Independent Banker - November 2019 - 50
shows that few small and mid-sized
financial institutions have made
investments into AI-enabled technology.
Earlier this year, Cornerstone Advisors
surveyed senior executives at U.S.-based
mid-size banks and credit unions of
between $250 million and $50 billion in
assets for its What's Going on in Banking
2019 study. The financial industry
consultancy found that a mere 2% of midsize
financial institutions have already
deployed chatbots, machine learning or
other AI technologies, and only 5% have
implemented robotic process automation.
" With machine
learning on the
back end, as a bank,
we didn't want to
have 30 people
doing data entry.
In the machine
learning space, to
massage data and
pull from multiple
sources and put
into systems we
needed it to go into,
that helped. "
-Matthew M. Speare,
Carter Bank & Trust
50 Q ICBA Independent Banker Q November 2019
" Artificial intelligence use is rare when
compared to machine learning, " says
Quintin S. Sykes, managing director
of Cornerstone Advisors of Scottsdale,
Ariz. " I'm distinguishing between the
two, as machine learning leverages
historical data to train models for
supervised learning, where AI attempts
to gain insight into data on its own, or
unsupervised learning. "
Sykes sees machine learning
development in banking happening
in several areas. These include fraud
detection, where neural networks have
been used to score credit and debit
card transactions for fraud for decades,
and fraud prevention, where machine
learning models score the risk of logins
and money movement activities in digital
banking solutions. It's also being used
to underwrite consumer loans, where
consumer credit risk models are being
tuned using machine learning.
In marketing, it's used to produce
next-best product and attrition models
and generate alerts to prompt customer
outreach for cross-selling and retention.
Machine learning is also used with
optical character recognition (OCR),
where the MICR (magnetic ink character
recognition) name line and amount on
checks and other handwritten documents
are scanned is a standard practice.
It's all about the data
But the current is speeding up. " Banking
in the 21st century is no longer just about
managing investments and money, but
more about the way financial institutions
work with their data, " says Yogesh Pandit,
the founder and CEO of Hexanika, a U.S.based
company that automates business
processes using AI and big data.
" In lieu of this, " Pandit continues,
" technologies like artificial intelligence,
big data, blockchain, cloud, security,
IoT [Internet of Things], robotics and
robotic process automation have started
Independent Banker - November 2019
Table of Contents for the Digital Edition of Independent Banker - November 2019
Table of Contents
Independent Banker - November 2019 - Intro
Independent Banker - November 2019 - Cover1
Independent Banker - November 2019 - Cover2
Independent Banker - November 2019 - Table of Contents
Independent Banker - November 2019 - 2
Independent Banker - November 2019 - 3
Independent Banker - November 2019 - 4
Independent Banker - November 2019 - 5
Independent Banker - November 2019 - 6
Independent Banker - November 2019 - 7
Independent Banker - November 2019 - 8
Independent Banker - November 2019 - 9
Independent Banker - November 2019 - 10
Independent Banker - November 2019 - 11
Independent Banker - November 2019 - 12
Independent Banker - November 2019 - 13
Independent Banker - November 2019 - 14
Independent Banker - November 2019 - 15
Independent Banker - November 2019 - 16
Independent Banker - November 2019 - 17
Independent Banker - November 2019 - 18
Independent Banker - November 2019 - 19
Independent Banker - November 2019 - 20
Independent Banker - November 2019 - 21
Independent Banker - November 2019 - 22
Independent Banker - November 2019 - 23
Independent Banker - November 2019 - 24
Independent Banker - November 2019 - 25
Independent Banker - November 2019 - 26
Independent Banker - November 2019 - 27
Independent Banker - November 2019 - 28
Independent Banker - November 2019 - 29
Independent Banker - November 2019 - 30
Independent Banker - November 2019 - 31
Independent Banker - November 2019 - 32
Independent Banker - November 2019 - 33
Independent Banker - November 2019 - 34
Independent Banker - November 2019 - 35
Independent Banker - November 2019 - 36
Independent Banker - November 2019 - 37
Independent Banker - November 2019 - 38
Independent Banker - November 2019 - 39
Independent Banker - November 2019 - 40
Independent Banker - November 2019 - 41
Independent Banker - November 2019 - 42
Independent Banker - November 2019 - 43
Independent Banker - November 2019 - 44
Independent Banker - November 2019 - 45
Independent Banker - November 2019 - 46
Independent Banker - November 2019 - 47
Independent Banker - November 2019 - 48
Independent Banker - November 2019 - 49
Independent Banker - November 2019 - 50
Independent Banker - November 2019 - 51
Independent Banker - November 2019 - 52
Independent Banker - November 2019 - 53
Independent Banker - November 2019 - 54
Independent Banker - November 2019 - 55
Independent Banker - November 2019 - 56
Independent Banker - November 2019 - 57
Independent Banker - November 2019 - 58
Independent Banker - November 2019 - 59
Independent Banker - November 2019 - 60
Independent Banker - November 2019 - 61
Independent Banker - November 2019 - 62
Independent Banker - November 2019 - 63
Independent Banker - November 2019 - 64
Independent Banker - November 2019 - 65
Independent Banker - November 2019 - 66
Independent Banker - November 2019 - 67
Independent Banker - November 2019 - 68
Independent Banker - November 2019 - 69
Independent Banker - November 2019 - 70
Independent Banker - November 2019 - 71
Independent Banker - November 2019 - 72
Independent Banker - November 2019 - 73
Independent Banker - November 2019 - 74
Independent Banker - November 2019 - 75
Independent Banker - November 2019 - 76
Independent Banker - November 2019 - 77
Independent Banker - November 2019 - 78
Independent Banker - November 2019 - 79
Independent Banker - November 2019 - 80
Independent Banker - November 2019 - 81
Independent Banker - November 2019 - 82
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Independent Banker - November 2019 - 85
Independent Banker - November 2019 - 86
Independent Banker - November 2019 - 87
Independent Banker - November 2019 - 88
Independent Banker - November 2019 - Cover3
Independent Banker - November 2019 - Cover4
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