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© 2016 International Business Machines Corporation IBM Confidential | Page 1

Bank to the Future

Vivek Bajaj

Vice President, Global Banking & Financial Markets

@vivekbajaj




Rise of

Fintechs











Are people who spend a lot

after 9pm

MORE LIKELY to overdraft?








Getting Started



IDC Financial Insights: Top 10 Global Predictions


IBM clients are leveraging a vast library of Cognitive API’s

Language

Speech

Vision

Data Insights

Coming soon Natural Language Processing

Machine Learning

Question Analysis

Feature Engineering

Ontology Analysis

5

Question and

AnswerDirect responses to

users inquiries fueled by primary document

sources

Relationship

ExtractionIntelligently finds

relationships between

sentences components (nouns, verbs,

subjects, objects)

DialogEnable applications to use natural language

to respond and interact

with users

Alchemy

LanguageAnalyze text to

understand sentiment, keywords,

entities, high-level concepts and more

Personality

InsightsUnderstand and

engage users on their own term based on

their personalities and values

Concept InsightsLocate relevant

documents that may not directly mention

your query

Concept

ExpansionMaps euphemisms or

colloquial terms to

more commonly understood phrases

Language

TranslationIdentify language text

and dynamically

translate to another for specific domains

Tone AnalyzerUnderstand emotional, social and writing cues

from input text with suggestions for improvement

Document

ConversionConvert documents to HTML, Plain Text, List

of Answer Units

needed by Watson Services

Natural Language

ClassifierEasily create machine

learning, natural language interfaces

Retrieve and RankCombine search and

machine learning

algorithms to enhance information retrieval

Alchemy VisionIntegrate image

cognition to understand a

picture’s content and context

Visual InsightsEnhance customer

view through insights

extracted from analysis of online

photos and videos

AlchemyData

NewsIntegrate image

cognition to understand a picture’s

content and context

Tradeoff

Analytics

Make better choices under multiple

conflicting goals with smart visualizations

& recommendations

Visual

Recognition Analyzes the visual

appearance of images or video

frames to understand what is happening

Speech to Text Provides highly

accurate, low latency speech recognition

capabilities

Text to Speech

Synthesizes

natural-sounding

speech f rom text

Author ExtractionKeyword Extraction

Feed Detection

TaxonomyFace Detection

Answer GenerationQ&A Qualification

Knowledge GraphRisk Stratification

Policy Identification

Knowledge CanvasFusion Q&A

Emotion AnalysisCase Evaluation

Entity ExtractionLanguage DetectionImage Link Extraction

Text ExtractionStatistical Dialog

Concept Tagging

Sentiment AnalysisImage Tagging

Answer Generation

Knowledge StudioVideo Augmentation

Usage Insights

Factoid PipelineDecision Support

Decision Optimization

Criteria ClassificationKnowledge Canvas

Easy Adaptation


Predictive and Cognitive analytics can be woven into every customer

interaction to personalize and enhance the customer experience…

26

Customer

Segmentation

Action

Clustering

Personality

Analytics

Sentiment

Analytics

Image

Recognition

Next Best

Action

Predictive Analytics Cognitive Analytics

Internal Data Syndicated Data Social Data Device Data


Bradesco bank is succesfully using IBM Watson to drive agile and

enhanced customer care & service

Number of incoming calls from branches

AverageTime of Conversation

Average Time of Waiting

Wrong incoming calls

Number of emails

Training Costs

Incoming calls trasfered within levels

SLA

Satisfaction rate (internal and external customers)

Intelligent

Assistant

Enablement

Self Service

Quantitative benefits

Qualitative benefits


Mizuho Bank leverages IBM Watson to enhance personalized client

engagement in branches

• Pepper robots across take advantage of Watson's natural

language and other cognitive capabilities to analyse information

from the Mizuho website as well as customer-specific information

• This enables personalised interactions so that customers can

have a natural conversation during which their words as well as

their gestures and expressions, are understood

• Watson enabled pepper robots will free up human staff to focus

on higher value work and the bank also plans to tap Watson to

improve its mobile app and ATM services.

"The insights gained from our collaboration with Watson - and

customer interactions with our branch robots - will help us further

improve our customer service and drive innovation in the financial

space - Nobuhide Hayashi, CEO and president, Mizuho Bank

Customer Insight For Banking

Generate segments based on behavior

Identify behaviors correlated with account

activity

Predict future life & financial events

Use insights to drive what is presented to clients

Deeper understanding of customers enables better decisions

Increase cross-sell and wallet share

Improve customer service and reduce churn

Drive revenue growth through better offers

SPENDING

ACCOUNT FUNDING

INTERACTIONS

$

What

Where

When

Amounts

Frequency

Regularity

Online & Mobile

Call Center

Branch & ATMBehavior BasedSegmentation

Prediction of Financial EventsKey Business Metrics


EARLY RESULTS ANALYZING CLIENT DATA

PREDICTING CASH FLOWS &

OVERDRAFTS

PREDICTING LIFE EVENTS

94% 9

PREDICTING CHURN

different life events predicted with 95-97% accuracy

BBCI Delivers High Impact Results

improvementover existing models

50%

accuracy a week ahead, 87% accuracy 4 weeks ahead

improvement, eliminating delivery of irrelevant offers to 3.6 million customers

TARGETING OFFERS

91%


A leading US Financial Services firm uses IBM Cognitive solutions

to enable ‘segment of one’ engagement’ with clients

Interact in natural

language

Communicate via text

and/or voice

Answer questions with

confidence

Seamlessly handle processes

and transactions

Possess context

Offer insight-driven

recommendations

Learn and adapt

Conduct conversationsPersonalize every interaction Provide assurance

WatsonAnalytics


Wealth Management – Wall Street Journal – Sept 2016

http://blogs.wsj.com/moneybeat/2016/09/09/its-not-creepy-its-the-future/

http://blogs.wsj.com/moneybeat/2016/09/09/its-not-creepy-its-the-future/


Cumulative Effective of Regulations on Cost Structures

Citigroup has hired about

10,000 people in regulatory

and compliance-related roles,

even though its overall

employment number has

fallen about 20,000 over the

past two years…

Wall Street Journal”

“

Dodd Frank

CCAR

AML III

MiFID

RegNMS

BCBS 319 Basel III

FRTB

IFRS 9

Solvency

BCBS 239

IASTop 50 Banks have an estimated 5,000 to 15,000 employees focused on managing regulatory change and compliance.


Regulatory Compliance empowered by Cognitive Computing

Helps compliance specialists streamline the identification of potential obligations and controls required to address constantly changing regulations and manage the lifecycle of implementing those controls

Regulation Ingestion

Obligation Lifecycle Management

3

1

24

Natural Language Processing

Document Parsing

Machine Learning Obligation and Control Identification & Mapping

34


Cognitive computing to explore internal and external information to

provide a comprehensive view of companies

MVP

• Comprehensive insights

from internal & external

sources

• Entity recognition analysis

• Solution recommendations

• Benchmarking and financial

performance

• Real-time news

classification and monitoring


Getting Started

Data & Analytics

Inergy talking dinner presentatie Vivek Bajaj IBM