I recently had the pleasure of giving the opening remarks at the 2015 TMG Executive Summit. This year’s summit, which focused on key industry topics including cyber security, innovation and the future of payments, was held July 27-29 in Vancouver, Canada.
In my opening remarks, I explored the question: What will it take to thrive in the future? Before an audience of financial institution (FI) leaders, I worked to expand minds wider and broader than ever to the potential of exponential technology by offering a glimpse into the possibilities of innovation in the financial sector.
Exponential technology takes many forms. Here are a few with the greatest potential to drive innovation within our industry.
Artificial Intelligence (AI)
AI replicates processes seen only in the human brain – except it does so with infinitely more processing power. It’s the mashing together of the power of the human brain with the power of computers.
With AI, we can make decisions incredibly fast, in real-time even, using torrents of data from thousands of sources. One of the great outcomes of AI is “machine learning.” Just as the human brain uses memory to improve outcomes for its host, machines can learn from data of the past to produce a better outcome for the future.
Machines not only can think; they can predict. And this is how financial services will use AI most effectively. The ability to predict a fraud ring’s next move, for instance, will be especially crucial as the payments industry works to stay one step ahead of criminals. The ability to predict a consumer’s next move will be crucial to providing a personal, valuable, customized experience.
Quantum Computing
Quantum computing puts AI’s application to business on hyper drive.
The Big Data revolution has given quantum computing a very real reason for being. Ninety percent of the world’s data has been created in the last two years. To make sense of it – to truly tap its potential – we need computers capable of performing billions of computations simultaneously. Quantum computers perform calculations that conventional computers would take more than the life of the universe to complete.
For FIs, the Big Data revolution is all about satisfying the consumer desire for hyper-personalization. As consumer expectation for hyper-personalization naturally ramps up, decision makers will need more and faster data analytics to meet that demand. This is where quantum computing is likely to come in.
Watch for next month’s post, in which I’ll talk through virtual and augmented reality, as well as robotics and sensors, and their likely impact on the reshaping of the financial services industry.