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Big Data meets artificial intelligence

Big Data meets artificial intelligence

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Challenges and implications for the supervision and regulation of financial services

SUMMARY

This brief speculates big data (BD) and artificial intelligence (AI) will create pathways for completely new applications, products, services and business models across the financial sector.

The following brief focuses on the technological advancements of big data and artificial intelligence (BDAI), analyzes the potential impact of these technologies on the financial market and economic players, and features the possible effects for financial regulatory institutes. The report highlights how BDAI complement each other within the commercial system, solving complex objectives. By combining advanced analytics and large amounts of data, new insights can be used to promote product and process innovations. 

BDAI can foster a “winner-takes-all” market structure. In comparison to current BDAI use and application, capital markets are leading innovators, while banks and insurance companies are slow adopters of this technology.

BDAI provides potential changes for banks, insurance companies, and capital markets. BDAI can help banks meet changing customer expectations, such as improving the speed of processes, engaging communication between provider and customer, and personalizing services. In the insurance industry, BDAI can change fundamental procedures, such as claim settlements. For instance, data from smart wearables can help differentiate pricing and risk assessment. As for capital markets, greater BDAI usage facilitates faster processes in trading, sales and product development; moreover, BDAI facilitates fragmentation and rise of new financial players, contributing to further decentralization of the value chain.

BDAI offers massive market change across all financial service players. But how does this technology impact the role of supervisory and regulatory bodies? Financial supervisory institutions face challenges during this period of rapid technological change. Regulatory bodies must ensure their supervisory policies and practices match the pace of technological progress. Supervisory institutes must remain technology-neutral while upholding the safety, privacy, and concerns of their stakeholders.

OUTLINE

Summary


Introduction


Technological essentials


Strategic requirements


Market analyses


Supervisory and regulatory implications


Appendix

 

DETAILS

Overview

Researchfinder Rating
5 out of 5 stars
Title
Big Data meets artificial intelligence
Sub-Title
Challenges and implications for the supervision and regulation of financial services
Region
Global
Published
July 16, 2018
Publisher
BaFin
Price
FREE
Language
ENGLISH

Content

Number of Pages
196
Number of Tables
1
Number of Exhibits
37
Topics
ai, cloud
Tags
AI, AI development, BaFin, big data, cloud applications, data analytics, data management, financial services, insurance, supply chain, trading software
Methodology
This report employs market analyses and use cases to highlight potential impacts from financial sector players, including banks, insurance enterprises, and capital markets. This speculative study was conducted by science and research experts.
EVALUATION

This report is written in plain language to simplify the complexity of artificial intelligence (AI) and big data (BD).

This report includes in-depth descriptions of emerging technology. Specialized jargon is defined for inexperienced readers. And for readers that do not want to read, the figures simplify complex relationships between technology, society, and marketplace.

Pros

  • Informative visual data
  • Key insights from industry experts
  • The report is presented in plain language

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