The AI Revolution in Banking: Risks and Rewards
There has been quite a lot in the news lately regarding the use of models, algorithms, AI, and evolving technologies in the banking industry. But there is more to it than just AI – financial institutions are increasingly using big data in their operations.
This includes information that is not traditionally considered financial in nature. It could be information from a consumer’s social media profile, web surfing habits, and more. And this information is available from an increasing number of third parties.
The benefits are obvious – more effective marketing, more efficient underwriting of credit, and just an overall sense of better knowing the customer. But there are two sides to every coin. There are significant risks to using AI and non-traditional data when dealing with customers and prospects.
The regulatory agencies (as well as Congress and the Administration) are keenly focused on these risks and are looking very carefully at what the industry is doing. We have fintechs to thank for many of these advancements, but they are not regulated the same way as traditional banks, thrifts, and credit unions, so usage of these exciting tools and strategies must be monitored carefully.
In this webinar, we’ll discuss these concerns and risks, so that you can properly monitor and establish controls for these technologies so you can best manage regulatory expectations as you succeed.
