Tony BoobierAI and the Future of Banking
Sprecher: Dixon, Walter
TONY BOOBIER is a former IBM worldwide executive focusing on financial services. He has over 30 years of experience and is a frequent writer and international public speaker. Tony possesses a deep understanding of how to apply business intelligence and analytics to enhance the management and delivery of products and services in numerous industries. A recognised expert in customer analytics, risk and operational effectiveness, he is a strong advocate for enterprise-wide analytics to improve service and reduce cost. He holds professional qualifications in engineering, marketing, supply chain management and insurance.
Acknowledgements xv
About the Author xvi
Introduction xvii
Chapter 1 Prologue: Why Banking? 1
Summary 1
Introduction 2
What is Banking? 4
What Do We Mean by 'Money' Today? 7
A Cashless Society Increasingly Emerges 8
Key Banking Functions 10
Future Jobs in Banking 14
Conclusion 17
References 18
Chapter 2 Imperatives in Banking 21
Summary 21
Introduction 21
Strategy and Imperatives 23
Strategy 23
Business Imperatives 24
Current Imperatives in Banking 24
Comparable Imperatives in the Retail Industry 26
Comparable Imperatives in the Telecom Industry 27
Comparable Imperatives in the Healthcare Industry 29
Future Imperatives in Banking 30
Greater Customer Centricity 30
Becoming Truly Digital 31
Completely Accepting Technological Change 33
Reimagining Banking 33
Reinventing Risk Management 35
Conclusion 36
References 37
Chapter 3 Data and Analytics Primer 39
Summary 39
Introduction 39
Data Management and Analytics 42
Data Management 42
The Hierarchy of Analytics 43
'Next-Generation' Cognitive Analytics 45
Extracting Value from Data 46
The Importance of Location Analytics 50
Conclusion 51
References 52
Chapter 4 Key Elements of Banking Analytics 55
Summary 55
Introduction 56
Office of Finance Management 56
Performance Management and Integrated Decision Making 58
The Key Elements of Banking Performance Management 59
Customer Analytics 61
Customer Insight 61
Credit Ratings 65
Branch-Specific Campaigns 66
Impact of Social Media Campaigns 67
Relationship Pricing 69
Client Servicing 71
Risk Management 73
Risk Scenario Analytics 74
Fraud Detection 75
Regulatory Compliance 76
Risk Management and AI 76
Operational Efficiency 77
IT Cost Transparency 78
Branch Performance Management 78
Contact Centre Service 80
Payments Monitoring 82
Mortgage Tracking 83
Sales, Compensation and Commission Management 83
Financial Markets Risk and Trade Monitoring 84
Analytics in Portfolio Management 85
Derivative Markets 86
Conclusion 87
References 89
Chapter 5 Machine Learning, AI and 'Apps' 93
Summary 93
Introduction 93
Theory and Practice of Machine Learning 95
Apps and Their Usage 96
Data Visualisation 101
Voice Recognition and Voice Assistants 102
Visual and Facial Recognition 104
Thumbprint Recognition 106
Palm Vein Recognition 107
Wealth Management Systems and Apps 107
The Biometric Moral Argument 109
Conclusion 111
References 112
Chapter 6 AI and the Importance of Brand in Banking 115
Summary 115
Introduction 116
Brand Value and Equity in Banking 117
Millennial and Gen Y Brand Expectations from Bank Brands 119
Branding Expectations of Generation Z 120
Branding Expectations of Generation X 121
Branding and Customer Experience Interlocked 123
Branding and Human-Centred Design 124
To Brand or to Debrand? 125
Banks Will Use AI to Beco
