Changing nature of banks and impact of machine learning

1. Sounds of the 80s

2. Objectives - Banks, FinTech & ML
Many roles at banks will be impacted by AI/ML
What are the opportunities and threats?
20+ years working in large European Banks (UBS,
Barclays, Credit Suisse, ABN, BNP Paribas, HSBC)
Two FinTech start-ups
Working in banks has changed
Exciting
Complying
AI / ML is interesting (technology / culture)
Me
Thoughts
antony.c.turner@icloud.com

3. Context: Fundamental change in ROE

4. Challenges facing banks today
Regulation
Low Interest
Rates
Legacy
Infrastructure
Culture
Fin Tech
Accenture: Top Ten Challenges in 2017
EY: Top Eight Challenges
McKinsey: An Agenda for Change
Is Fin Tech a challenger
or an enabler?

5. FinTech Everywhere
$17.4 billion in investment
last year alone
According to EY, a third of
consumers worldwide are
using two or more fintech
services
CNBC - October 2017

6. AI/ML Everywhere
(McKinsey: $26 - 39 BN investment in AI in 2016)

7. What impact will AI/ML have on jobs?
Who’s afraid or excited?
230,000 net jobs in Financial Services could
disappear by 2025
AI will eliminate 1.8M jobs but create 2.3M
by 2020
eFinancial New - March 2017
Gartner, October 2017

8. Prediction
5 years
0
5 years
0
Number of Sales
staff
Number of Business
Management staff
How will these
roles evolve?

9. Less Excel and Powerpoint?
Silos of
inconsistent
data…
Too many
applications…
Complicated
applications…
No insight - just
data…
The past The future
Descriptive,
Diagnostic,
Predictive,
Prescriptive
Strategy
Relationship
Management
?

10. Sounds of the future?

11. Summary - Banks, FinTech & ML
Banks’ Return on Equity has declined significantly
Banks are facing several challenges
FinTechs are developing many bank services
Billions are being invested in AI/ML
Roles involving manual analysis of data will disappear
antony.c.turner@icloud.com