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Acknowledgement
Abstract
Under the impetus of regulatory constraints, banks are historically rich Page | 6
players with their data: the ability to exploit data in favour of
operational efficiency or customer experience has thus become a major
challenge in taking share of market. Historical banks are now facing
several types of actors taking advantage of data and artificial
intelligence:
FROM ONE SIDE...THE FINTECHS...
They take the position of broker of the customer relationship for new
services such as aggregators (Bankin 'etc.), budget tools or brokerage
... They offer innovative banking services, simpler and tailor-made,
possibly in partnership with traditional banks (savings with Yomoni or
AtomBank, life insurance with Advize or FundShop ...).
ON THE OTHER HAND,THE GAFAMI, AND MORE
GENERALLY THE GIANTS OF THE WEB
They nibble for several years, slowly but surely, the strongholds of
banking services. Their positioning gives them the advantage of
offering innovative services through the exploitation of their own
customer data, and via their technological assets (control of Artificial
Intelligence, devices, customization of offers etc.).
The intelligent personal assistants, Amazon Alexa and Google Home
besides, could pre-empt little by little the customer interface. The
account consultations and bank transfers can now be performed by
these interface IAs. You need just to say "Alexa, I want to make a
money transfer". Through these technologies of voice recognition &
understanding of natural language, customer knowledge is thus
captured by the giants of the web, who will be better able to offer
services that meet the needs of users ... to the detriment of traditional
banks.
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In the near future, new players in open banking will benefit from
market opening thanks to the European DSP2 law and the provision of
banking information. Secure communication channels will enable the
provision of account information, the provision of API by traditional
banks is planned for September 2019. Just like the recent
transformations of the energy world, European reflections tend
therefore to intensify the competition of the financial services and the
emergence of new business models via the exploitation. of the data.
The reason? Users of the 4chan forum sent him thousands of dubious
messages, which Tay understood in all innocence. Some will say that
Tay's drama is comparable to that of a child with great potential but
who has received an abject education. AI can be considered a
formidable weapon if a malicious process interferes with its learning
dynamic.
In this regard, four main types of threats against AI are the news:
The poisoning, like Tay, where the attacker tries to manipulate the
system by injecting malicious data during the learning phase.
The escape, where the attacker manipulates the input data to deceive
the AI during the prediction phase
Inference, where the attacker understands the model governing the AI
to know how to divert it (example: the Iphone X is unlocked using a Page | 13
mask)
Theft of data, where the attacker manages to get his hands on the model
generated by the system and its behavior, which allows it to grab
unplanned data or even to deduce the data used during learning
To make the AI system more robust, the minimum-security measures
remain fairly simple, such as moderation and filtering of input or output
data from the system. There is also a need to focus on securing the
infrastructures that support these systems (Smart Lab platforms,
production systems, etc.) and protecting the data that pass through
them, especially if SaaS services are used. These initial measures will
be supplemented by risk analyses and intrusion tests to ensure that
security needs are met.
Specific measures make the compromise of the system even more
complex, such as defensive distillation (combination of two systems
making the model more robust) or masking gradient, or even adversial
examples (data created specifically to defeat the model), to harden
model and make future compromise attempts more complex.
Finally, monitoring must be backed up, particularly on the search for
attempts to modify the input data, or drift of the model during the use
phase, etc.
V. ARTIFICIAL INTELLIGENCE IS THE
SYNONYM OF JOBS REDUCTION?
By drastically reducing management costs by automating low value-
added tasks, while improving customer satisfaction and risk Page | 14
management, AI solutions become essential. The replacement of the
activities of human operators is then undeniable, as illustrated by the
gradual shift of contact (physical) to digital contact. It is therefore
natural to wonder about the future employment of employees of the
bank. Are we converging on a drastic reduction in the number of posts,
in favor of Artificial Intelligence?
AI FIRST OR HUMAN FIRST?
It is first necessary to remember that AI cannot exist without a human
operator. Although it is synonymous with breaking current practices,
its degree of maturity is still low and a complete replacement of human
activities by AI remains in the realm of science fiction. In addition, new
regulations, such as the GDPR of May 25, 2018, reinforce the
regulation of uses and thus limit their potential.
In the coming years, the AI may allow the advisor to free up time to
better deal with complex topics where his "empathy" and "abstraction
ability" will be key. Relieved of repetitive tasks of analysis of
supporting documents, assisted in the detection of fraudulent
transactions, benefiting from automatic and real-time reports on their
perimeters, the collaborators will naturally focus on the tasks with
higher added value. For example, the IA will refocus the advisor on
structuring advisory and decision-making tasks: less administrative
management and data analysis, more customer support, thanks to the
support of artificial intelligence solutions.
This is for example the challenge that is embracing the post office by
marrying the digital and proximity of 100,000 factors with the French:
a mixed model where historical assets, in this case human, are
reinvented thanks to the AI rather than replaced.
From a customer perspective, we are betting on the growing need to be
able to deal with "real advisers" on complex needs. I do not necessarily
want my bank advisor to make a transfer ... but I wish he could really
spend time on my real estate purchase projects. The 100% AI will not
necessarily be a good strategic choice! After the buzz effect on the AI, Page | 15
organizations that succeed will be those that will combine the power of
AI and the richness of human proximity.
AI IS A SYNONYM OF EMPLOYMENT OR MUTATION
DISAPPEARANCE?
AI will be a vector of change and not of job loss if and only if the
players in the banking world do not turn their backs on this trend. The Page | 16
previous technological revolution has shown that many industrially
dynamic countries (high employment rate of workers and technicians
in particular) are the countries that have been at the forefront of
robotization (Germany, Japan, Korea ...) and not those who have turned
their backs. In concrete terms, these countries have observed a decrease
in the number of jobs per unit production chain ... but a multiplication
of factories and production chains in these countries, now in total a
significant employment.
The necessary skills and typologies of jobs will evolve very gradually
in two dimensions: technical skills (data-science) and human skills
(proximity and customer relationship). But this will not happen without
a deep support of employees ... and this for all categories of jobs.
TO THE CONSTRUCTION OF A WINNING-WINNING
RELATIONSHIP
Banks to accompany their employees to make them work in perfect
cooperation with these new technologies. This support will be win-win:
the employee will have fewer daunting tasks while allowing the bank
to increase its profitability.
To do this, training plans and skills upgrading advisers have long been
on the agenda of US banks, to enable them to understand the benefits
of these solutions and possible man / machine synergies. One of the key
objectives is to make operational employees realize that the AI
advances made by the company do not mean a decline in activity, but
rather an opportunity to focus only on activities with high added value.
An interesting approach envisioned by some mutualist groups is to
validate only the uses-cases explicitly approved by the collaborators.
CONCLUSION
And if we look a little more on the cases of uses back-office reputed
less noble for the business and the data scientists, but sources of fast
and first-rate gains (automation and signalling of the efforts of Page | 17
compliance, scoring / filtering upstream of credit applications, fraud
detection ...)?
And if we structure ourselves to be able to really master the
construction, learning and life of AI algorithms consistent with the
realities, capacities and skills of complex banking IS (and their
evolution)?
"Developing a model of AI is not complicated ... to make it fall
sustainably into a complex IS."
And if we finally managed to find simple and adapted answers to the
thorny questions of Management, Quality and Data Governance ... by
making tangible the shortfalls in real use cases rather than choosing
a priori magic tools for outsource the problem.
And if the next Vivatech could demonstrate how you have visibly
improved the customer / collaborator experience or boosted your
performance through AI core business ... rather than a fireworks
startups - although often brilliant - but we have sometimes find it hard
to understand how they contribute to your differentiators of
tomorrow?