From: The Financial Brand
Digital technologies and advanced analytics have the potential to create the Invisible Bank of the future. Powered by artificial intelligence (AI) and activated by voice, virtual banking assistants can become an integral part of our daily lives.
By Jim Marous
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Regulatory Impact
The report emphasizes that there are regulatory challenges, since this model of banking does not fit or comply with much of the current regulatory requirements. This could be one of several roadblocks to advancement of the Invisible Bank concept.
For instance, in the platform layer component, there is the potential for systemic risk if the algorithms driving the decision-making process are wrong, resulting in wrong recommendations. To date, regulators have been reluctant to have a comfort level with the use of artificial intelligence.
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