Cards in 2019 will transform. The payment method is set to see AI take it by storm to revolutionise the solution. Patrick Brusnahan speaks to experts on how the technology is set to make a difference
David Jones, VP – Product Marketing, Nuxeo
Many large financial service institutions have struggled with the task of managing increasing volumes of information plus locating important information that lives in multiple customer systems and transaction repositories, and many will continue to find this challenging in 2019.
But AI-empowered classification of content with a Content Services Platform (CSP) approach – as introduced by Gartner – offers financial services CIOs a promising new way of searching for useful information, allowing banks to at last identify what is useful and get rid of content that is past its sell-by date.
The difference is that old-school enterprise content management systems adopted a fixed set of metatags for each document, and changing these classifications requires a lot of development work along with mass updates to all content related to that metadata.
In a CSP, if you want to add a new metadata field, you can. Plus, much richer metadata can be stored and used than ever before – think image resolutions, language of a document, geophysical data and more, giving context, intelligence and insight into your information management ecosystem and allowing you to make those disconnected systems truly useful once again.
Emma Huntington, Strategic Development, Innovation and Venturing lead, Nationwide
It has been an interesting year as we launched our Venturing Fund and made our first three investments while continuing to explore the challenges and opportunities of a rapidly changing world. From the changing housing market, the opportunities of working with startups and how we can unlock the power of new technologies to help tackle societal issues, we are looking at the long-term and evolving needs of our members.
While Nationwide has helped over 300,000 first-time buyers into homes of their own in the last five years, the reality for many is that they will be renting for longer periods than previous generations. Technology has transformed the way we manage our lives, from grocery shopping to booking a taxi, and the home-rental industry is now ripe for a similar transformation, where technology enables renting a property and getting help with any issues to become easier for renters, while managing a property becomes easier for landlords – and communication between both sides is also improved.
The first investment from our Venturing Fund was with acasa, which is exploring how to transform the rental experience, and we are exploring how we can support our members in this growing area.
Turning to the fintech industry, it looks as if the increase in the number of big businesses working with startups will continue, while regional disparities in the support available for startups will still be an issue. Having launched our venturing arm, NBS Ventures, in the summer of 2018, we are investing for the long term in supporting great startups to scale. With investments in three companies so far – acasa, Hazy and Moneyhub – we will continue to work with great start-ups to do things together that neither of us could do alone.
It is not just in London that we’re seeing innovative companies starting up – but support for early-stage businesses outside large metropolitan hubs can be hard to come by. That is why we’ve started a regional mentoring pilot, going out to some of the hardest regions in which to start a business and providing space, advice, mentoring and a community to support each other. The scheme is being piloted in Swindon, and we are now looking to expand the pilot to the areas that need it most in 2019.
A year ago, we were anticipating the imminent arrival of Open Banking legislation in the UK. Now that is established, finance-focused businesses including fintech start-ups, established banks and comparison sites are looking to use Open Banking in new ways. The full potential of Open Banking is still yet to be unlocked, but we predict big strides will be made in 2019 in this area. We recently announced the launch of Open Banking for Good, which will see us bringing organisations and people together in 2019 to create and scale solutions around Open Banking that will improve financial capability in the UK. At the heart of Open Banking for Good is a big goal: to use Open Banking to solve some of society’s biggest challenges, creating solutions that bring practical help to the ‘financially squeezed’ – the one in four households (12.7 million people) who are struggling financially in the UK.
It has been an exciting 12 months, and I am looking forward to 2019 as we continue to push the boundaries to ensure we deliver for our 15 million members.
Ed Maslaveckas, co-founder, Bud
Research that we have conducted has uncovered that many bank customers feel a real sense of anxiety linked to ‘the desire to do more’ versus the realities of their finances. This is propagated by constant peer comparison and assessment: the endless cycle of triumphs and achievements viewed through the unforgiving lens of social media.
Banks can cement their relevance in this context by looking to create new value in transactional data – building new experiences by cleverly linking data from the products and services that make up their customers’ financial worlds. We expect to see this trend really take off in 2019, as banks take advantage of Open Banking to power products that will help them stand out from the crowd in their customers’ eyes – this year, personal finance will have to get really personal.
Mark Gazit, CEO, ThetaRay
The complexity of attacks will continue to grow as criminals increasingly use AI to conduct their schemes. Cards in 2019 are no different.
Banks will receive more fines for money laundering, because they will have a decreased ability to protect themselves. Rogue regimes will also use AI to achieve their cybercrime goals, including election fraud, social media manipulation, money laundering and more.
Perhaps worst of all, AI-enabled money laundering will create a greater flow of money to criminal organisations to finance narcotrafficking, human trafficking and terror attacks.
On the bright side, new advances and AI technology will help financial organisations, critical infrastructure and enterprises to better protect themselves if they choose to deploy such systems.
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