A defining moment of exponential impact: Building trust with banking, cloud and AI

Share this post:

Data, data, everywhere, but how in fact to THINK. If you’re the ancient mariner of Samuel Coleridge’s epic poem, then you know this rhyme another way, but if you’re in the banking and finance industry, then the words make total sense. As IBM CEO Ginni Rometty mentioned in her 2018 CEBIT keynote address, it is a moment of “exponential impact.” Yes, the value of networks is equal to the square of the nodes that gave rise to platform companies and big data. But the significance of this era is not about size. As companies take data and combine it with intelligence, cloud, and more, they get competitive advantage through “exponential learning” as they outlearn one another.

Rometty explains that this era of innovation is underpinned not by just any cloud, but rather a cloud that is extendable, built for data anytime and anywhere, and secure to its core. She shares how many industries are taking advantage of this moment, including financial services industries. By 2019, banking’s spending on cloud is expected to approach USD $100 billion with cloud-enabled workloads of top-tier banks expected to double . Rometty describes three financial services companies combining data with cognitive capabilities and cloud. These companies are using data to develop an understanding of their clients, predict challenges that lie ahead of their customers, and make smarter business decisions by managing and mitigating economic and financial risk. Here’s a quick synopsis of how these companies are partnering with IBM:

  • Westpac Group, one of Australia’s major banking organizations, partnered with IBM to bring IBM private cloud into its Hybrid-Platform-as-a-Service (HPaaS). This new cloud environment delivered secure and premium services to more than 13 million customers by making it easy to deploy applications across the group and deliver new customer solutions to market faster, while also meeting regulations for data protection and privacy. Westpac systems and applications can be updated on the go, in the style of mobile phone apps; and the dual cloud sites mean systems outages should become increasingly rare.
  • JP Morgan Chase ran a public cloud infrastructure that managed trading transactions in a “large-scale and complex” environment. The risk modeling application makes use of computing power on demand, especially during high-volume periods. Cloud is a key element of an extensive overhaul of technology operations that will make developers more efficient at employing technologies such as machine learning and microservices that will also make it easier to run applications on any platform.
  • Crédit Mutuel combined multiple technologies including cloud, Watson and advanced cybersecurity. With 12 million customers, Crédit Mutuel was looking for a way to fundamentally change how its customer relationships are developed and maintained. Crédit Mutuel will be able to reassign 200,000 working days annually towards training, upgrading advisors’ skills and expanding sales activities. With IBM Cloud, Crédit Mutuel will also be equipped to manage risk and compliance issues such as anti-money laundering and financing of terrorism. Tighter controls will also be in place to monitor business and client identification, in order to provide a secure experience for its customers.

IBM Cloud is trusted as the fastest, most secure journey to cloud by thousands of enterprises, across many industries because it’s extendable, ready for data anywhere anytime, and secure at its core.  But Rometty explains that it’s also principles around artificial intelligence that will differentiate companies because this exponential moment is underpinned by trust: “Society will determine companies it trusts.” She articulates IBM’s tenets for trust and transparency as principles we should all live by and applies these principles to artificial intelligence as well as other technologies. She states:

  • The purpose of all these wonderful technologies is to augment, not replace, humans.
  • Data belongs to its owner and creator.
  • AI and new technologies must be transparent and explainable.

As Rometty believes, this is one of those rare defining moments in history for companies and individuals to decide their collective future with cloud, AI and data.  And society will judge how companies are viewed based on their stewardship of these technologies — how they use them not only for the betterment of their business, but also for the enhancement of the people their businesses serve.

Learn more about cloud for banking and financial markets.

More Cloud stories

Why shell companies are so risky (and hard to spot)

Shell companies and the hidden threat of entity risk While not inherently illegal, shell companies have been getting a lot attention recently for the role they play in illegal activity. This makes sense, as two of the legitimate uses of shell companies are the ability to shield owners from litigation and as a vehicle for […]

Continue reading

Why QIIB trusts IBM Safer Payments for cross-channel fraud prevention

Fraud prevention is about who you can trust. For financial institutions, it’s about understanding the relative risk of a customer, a merchant and/or a transaction, as well as hundreds of different factors including location, amount, device, etc. But for customers, both actual fraud attacks as well as incorrectly blocked legitimate transactions represent a breach of […]

Continue reading

Is “openness” the next big word in financial crime?

About a month ago, I attended the IBM RegTech Summit in London, which brought together a mix of financial services professionals, regulatory experts and technologists. But the terminology was markedly different than most financial crime and compliance events I’ve attended. With terms like “AI,” “machine learning,” “cloud” and “innovation,” you could make a successful run […]

Continue reading