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Artificial intelligence (AI) provides “endless use cases”, according to panellists at this year’s Euroclear Collateral conference.
One panellist said that AI produces immediate gains, potential in the value of its services, potential revenue and doesn’t require any industry-wide collaboration.
The panel looked at some of the developments that showcase the future uses of technology in the industry, with one speaker noting that over the past few years technology has been affecting lives like never before.
A panellist questioned the reasonable timeframe for execution of technology.
In response, one panellist said: “Nobody has a crystal ball. It is really hard to generalise, so you cannot say that all institutions have the same technology programme, there is a diversity out there and the crystal ball doesn’t give one answer for the whole group.”
Another speaker explained that technology has been subject to a lot of hype over recent years.
The speaker added: “The technology at the moment is not fully stabilised quite yet. Adoption will take time, it requires collaboration across the industry and this will take time. There will be a lot of initiatives, there will also be a lot of scrutinies.”
Another speaker explained: “You need data for AI because without it and without the transparency of logic you will get flaws and biases as a result. On top of that, you need a robust set of application interfaces, in order to survive in the market, you need to move from a pipeline to something more platform like.”
In terms of challenges, one speaker observed: “There is a lot of resistance and questions which need to be addressed. The cost of migration is huge. Cost-effectiveness and user friendlies are good but the most important is security.”
“A lot of regulators have access to a bulk of data, for example, the passport member of everyone trading UK security, which leaves a cyber risk of that data there.”
“The problem with cloud and regulators is the cloud providers. The regulators want audit rights and the cloud providers won’t give them that yet. I don’t think new regulations should be made for fintech. Regulators need to cooperate a lot more globally to get a reduction in risk. I think they have started quite well.”
