with us to transfer technology to Spanish. So we started working with IBM Labs, helping them to adjust technology. And what emerged from this collaboration was an application to assist our employees when they had to work with related products and trade finance processes. This is a complex process and a complex product to sell to our corporate and business segment, and it was very well received by employees.
What we did with IBM was to help them identify improvements that could be introduced in technology in order to facilitate its expansion. The main challenge for technology remains the learning process through which one must pass. And now we are helping on this front and also are looking at how we can expand technology in the bank. We are working to bring technology to all our employees in the form of the cognitive call center.
When customers or employees have any questions, rather than call the call center. They have a virtual assistant that will help in the process, and perhaps the end will not have to make the call.
What will be its impact on banking and financial services? As you mentioned, we are seeing that the blockchain has tremendous disruptive potential, basically how banking processes and infrastructure we use will work in the future. As for our potential, we located mainly in two areas;
- The first is where we still have intermediaries
- Where we also have to do many checks manually processes
And we have some concrete examples in this regard, as international payments, still involve a significant workload, and they are not in real time, as an area of potential application. We also see that have an impact when help regulators, and also institutions, gain transparency in certain markets, and this, for example, may be used specifically for understanding the reuse of certain assets. Still, both applications are really disturbing order.
In using chain blocks a high degree of collaboration between institutions is necessary, also between institutions and regulators, so it is possible it takes some time to come to realize the benefits we see that you can get from this technology.
This is another area that still has more acceptances. What do you think are the main obstacles associated with cloud computing? The cloud has long since exists. Clearly, we see obstacles, but you have to be positive and optimistic because we are seeing that technology is developed to overcome these obstacles.
One of the major concerns we have is security, the fact that banks have to locate data across its operational centers, and in some cases from being conditioned or questioned by regulators, depending on the location of the centers. It also requires changes in the regulatory, so that you can take full advantage the potential that technology offers while maintaining safety.
All of this is improving the technology itself is providing us solutions, such as technology in private or hybrid cloud; although in this area we find some limitations.
Big Data and Analytics
The big data and analytics is the integration of analytics cloud specifically transactional systems. It is an issue that still has not been solved, and this slows their application in certain areas of the bank, for example.
It has to do with the governments of the cloud, because probably all we use different clouds, and also different types of clouds, whether public, private, hybrid. So also you have to think what the architecture and infrastructure necessary to manage all these platforms, and this is also being developed right now. So that still it will take some time to close the matter and capture its full potential. The cloud gives you a level, an amount of flexibility.
There is currently a part of the analytical nobody would be able to carry out in their own facilities, the amount of data required or the cost it would have if they want to develop as well. Just it would not be efficient. So that, to take advantage of some of the opportunities that offer analytical, you really have to move to the cloud infrastructure.
A lot more collaboration and joint work between traditional equipment and technological equipment, one thing is already happening in other sectors. These would surely be the two changes would be needed to complement the technology.