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Artificial Intelligence for Consumer Banking

July 28, 2020


The advent of artificial intelligence (AI) presents exciting opportunities for application across a wide variety of industries. From uses in healthcare, finance, and autonomous vehicles, artificial intelligence is likely to alter many aspects of our day to day lives. While the term itself is somewhat ambiguous, artificial intelligence is generally used to refer to any form of computation or machinery that is able to process information beyond simple algorithmic processes. Rather than simply following a coded pattern to solve problems, machinery and computers equipped for artificial intelligence use external information to dynamically adapt to changing environments in order to best manage the tasks and goals that they have been assigned. One of the most frequently cited examples of artificial intelligence is seen through autonomous vehicle systems where the system continuously intakes information from the environment in order to safely and effectively drive the vehicle.

Artificial intelligence has been embraced by a wide variety of industries including most recently the consumer banking industry. The Royal Bank of Canada announced on July 23, 2020 that they have partnered with local Toronto AI research institute Borealis AI to build an innovative new system intended to streamline consumer banking operations. The system is designed to analyze millions of consumer transactions and records every day in order to better understand consumer behaviour, provide more efficient customer support, and create bespoke customer solutions. Additionally, the platform is capable of running complex simulations that will assist the bank in understanding potential issues and areas of concern. The Bank hopes that through their new system, transactions can be handled more reliably and efficiently while minimizing the hassle of customer service for their retail customers.

In addition to the many benefits for the customer, RBC’s new platform will also provide key insights into consumer behaviour by analysing large scale patterns in customer spending and financial management. The Bank hopes that these insights will assist in deploying new customer solutions with improved efficiency and speed. This in turn will ensure that the Bank is well positioned to provide a competitive retail banking experience to its consumers. In order to ensure that the delivery of this service is as seamless as possible, RBC and Borealis AI have also partnered with Red Hat and NVIDIA to provide a smooth launch. The implementation of RBC’s platform represents another step forward in the continuous march towards an AI driven future. The platform represents just one of the countless applications of artificial intelligence to our every day lives.

Author: Aryan Pour-Bahreini

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