Cognitive finance: Key insights from Sibos 2016
If you can’t make it to Geneva, Switzerland, this week to hear about the state of the financial services industry from leading experts at Sibos 2016, don’t despair. Here is a preview of the most important conversations that will be happening there.
One of the hottest topics this year is how cognitive finance is transforming the financial services industry. In short, cognitive business allows financial services institutions to process, analyze and gain insight from large amounts of data, which wouldn’t be feasible by human power alone.
With the theme of “Transforming the Landscape,” this year’s keynotes and sessions will focus on the disruption in the industry and where financial services are headed. Each day’s sessions, keynotes and events will cover a different topic, such as disruption redesigned, the modern organization, man-machine convergence and platform cooperation.
The following are three key insights about cognitive finance that will be discussed this week at Sibos:
1. Cognitive banks are the future of financial services
With cognitive banks becoming the norm, the entire financial industry will shift. This means that cognitive technology will be used for all aspects of banking in conjunction with humans to gather new insights and make evidence-based decisions.
Of particular benefit to the financial services industry is the ability of cognitive technology to detect fraud, mitigate risk and predict customer actions. As a result, all aspects of banking will be transformed, from operations to compliance security and engagement. During her opening keynote in the “Cognitive business and future of financial services” session, Ginni Rometty, the chairperson, president and CEO of IBM, will provide additional insight into what cognitive banks look like and how banks can differentiate themselves.
2. Cognitive business systems make customer service more personal
You may assume that cognitive technology makes financial services less customer-focused and personal, but the opposite is actually true. As this technology handles much of the transactional nature of the banking process, customer service representatives can spend more of their time focusing on the customer.
Cognitive business systems also provide customer service representatives with information on customer preferences and behaviors, enabling them to suggest new products and services that can help the customer meet his or her financial goals.
3. Robo-advisors provide customized online personal service
Though it may seem like online advisers would provide generic advice, robo-advisors powered by cognitive business systems do anything but. Experts expect this type of technology to be especially critical in wealth management. Robo-advisors can interact with humans to access deep data, analyze the data and then make evidence-based recommendations, instead of possibly allowing biases to cloud the advisement session. Additionally, robo-advisors can quickly analyze large amounts of structured and unstructured data, even if it’s self-contradictory. Paolo Sironi, a thought leader in wealth management investment analytics at IBM, will address this topic as part of the panel, “Enabling the investment management’s next era: The rise of the robo-advisor.”
In an industry that’s changing rapidly, cognitive finance is set to have a major impact. By learning from key leaders who are set to speak at Sibos 2016, your company will be poised to effectively leverage this technology to increase service and revenue.