The Rise of Data and Technology in the Banking Industry
Data and technology in the banking industry are automating tasks not previously possible. Learn how AI and decreased computing power costs are revolutionizing the banking industry.
Costs and regulatory requirements continue to pressure banks to improve operational efficiency. Where some banks see these pressures as obstacles, others see opportunity. Banks successfully leveraging data and technology will not only be leaders in the financial services industry but will be the leading data and technology companies of the future.
Goldman Sachs is seen as a bank focused on leveraging data and technology for operational efficiency. The recent state of operations at Goldman Sachs demonstrates their continued commitment to data and technology innovation and their belief in the rising importance of both.
As computing power costs continue to decrease and the field of artificial intelligence advances, data and technology are enabling the automation of tasks that were not previously possible. For example, J.P. Morgan recently developed a program called Contract Intelligence that automatically interprets commercial-loan agreements in seconds using Natural Language Processing (NLP). Prior to the program, manually interpreting these agreements took a total of 360,000 hours each year by lawyers and loan officers and was error prone. J.P. Morgan will continue to reap the benefits of its technology spending and has raised its technology budget to $9+ billion.
Underlying any technology is the data it uses and generates. On a daily basis, decisions are being made by systems, employees, and executives from the data provided by technology. Although technology plays a key role in automating processes and improving efficiencies, data management is equally—Sagence would argue perhaps more—important.
As Jace Frey, a Partner with Sagence, pointed out in his blog, “Data Management Strategies for Managing ‘Etweaf,’” companies who do not have business and data management strategies in place to manage “Everything That Ever Was” will not have the required foundation to become the data and technology companies of the future.
How confident are you in your data management strategies? Are they positioned to make your firm an industry leader or are you struggling to simply meet today’s standards? Sagence can help you evaluate, build, and implement practical business and data strategies to advance your firm’s business objectives.
Learn more about Sagence’s Financial Services practice.
Contributed by Phil Liu.