Finance lenders anticipate considerable gains in terms of efficiency with the rise of AI technology.

In 2017, Deutsche Bank’s CEO stated that robots would replace nearly half of his workforce in the coming years. At a similar time, the former Citigroup CEO predicted that approximately 30% of global finance jobs could disappear due to AI and robotics within five years. 

While these claims may not have become completely true, industry experts believe AI represents one of the biggest opportunities for the finance industry, to drive efficiency enhance automation, and deliver a considerably better customer experience. According to Bernd Leukert, the chief technology, data and innovation officer at Deutsche Bank, AI tech now lies at the core of their strategy. 

AI is well placed to tackle the challenges of legacy technology that many banks face and utilise the value of the data available. Other financial leaders highlight that while some feel the regulated conditions of financial services will hinder the uptake of AI, others believe it can help meet regulatory requirements, particularly those linked to financial crime. 

Mike Abbot, senior head of Accenture global banking practice, who has discussed with many lenders about their AI strategies, explains that banks are beginning their journeys, but the capacity of tech is growing at an accelerated pace every year. This means there are significant potential gains for those who decide to commit first. Abbot says that risk, compliance and enterprise are where the most impact is. Businesses are using AI today as a customer acquisition tool since banks can provide services in a more personalised way, customising solutions based on profiles built via AI.

Other businesses have emphasised how AI can assess multiple changes to laws and regulations, exploring enforcement and determining what is appropriate for an organisation. Consultancy group Capco has created a tool that identifies about 75% of the records a human would and is in the early stages of deploying the system or using regulatory change processes.

In other cases, Deutsche software engineers are applying AI to produce code more efficiently, increasing productivity for the overall business. The German finance lender is also testing AI to manage IT and HR queries, hoping to apply the technology to some client interactions. 

In investment banking, Deutsche is using AI to manage credit risk models and incorporate a broader range of non-financial-related factors, especially climate-focused measures. John Hinshaw, the COO at HSBC, explains that the bank is applying AI as an anti-money laundering solution in partnership with Google, which is now available to the financial market. 

HSBC and other financial leaders are optimistic about applying AI and the potential for greater gains with a new workforce prepared to embrace the opportunities available with AI. Finance leaders highlight that embracing AI shouldn’t be viewed as eliminating jobs but doing more with the same number of people and creating a more fun environment to work in.