Kerri Connolly Director Partner Development, One Commercial Partner Group
Dec 05,2020

Fintechs shape the future with AI

woman walking past the Toronto bank

Trustworthy artificial intelligence in finance and technology

This Microsoft blog post explores the impact and opportunity artificial intelligence represents for fintechs and financial institutions in Canada.

In 2020, all industries, including financial services companies, were compelled to accelerate their digital transformation. Private and public sector organizations can modernize and accelerate their financial management—how they transact, collect, and use data—with compliant cloud artificial intelligence (AI) solutions.

AI in Canadian financial services

Fintechs have emerged with AI solutions that optimize operations to financial services companies. Banks, credit unions, insurers, payment tech providers, and investment firms all use AI to make more informed choices. They use intelligent agents, modern apps, and machine learning to continuously improve their customer experience and offers.

Microsoft sponsored IDC research in April 2020 exploring the challenges that Canadian financial institutions face with AI and how they try to address them. Download the IDC study, “Canadian Financial Services: Trends, Challenges, Successes” whitepaper here.

Five key findings summarized

Driving digital transformation

Fintech partners specializing in AI can help “fill the gap” at these financial organizations, complementing their internal technical capabilities with certified and trusted subject matter experts. From combatting fraud and automating workflows to managing risk—these partners drive immediate, incremental improvement.

“AI is being used right now, by the majority of Canadian financial services organizations, in key operational areas: customer experience, modernization of core infrastructure, risk, product and service development, anti-fraud, and employee productivity.” – IDC

Areas where AI delivers

When asked where and how they use AI to generate dollar-quantifiable ROI, Canadian financial service decision-makers reported the following areas:

Source: IDC study, “Canadian Financial Services: Trends, Challenges, Successes” 2020

Mordor Intelligence estimates AI in the global Fintech market at USD $6.67 billion in 2019 with an expectation to reach USD $22.60 billion by 2025. (source)

What financial institutions value most

Financial institutions run on trust. Microsoft partners provide fintechs with a unique, powerful, and proven vehicle of differentiation, starting with the security, privacy, and compliance measures Microsoft adopts. The Microsoft Trust Center offers extensive information and resources around managing compliance in the cloud.

Trustworthy AI

Those practices and efforts are all part of trustworthy computing, which represents a critical component of Microsoft’s customer promise and applies to AI. Canadians expect their financial services providers, including fintechs, to protect their security and privacy and to apply AI (like any technology) ethically. The Microsoft AI practice development playbook offers a detailed definition of trustworthy AI, outlining six core principles:

  1. Fairness – AI solutions should treat all people fairly and not affect similarly situated groups in different ways
  2. Reliability – AI solutions must perform reliably and safely within a clear set of parameters and respond safely to unanticipated situations
  3. Privacy and Security – AI solutions must be secure and respect existing privacy laws
  4. Inclusiveness – AI systems should engage and empower people and use inclusive design practices to eliminate unintentional barriers
  5. Transparency – People should know how AI systems work and how they interact with data to make decisions
  6. Accountability – Those who design and deploy AI systems must be accountable for how their systems operate

Commercializing AI

Microsoft partners are critical to modernization in the Fintech space. They help financial services organizations overcome their data and process issues to realize the benefits of AI.

To identify AI opportunities in your practice or application, follow this process:

1. Envision AI

Start with your existing customer base. Help customers see the many possibilities of AI. You can achieve this crucial step by identifying in their roadmap the AI tipping point– where AI becomes part of the daily operations and the benefits that result from it.

2. Implement AI

Whether in sandbox or a pilot project, work with your customers to integrate an AI solution using either pre-built AI APIs or developing custom solutions. Doing so deepens the customer experience and adds to the longevity and profitability of your customer relationships.

3. Deploy AI

AI solutions are complex. Customers often lack the necessary internal technical resources to support them. Providing support for AI solutions creates a recurring revenue for you. Without your AI support services, how will your customer cope if something goes wrong?

Join the AI revolution! Download the Microsoft practice development playbook for a comprehensive guide to building an AI specialty.

Innovation in action

Let’s close this post with some examples of Microsoft partners enabling organizations to innovate and achieve benefits with AI.

Finastra creates new era of fintech using Microsoft machine learning and analytics tools -> Discover how Finastra uses Azure to elevate its open innovation platform, FusionFabric.cloud, enabling the fintech ecosystem to develop on top of its trusted core solutions via open APIs and access to datasets. By forming a close working relationship with Microsoft, Finastra developers and fintechs can develop and launch new, innovative machine learning and AI-driven solutions in weeks, instead of months, in order to help customers optimize results. Read the Finastra success story Read the Finastra success story

Analytika designs and implements a holistic well risk analysis platform using AI -> Analytika develops fully integrated advanced analytics solutions that transform industrial solutions. Analytika partnered with Closure Liability Management to develop a Wells Risk Analysis solution. This enables Closure to use AI and the cloud to collect and process huge volumes of structured and unstructured data coming from 800,000 legacy oil and gas wells in real time. This solution mitigates environmental and financial risk, making it a win for everyone. Visit Analytika

PureFacts extracts key financial insights and calculates fees more accurately with AI -> PureFacts helps wealth management firms reduce client attrition, manage risk, maintain compliance, and run operations better and faster with AI-powered solutions enabling customers to provide more personalized experiences for investors at scale. The “Insights as a Service” platform built on Azure uses machine learning to retain their highest-valued client, extract key financial insights in seconds, and detect fees data anomalies with 90 percent accuracy. Read the PureFacts AI success story

Your success is our success

Visit the Empowering intelligent banking at Microsoft.com for more information and resources about AI for financial organizations. The Microsoft Partner Network website also offers premium resources like playbooks, immersive demos, and webinars to help you succeed.