A banker wants to induct a new client, Corporate X, for the bank. His colleague in Risk taps a few keys on the Risk Portal…and lo! All the relevant details are immediately flashed…Corporate X’s banking history, credibility, the bank’s funding appetite and recommendations. The portal even calls out red flags such as a likely management shake-up (deciphered from social media); potential litigation and even industry headwinds.
Seems like a scene out of a Sci-fi movie? Welcome to the future, for this could be the likely scenario of the BFSI sector, thanks to Artificial Intelligence (AI).
AI is the ability of a computer or robot to perform a task that requires human intelligence – assimilating and processing data, making decisions, or challenging choices. Machine Learning (or ML) enables AI to self-learn and respond, using data it is exposed to (just like a human brain). Risk management is about using wide ranging perspectives for providing insight, oversight and challenge to bring balance to the efforts of the bank in driving towards its strategic goals. Banks and Financial Institutions are driving transformation initiatives to strengthen Risk Management performance…
