Financial industry and artificial intelligence

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UBS announced that it will deliver personalized advice to the bank’s wealthy clients by using artificial intelligence (AI). UBS plans to roll out a digital service in Asia next April.

I think this is one of the example for financial institutions to go to “digital personalized marketing”  by artificial intelligence.  In future  personalized services by AI are one of the key strategic technologies in the financial industry. Let us consider how artificial intelligence are implemented and used in marketing of  financial industries more details.

 

1. data

This is a basis for the analysis to predict what financial products customers want.  According to this article about UBS, in the presentation by founders of Sqreem, they said that they crawl through a wide range of openly available, unstructured data. I would like to explain unstructured data. It means the data is not organized in a database as we usually see. So I assume massive amount data could be gathered automatically.  Data might be gathered in real-time basis so final outputs such as recommendations also might be provided in real-time basis. It is a dynamic process, rather than a static process.

 

2. algorithm

There is no disclosure about how calculations are done in details as far as I know. So this is my assumptions based on the article.  This might be one of the recommender systems. As the article says, this focuses on the behavior of customers.  Behavior of customers could be identified in deeper level and precise recommendations to individual customers could be  provided effectively.  In my thought,  this system might be on-line learning system, too. It means that algorithm could learn new things by themselves, could be updated based on stream data in real-time basis and adjust the change of customers’ preferences.

 

3. output

This is also my assumptions based on the article. The articles mentioned mobile phones and other digital devices.   I think recommendations might be mainly provided to individual customers through their mobile phones. Mobile phones could be personal interface against banks and financial institutions.  One of the biggest advantage of mobile phones is that customers preference could be gathered through interaction between customers and banks without any official inquiry to the customers.

 

This is not the end of story but the beginning of it.  As technology is progressed,  a lot of industries will try to introduce such kind of personalized recommender systems. This is marketing of digital era so that everyone can obtain the best products and services among a lot of choices. How wonderful it is !

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