PRACTICAL AI: HOW FINANCIAL SERVICES CAN REAP THE BENEFITS

Practical AI : How financial services can reap the benefits

  • Len Langsdorf
  • Published: 18 April 2019

Capco Digital Labs presents Practical AI, a series of thought leadership that focuses on providing insights and guidance on best practices for implementing, navigating and thriving in artificial intelligence (AI) for financial services.

In recent years, we have seen a significant expansion in both AI and its subfield machine learning (ML). Driving both ML and AI’s rapid expansion is research into applications of neural networks or ‘deep learning’ plus notable increases in the performance of graphical processing units (GPU). Together, these two components perform high accuracy classification and regression. As a result, neural networks have received a lot of interest in the marketplace. Despite their popularity, they are not a one-size-fits-all solution. There are a variety of other algorithms and models that can work and perform better than neural networks, in fact. It is therefore crucial you understand your firm’s current situation when trying to assess the correct fit.

The accelerated successes seen by ML across multiple industries has made implementing such models an attractive target for several institutions in financial services. While technology is available in the marketplace, financial service companies cannot simply cut and paste the standard, prepackaged approach into their business. Instead, the financial service space is unique and requires a special, customized plan that accounts for concerns including organizational structure, risk and compliance, data access and quality, privacy, and security.

Capco’s Practical AI will address:

  • Organization design within an enterprise
  • The strategic use of an AI practice
  • Data

- Access and Quality
- Lakes
- Partnerships 

  • Security
  • Privacy
  • Regulatory and compliance

We have already experienced significant success with AI in risk management, fraud detection, and process automation to name a few. When we take care of the structural components of an AI practice companies will see enormous benefits. Already, Digital Labs sees our own AI systems handle the mundane tasks of KYC, FDIC 370 and customer service through voice and text. The future is rapidly approaching, and everyone is poised to reap the benefits of Practical AI.

Capco Digital Lab’s is Capco’s FinTech where we strive to help our clients tackle challenging problems that are critical to their success. We do this by combining Digital Lab's expertise with select FinTech partners and Capco's financial service background. Our approach connects the application of innovative business processes of design thinking and agile methodologies with the latest cutting-edge research in artificial intelligence to deliver a comprehensive solution to our clients.

For more information about Capco Digital Labs please visit https://www.capco.com/Solutions/Capco-Digital/Capco-Digital-Innovation-Labs.


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