Banking & Financial Services

Advantage AI - Smart Banking

Homo

Sapiens man the wise is the

scientific

nomenclature

of

The key constructs of Artificial Intelligence, as we understand: -

humans

because our metal bandwidth is key to our

human minds.

existence. The field of artificial intelligence

(AI) attempts to understand mechanics of
such intelligent entities and build similar

automate solutions to complex problems:

analyze

behavior

the

and

current

state,

model

the

predict

Acting rationally: The rational agent approach - achieving perfect rationalityalways

doing the right think

optimum

management solutions.

Thinking rationally: The laws of thought approach - - codify "right thinking," that is,
irrefutable reasoning processes.

intelligent entities - which are able to

to

Thinking humanly: The cognitive modelling approach - simulate the actual workings of

Our increasing knowledge about the mechanics of the human brain and our ability to embed

Regardless of whatever definition we may

brain-like elements into computers have engendered such capabilities as natural language

have smart machines,

intelligent

learning, voice &pattern recognition, machine learning. Such capabilities today are yielding

automation , cognitive computing - AI

practical benefits for Industries - question-answering medical diagnostic systems, credit scoring,

is

program trading, fraud detection, product recommendations, image classification, speech

enjoying

renaissance

at

present

because of impact it has on businesses of

today

and

tomorrow

the

promise

it

holds

recognition, language translation, automated financial advisory and self-driving vehicles

for
Banking & Financial Services Industry , which has traditionally been the early adopters of new
technologies have shown great inclination towards AI as the opportunities are limitless even
though the business value benefits are evolving. In the BFS Industry domain , AI solutions have
the potential to bring about innovations in problem solving capabilities and improving the
productivity of human staff towards delivering superior business outcomes. - attaining new levels
of process efficiency, such as improved operational cost, speed, accuracy and throughput
volume

Bricks+Clicks distribution model, significantly reducing the number of

branches and digitising the back and front office of available
branches with AI Powered solutions
The drivers for banks and financial services

customers language of choice (driven by

to adopt these technologies can be

customer

classified as under:-

customers to set up an account or help with

persona)

and

enable

their

other administrative issues.

Compete with Non Bank companies Technology companies like google , apple
, wealthfront etc who have disrupted the
payment

services

and

wealth

management services ( Robo Advisors)

and are looking to tresspass more into the

Data-driven AI applications to make

better informed lending decisions

Automated agents that assist the

user, over the Internet, in determining
insurance needs

AI solution for monitoring users

behavioral
patterns
to
identify
anomalies and warning signs of fraud
attempts and occurrences, to identify
and prevent bank frauds

traditional areas of banking

It can also support additional functions like

Tellers, Mortgage brokers, insurance claims
and

policy

processing,

underwriting etc.
only

drive

significant

efficiencies
cost

insurance

Such arrangements not

but

optimization

also

drive

for

banks

branch operations.

Managing the mass of millennials They

For instance, a leading bank has installed AI

are

powered Intelligent Kiosks to address the

now

the

largest,

most

diverse

generation in the U.S. population as per the

financial

Council of Economic Advisers, President of

customer who are transitioning from military

USA. In years to come , this age group will

service to civilian life

planning

requirement

of

their

form the key customer base of the banks

and will shape US economy for decades

Robots like Nao (at Bank of Tokyo-Mitsubishi

to come. Hence, its imperative that Banks

UFJ) and Pepper (at Mizuho Bank) are

takes them seriously

playing

the

executives
Outperforming their peers growth

Managing

in a competiting marketplace ,

opportunity for cost saving is significant

with AI and process automation - cost
savings from front office automation and
customer-facing functions ,Reduced error
rates, Improved standardization of process
workflows , Fraud management etc

role

at

of

branch

customer
and

are

relation
driving

excitement amongst the customer groups.

Interestingly, Pepper could become the first
humanoid

consumer

robot

and

the

beginning of an era of mechanized, cloudconnected

emotion-reading

digital

assistants.
Pepper went on sale to the public in June
2015 for approximately $1,600, the robot

Many Financial Institutions understand the

benefits and impacts of AI. Retail banks,
Asset & Wealth Managers, Brokerage firms,
Investment

Banks

are

all

experimenting

/implementing AI solution in various facets of

their Business As Usual processes
In retails banking, AI solutions can deliver
wonders, both in customer experience and
cost. Such solutions can be implemented as
part of future of bank strategy wherein it
enables digital experience for customers in
branch.

Imagine customers being greeted by AI

communicates in multiple languages, using

sensors and cloud-based artificial intelligence
(AI) capabilities and has the ability to evolve
its skills over time through continuous learning.
In the heart of Pepper is an emotion
engine through which it recognizes human
feelings and simulates accordingly.

That said, more banks are making forays into

investing in technology companies making
robots that can answer "complex financial
questions posed in plain English. Innovative
way to address customer interactions and
deploy smart assets in customer facing role.

powered Robots in the bank branches in

Fraud management is another significant

Overarching

area where AI powered solution can play a

strategy enabled by these AI solutions for the

individualized

investment

significant role. It is often frauds that expose

consumer trumps generalized product sales

the most vulnerable part of banking, leading

within a brokerage format.

to loss of reputation and customers.

In

this

sphere,

Brillios

solution

enables

The intent to apply artificial intelligence,

Traditional advisors seeking to automate their

without relying on manual banking systems,

financial advisory that not only expand its

to

Direct-To-Consumer

get

an

early

warning

on

frauds

is

capabilities

but

also

underway and some of the leading global

helps to leverage such automated platforms

banks have been experimenting with it. There

for advisor solutions and offer the technology

has been a paradigm shift in fighting fraud

platform to a wide range of broker-dealers,

from

cloak-and-dagger techniques to

insurance companies, banks, and custodians

Market for AI systems for

more sophisticated early warning detection

to turn their human advisors into tech-

enterprise

and prevention based on expert /Intelligent

augmented "cyborg" advisors

applications

expanding at approximately
55 % CAGR

systems.
Unlike expert systems of the past, which
required rules to be hard coded into a system
by a human expert, Brillio s patented PRISM
can

process

natural

language

and

unstructured data and learn by experience,

Automated financial advisors and

planners that assist users in,
providing customized financial
advice

much in the same way humans do. PRISM

acts as a decision support system and helps
to curb bank frauds in much more proactive
way.

leading traditional players have not only

adopted such automated platforms but are
also leveraging such platforms to distribute
ETFs through this new channel.
Both the Robo -advisors and the traditional
firms are driving the cost of Robo-technology
down to zero, relying on their ability to profit
from

Brillios patented

Market for AI systems for

enterprise applications will
approx. $11.1 billion by 2024

Market trends clearly implies that some of the

analytics

have

technology in cognitive

inbuilt

machine

learning

algorithms to sense, predict, infer and think.

This solution can be applied in many more
areas

of

banking

beyond

fraud

the

traditional

channels

of

manufacturing investment products (e.g.,

ETFs)

and

delivering

personal

financial

advice, and out commoditizing the Roboadvisor.

and

customer service, example in the area of

Wealth & Asset Management, especially in

Overall,

the

commercial

market

for

enterprise

systems

for

applications

AI

is

growing at 55 % CAGR (approx.) as per

Fiduciary Service.

analysts reports.

This clearly indicates that

In the last couple of years, Automated

the AI is gaining momentum in commercial

financial advisors, commonly referred as

enterprises

Robo Advisors, have invaded this space.

Banking and Financial Services.

across

the

globe

including

Initially when launched, they disrupted the

advisory services to an extent that there was
a sense of panic amongst the traditional

Therefore its imperative that the industry

captains put on their thinking cap and

players.

envision where AI has the potential to disrupt

However, of late many such traditional firms

their business or even their entire industry.

have appreciated the need for digital wealth

management and are looking to compete
with

combined

offerings

of

advisors

leveraging these platforms to serve the mass

affluent.

At Brillio, we work with some of the leading brands across different Industry Segments. DigitalSIGMA is
Brillio s interwoven digital technology stack with integrated execution model which allows us to
enable our clients in their digital transformation initiatives Our structured execution, agile
accelerator methodologies, baked-in platforms allows us to think big, start small fail fast and scale
quickly.
DigitalSIGMA helps in faster adaption of key digital forces required to address unique needs to each
Industry, thereby enabling our clients to re-think their business models and processes, create
experiences inspired by customers, uncover insights to shape products and services, engage better
with employees and business partners.
DigitalSIGMA @Brillio delivers end to end in Digital initiatives From Imagination through
Implementation led by global team which includes thought leaders, consulting and strategy experts,
business analysts, user experience designers, data scientists, and engineers trained in the latest
technologies.

sandip.sinha@brillio.com