AI and the Future of Banking

ISBN-13: 9781119596127 / Angielski / Twarda / 2020 / 304 str.

Tony Boobier

Spis treści

Acknowledgements xvAbout the Author xviIntroduction xviiChapter 1 Prologue: Why Banking? 1Summary 1Introduction 2What is Banking? 4What Do We Mean by 'Money' Today? 7A Cashless Society Increasingly Emerges 8Key Banking Functions 10Future Jobs in Banking 14Conclusion 17References 18Chapter 2 Imperatives in Banking 21Summary 21Introduction 21Strategy and Imperatives 23Strategy 23Business Imperatives 24Current Imperatives in Banking 24Comparable Imperatives in the Retail Industry 26Comparable Imperatives in the Telecom Industry 27Comparable Imperatives in the Healthcare Industry 29Future Imperatives in Banking 30Greater Customer Centricity 30Becoming Truly Digital 31Completely Accepting Technological Change 33Reimagining Banking 33Reinventing Risk Management 35Conclusion 36References 37Chapter 3 Data and Analytics Primer 39Summary 39Introduction 39Data Management and Analytics 42Data Management 42The Hierarchy of Analytics 43'Next-Generation' Cognitive Analytics 45Extracting Value from Data 46The Importance of Location Analytics 50Conclusion 51References 52Chapter 4 Key Elements of Banking Analytics 55Summary 55Introduction 56Office of Finance Management 56Performance Management and Integrated Decision Making 58The Key Elements of Banking Performance Management 59Customer Analytics 61Customer Insight 61Credit Ratings 65Branch-Specific Campaigns 66Impact of Social Media Campaigns 67Relationship Pricing 69Client Servicing 71Risk Management 73Risk Scenario Analytics 74Fraud Detection 75Regulatory Compliance 76Risk Management and AI 76Operational Efficiency 77IT Cost Transparency 78Branch Performance Management 78Contact Centre Service 80Payments Monitoring 82Mortgage Tracking 83Sales, Compensation and Commission Management 83Financial Markets Risk and Trade Monitoring 84Analytics in Portfolio Management 85Derivative Markets 86Conclusion 87References 89Chapter 5 Machine Learning, AI and 'Apps' 93Summary 93Introduction 93Theory and Practice of Machine Learning 95Apps and Their Usage 96Data Visualisation 101Voice Recognition and Voice Assistants 102Visual and Facial Recognition 104Thumbprint Recognition 106Palm Vein Recognition 107Wealth Management Systems and Apps 107The Biometric Moral Argument 109Conclusion 111References 112Chapter 6 AI and the Importance of Brand in Banking 115Summary 115Introduction 116Brand Value and Equity in Banking 117Millennial and Gen Y Brand Expectations from Bank Brands 119Branding Expectations of Generation Z 120Branding Expectations of Generation X 121Branding and Customer Experience Interlocked 123Branding and Human-Centred Design 124To Brand or to Debrand? 125Banks Will Use AI to Become Lifestyle Managers 128Consumption and Credit Smoothing 128Conclusion 130References 130Chapter 7 AI Leadership and Employee Transformation 133Summary 133Introduction 133Leadership in an AI-Infused Age 136Augmented Leadership 137Analytically Infused Leadership 138A New Approach to Leadership: 'Trust but Verify' 140Attributes of AI-Infused Leaders 141Leadership Training for the Future 143'Digital Future of Banking Requires a New Leadership Model' 145Zen and Leadership in Banking 146Functional Change and Role Transformation 147The Evolution of the Banking Employee 149A Banking Employee Persona in 2050 149Conclusion 151References 152Chapter 8 The Bank of the Future 155Summary 155Introduction 156Branch Makeover 156The Emergence of the Café Bank 159Millennials Not Happy with Dealing Only with Robots 160Virtual Reality: Banking and Gaming Converge 161Universal Banking and Beyond 163Universal Banking in the United States 164Banks as the Catalyst for Change: 'Peer to Peer' 164Payment Processes Become More Customer Centric 166Five Scenarios for the 'Bank of the Future' 167The Full-Service Bank 168The Digital Bank 169The Disaggregated Bank 170The Conversational Bank 173The Collaborative Bank 174Transformation of the Investment Bank 175Conclusion 178References 179Chapter 9 Open Banking and Blockchain 183Summary 183Introduction 184Setting the Stage: Open Banking 184Interlock between AI and Open Banking 186Blockchain: Setting the Stage 186Interlock between Blockchain and AI 188Blockchain in Banking 188Interbank Market 189Forex Market 190Investment Banks and Blockchain 191Blockchain in Indian Banking 193Blockchain and Open Banking in Africa 196Conclusion 199References 201Chapter 10 Innovation and Implementation 203Summary 203Introduction 203New Roles and Responsibilities 204Bootcamps, Hackathons, Innovation Labs, and Other Devices 205Implementation 207Innovation or Adaptation? 208The Use of 'Design Thinking' 210Finding Capital to Innovate: One Example 211Fintech for Banking 212Blockages to Innovation 216Conclusion 218References 218Chapter 11 Cybercrime and IT Resilience 221Summary 221Introduction 222Cybercrime in the Context of Operational Risk 224The Internationalisation of Cybercrime 225Cyber Security Toolkits 226Cyber Risk Management Apps 227Broader Cyber Issues for Banking 227Safeguarding the Bank of the Future: New Cyber Security Threats 228Responding to Cyber Attack 230Cyber Readiness 231New Cyber Roles, New Cyber Responsibilities 233AI Fraud Detection in Banking 234Advanced Analytics in Fraud Detection 235AI and Anomaly Detection 236Fraudulent Use of Data 236Cyber and the Law 238Conclusion 239References 239Chapter 12 Epilogue 243Appendix: Fintech in Banking 247Index 271

O autorze

TONY BOOBIER is a former IBM worldwide executive focusing on financial services. He has over 30 years of experience and is a frequent writer and international public speaker. Tony possesses a deep understanding of how to apply business intelligence and analytics to enhance the management and delivery of products and services in numerous industries. A recognised expert in customer analytics, risk and operational effectiveness, he is a strong advocate for enterprise-wide analytics to improve service and reduce cost. He holds professional qualifications in engineering, marketing, supply chain management and insurance.