Technology Record - Issue 32: Spring 2024

90 VIEWPOINT The financial services industry can use AI and cloud technology to track and store data, meet regulatory requirements and personalise customer services RYAN BLAKELY: MICROSOFT AI for core systems and payments The next few years should prove to be transformative for the financial services sector. Many organisations are undergoing digital transformation to modernise their core services and payments. The introduction of generative artificial intelligence is set to revolutionise financial tools, back-office operations and overall customer experience in ways never seen before. Organisations are moving away from older technology and towards more modern, cloudnative core banking systems. These systems offer the agility and flexibility to provide enhanced and new services that meet or exceed their customers’ growing expectations. With Microsoft Azure, organisations can tap into new technologies and accelerate their transformation journey by modernising their processes for data storage, management, analytics, risk management, fraud detection and regulatory compliance. Improving core services Tracking and storing data enables financial services organisations to uncover AI-driven insights. These insights can modernise core systems, streamline financial operations and improve overall customer experience. Consolidating data and identity management into the cloud improves data quality and overall security posture by enabling the ability to predict risk and detect fraudulent behaviours earlier. The quality of an organisation’s data also affects its ability to report compliance accurately. Incorrect reporting can result in severe penalties. Moving data into a consolidated cloud environment allow firms to access their data in real time to complete audits, predict and mitigate future risks and assess their organisational compliance. Modernisation use cases are trending throughout the financial services sector and many of them involve eliminating lengthy tedious processes that previously relied on extensive manual input. Not only does generative AI allow for the automation of these processes, but it also allows institutions to glean insights from their data. Cloud-based solutions like Microsoft Compliance Manager simplifies monitoring regulatory compliance and helps to reduce risk. It provides users with a score for their current data protection status, based on standards from the International Organization for Standardization, the National Institute of Standards and Technology, and regulatory requirements. It then identifies key areas for improvement and prioritises recommended actions based on their impact on risk. An organisation’s approach to governance, risk and compliance (GRC) is tantamount to success in the heavily regulated financial services sector. Best GRC practices require “ Generative AI is set to revolutionise financial tools”

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