Page 34 - GS231102

Views

Innovators need one standing of data is essential for financial institutions to
realize any return on their AI investments. So, how might
foot in the past to new fintechs procure big data from existing sources?

Like it or not, we have to play
win the future nice with legacy systems

Many fintech innovators have great visions for the prod-
ucts they build but forget that these solutions can't operate
in a vacuum. When a user hits a dead-end in an AI-pow-
ered self-service channel, a transfer to the bank or credit
union's contact center is typically in order.
To avoid requiring the customer or member to authenti-
cate or explain the issue again (which counteracts the in-
tended efficiency of AI), data from the self-service interac-
tion must be transferred to the live agent.
By Michael Boukadakis
ENACOMM To make that happen, the shiny new solution must tie into
the contact center's software … which usually is nowhere
nnovators understandably want to move at the near shiny and new. A standalone chatbot may offer a great
speed of light. Changing something that's existed customer experience—until a user needs to speak with a
for centuries, however, can take much longer than human being. An AI solution is only complete, therefore,
I building from scratch. Banking began in Babylon if it is integrated with retail banking's web of technology
as early as 1,800 BC, with moneylenders making loans. In channels, old and new.
Greece and Rome, banks accepted deposits, too.
What it takes to integrate
But as banking has moved from the ancient world to the Generally, directly integrating with other systems is not a
digital age, many aspects of the system have lagged be-
hind technological progress in other industries. To be suc- readily available option in financial services. Compliance
requirements, lack of relationships with core providers
cessful, fintech innovators must keep one foot in the past,
despite wanting to have both feet chasing the future. and the need for an abstraction layer (the programming
interface between a new application and the legacy operat-
ing system) stand in the way. So, how can these challenges
The concept of artificial intelligence, for example, is be overcome? Utilization of an open API digital gateway.
groundbreaking, but AI can't revolutionize anything
without data accumulated over time. Think of AI tech- In short, a digital gateway is a set of pre-negotiated APIs
nology like an engine; it won't run without fuel, which is
quality data. that functions like a toolbox full of the features that fin-
tech innovators need to bring their ideas to life—core in-
The importance of data can't be discounted tegration, speedy responses through caching, fraud con-
trols, and more partner APIs.
Consider a new company rolling out an AI-backed interac-
tive virtual assistant (IVA). The application may be flaw- Open APIs can help fintechs clear cost and time-to-market
lessly built, but unless data about specific users and use hurdles by providing pre-negotiated APIs and services,
cases is accessible to the IVA—securely, in real-time—the eliminating the need to find partners, strike deals, and
futuristic bot can't be at the customer's service. integrate with them. With an open API digital gateway,
tying into legacy systems is simple, and revolutionizing
All customer interaction information—from words used financial services is within reach.
to communicate with the bot to actions taken by the user—
should be stored by or for a financial institution, so that it So, fintech innovators, take heart: you indeed can mod-
can be analyzed and utilized in future interactions. This ernize an age-old industry, while helping its key players—
includes behavioral, transaction and preference data. banks and credit unions—unlock the revenue growth only
possible by staying ahead of the digital curve (see McK-
As customers or members communicate with the bot, insey Quarterly, https://tinyurl.com/pmzbjhh5). For both fi-
again and again, the virtual assistant is increasingly well- nancial innovators and institutions, speed to market with
equipped to respond to user requests. This learning loop technological advancements is a big part of what separates
means that the technology gets smarter over time, as the the winners from the losers.
collection of data grows.
Michael Boukadakis is the founder and chief executive officer of
The right data points are the ingredients for a worthwhile ENACOMM, a fintech enablement company (www.enacomm.net). To
AI-powered interaction. That's why collection and under- get in touch with him, email laurend@enacomm.net.
34