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Will 2018 be another fintech year?

14 Feb 2018

Will 2018 be another fintech year?Part 1: artificial intelligence – getting even smarter

Which innovations can be expected this year? Which concepts will become reality and which developments should we keep an eye on in 2018? Generally, it is safe to say that this year will again be all about artificial intelligence (AI), the internet of things, blockchain, cloud computing und IT security. In our new series, we examine the fintech trends for 2018.  In this first article, we explain why AI is growing even more intelligent – and most of all, more applied – in many areas.

Applications such as Alexa or Siri have introduced AI into our daily lives and experts predict that the technology will establish itself even more firmly in 2018. So-called deep learning methods will play an integral part in AI development. By detecting and analysing structures and patterns within business processes, AI systems will be faster to learn, suggest solutions and automate processes.

Customised client applications

Among other things, banks will be able to offer their clients financial services that are tailored to their individual investment portfolios and risk profile. This is aimed at stemming the flood of data in financial firms in the long term. People will learn to interpret big data in new ways, leverage machine learning technologies – and thus make better decisions using less data. The main objective of AI will be to support humans in making highly complex decisions and, ultimately, to improve client experience.

Fintech is the term assigned by the financial industry to all technologies affecting or driving the financial services market. Two sub-segments have emerged from this rather broad spectrum: regtech and, more recently, wealthtech.

Autonomous networks using AI technologies

Imagine a data network that automatically detects and diagnoses errors, redirects data streams to avoid system failures and creates reports for its human “colleagues”. Or think of autonomous databases which free up IT resources independently to be able to take on higher-level tasks, while at the same time improving the availability and security of a company’s networks. This is supported by functions such as automated patching, which identifies and corrects errors, giving updates in real time.

Regtech comprises technologies supporting companies in complying with regulatory requirements – from internal compliance to EU regulation. Wealthtech describes technologies used in connection with wealth management, e.g. robo advisors, autonomous planning tools and back-office technologies.

AI and machine learning for more security

The year 2018 is expected to see an increased use of AI to fend off cyberattacks, supported by autonomous response technology. These systems are able to react to incidents, carrying out precise and targeted actions to neutralise cyber threats. The new development pits one machine against another, with the strongest algorithm prevailing. AI and machine learning have already significantly improved the performance of security analyses. In the future, we can expect even better security products and services that are based on machine learning.  

However, there are also cautionary voices, warning that cyber criminals will also make use of these new possibilities to stage even more effective attacks.

Sources: eGov innovation, IDC International Data Corporation, Hitachi Vantara, Oracle NetSuite, Genesys, Ciena, Dell,  Alibaba Technology Development, Darktrace, Hillstone Networks, Symantec

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