Added Monday 10 April 2017
Rethinking Finance with IBM Watson
Historically, artificial intelligence (AI) in the finance sector has been limited to algorithmic systems that can trade stock at lightning speeds. Yet such programmes, designed to exploit tiny differences in value, have little understanding of any wider business context.
“The challenge for finance is that information that could be relevant to any financial decision could be scattered across a huge number of different places”, says David Robson, Watson Director of Financial Services in Europe. “Finance is not a closed system – it’s affected by world events, by national legislation, even by the emotions of the people involved. That needs far more than rapid calculation – it needs a system that can learn and understand”
This short video explains how IBM Watson absorbs human learning and uses it to support business processes - interacting with individuals to improve and personalise the customer experience, and taking the ‘work’ out of paperwork.
Watson at work in the finance sector
Traditionally, personal banking services (‘wealth management’), have only been available to the most affluent customers. Watson Explorer can research ahead, giving bank staff and wealth managers a picture of their client’s personality, comfort with risk, financial status and financial objectives – all delivered on a single screen.
Improving the accuracy of insurance risk calculation is dependent on data – improved premiums for drivers prepared to upload their driving behaviour is one novel, but limited approach. Watson could provide massive amounts of data and the ability to reveal diverse insights by cross-referencing huge data sets, including health.
Tax and Pensions:
As Watson becomes more familiar with areas of finance, new markets such as tax and pensions will open up, ensuring customers get the best deals at the right time, and managers have the right information available to make key business decisions with confidence.
Mortgages and Loans:
Decisions over how much the business is willing to lend to an individual or business are complex and with so much at stake, emotions can run high. Watson can analyse customers’ needs by using natural language processing during conversations over online chat tools, drawing out relevant information to help agents better assist their customers. Watson can also use its Tone Analyser to assess if a customer is becoming frustrated or upset – adjusting its responses to match.
Want to explore this topic in more detail?
Bringing together in-depth insight and real-world examples from a number of specialists within the financial services sector, this White Paper explores how you can:
- Tackle digital disruption – driving deeper customer engagement and innovating to stay competitive
- Create value for shareholders by focusing on areas that offer profitable growth at low cost and risk
- Meet risk and regulatory compliance challenges head on