Opportunities unlocked by open banking combined with the insights and decision-making capabilities enabled by artificial intelligence (AI)-supported data analytics, are a powerful combination that could revolutionise the financial sector, according to Vincent Brennan, chair of the European Bank Association (EBA) Open Banking Working Group.
Brennan’s comments were included in a Euro Banking Association’s Open Banking Working Group report on the potential of AI for collective use cases in data analytics.
The report found that while much industry focus is currently put on the use of AI at the level of individual institutions, collective benefits could be generated by jointly developed AI systems in the era of open banking.
According to the report, such collaboratively created systems could unlock solutions for common security issues such as fraud prevention and cybersecurity.
The report also explored how the financial industry is currently using AI and gave a number of examples of collaborative AI use cases.
It also explored the benefits of a collaborative approach for both financial institutions and for the financial ecosystem overall.
Brennan stated: “If you bring together the data sharing opportunities unlocked by open banking with the insights and decision-making capabilities enabled by AI-supported data analytics, you end up with a powerful combination that could revolutionise the financial sector.”
He added: “This could be a real game-changer for many of the collective challenges we are facing as an industry, from security issues to regulatory reporting. There are quite a few hurdles to overcome and joint standards to be agreed on, but since there is a lot to be gained, market players should seriously consider looking into these opportunities.”
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