Wells Fargo Vice President and enterprise architecture said that the bank is looking prudently towards the various technologies like Machine Learning and Artificial Intelligence.
Wells Fargo and Other Banks now Look for AI and Other Technologies
Mike Telang said that the operating model of the banking sector is undergoing transitions though the business has remained the same. He further added that Wells Fargo is now focusing on the security, innovation and effective regulation.
He further added that the financial technology trends make a significant impact in the way banks operate depending on their level in the maturity lifecycle.
The Wells Fargo Vice President expressed that Artificial Intelligence and Machine Learning is critical to baking sectors performance. The big financial institutions and banks are required to find out if any of the AI solutions are used in the bank. The issue is that the implications are drastic if an erroneous algorithm is used. It is going to impact the business and customers in a big way.
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Telang said that there are challenges faced by Wells Fargo when implementing Artificial Intelligence and Machine Learning. Artificial Intelligence and Machine learning can help work around anti-money laundering and fraud. This is the reason why banks are adopting these technologies. However, these technologies come with their associated problems.
The Wells Fargo Vice President further added that the banks had tapped these emerging technologies. However, they still need to establish use cases which can facilitate the betterment of existing procedures and applications such as databases.
The banking sector is considering blockchain technology. Wells Fargo also wanted to adapt not to be left behind in case any problem occurred. Thus banks invested in the blockchain technology with the recurrent payment use case. However, he said that apart from that, they have not found any game-changing use case.
According to Mike, the technologies are like a double-edged sword for banks where they cannot accept or leave them entirely. They cannot go for all the use cases, and neither throws all, especially the use cases which impact customers.