Artificial Intellingence (AI) In Banking

Artificial Intelligence (AI) In Banking

I had a conversation recently with an industry leader regarding Artificial Intelligence (AI) in banking. Among other things, we discussed how smaller banks should really be thinking about how to utilize and implement AI in their models. More prominent institutions are already using this technology. In fact, nearly 30% of all financial models have already adopted AI. However, there is still a vast opportunity for local banks to benefit from this advancement.

Putting AI In Banking On The Map

About ten years ago, there was a huge hiring push for Ph.D.’s in math and statistics to build models within the banks and implement purchased models into the existing systems. Banks needed those incredibly intelligent people to help them understand how they can “predict” future outcomes to assist in planning and fulfilling their regulatory obligation. Now we are at a point where those areas play a much smaller role in the bank, and they no longer need the massive influx of Doctorates, as many of those models are now AI models. This has caused a hiring gap as banks have room to be selective in their hiring pool. As such, the large collection of local candidates is taking priority over those requiring sponsorship.

How Banks Can Find A Balance With AI

Financial institutions will always need those crazy smart financial model developers and validators, but their focus has changed. Banks are now looking for candidates with the base knowledge of financial models, who can also work with business line leaders to determine primary wants and needs. They are focused more on profitability and how the bank can reduce expenses and increase profit. They are now looking for more people who can speak both the statistical “language” and the line “language” and can be the in-between person to help them determine what they want and how to implement that technology. And often, that means researching and finding the best AI models that can do what they need at that moment.

Due to the fact that AI will reduce staff in certain areas, profitability will definitely be improved. However, banks will need additional headcount in other areas that can focus on customer service and customer experience. Obviously, AI is a great technological advancement. However, companies will need to strategize how to implement it to best suit their customers as competition heats up. Competitors are willing to invest in improving the banking experience, and the customers will follow.

If you’re looking to boost your team’s presence in the AI space, let’s have a conversation. I can help you build a custom hiring plan tailored to your needs. From temporary contract to permanent placement, we’ll assist you in establishing your presence in the market.