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<p>Acknowledgements xv</p> <p>About the Author xvi</p> <p>Introduction xvii</p> <p><b>Chapter 1 Prologue: Why Banking? 1</b></p> <p>Summary 1</p> <p>Introduction 2</p> <p>What is Banking? 4</p> <p>What Do We Mean by ‘Money’ Today? 7</p> <p>A Cashless Society Increasingly Emerges 8</p> <p>Key Banking Functions 10</p> <p>Future Jobs in Banking 14</p> <p>Conclusion 17</p> <p>References 18</p> <p><b>Chapter 2 Imperatives in Banking 21</b></p> <p>Summary 21</p> <p>Introduction 21</p> <p>Strategy and Imperatives 23</p> <p>Strategy 23</p> <p>Business Imperatives 24</p> <p>Current Imperatives in Banking 24</p> <p>Comparable Imperatives in the Retail Industry 26</p> <p>Comparable Imperatives in the Telecom Industry 27</p> <p>Comparable Imperatives in the Healthcare Industry 29</p> <p>Future Imperatives in Banking 30</p> <p>Greater Customer Centricity 30</p> <p>Becoming Truly Digital 31</p> <p>Completely Accepting Technological Change 33</p> <p>Reimagining Banking 33</p> <p>Reinventing Risk Management 35</p> <p>Conclusion 36</p> <p>References 37</p> <p><b>Chapter 3 Data and Analytics Primer 39</b></p> <p>Summary 39</p> <p>Introduction 39</p> <p>Data Management and Analytics 42</p> <p>Data Management 42</p> <p>The Hierarchy of Analytics 43</p> <p>‘Next-Generation’ Cognitive Analytics 45</p> <p>Extracting Value from Data 46</p> <p>The Importance of Location Analytics 50</p> <p>Conclusion 51</p> <p>References 52</p> <p><b>Chapter 4 Key Elements of Banking Analytics 55</b></p> <p>Summary 55</p> <p>Introduction 56</p> <p>Office of Finance Management 56</p> <p>Performance Management and Integrated Decision Making 58</p> <p>The Key Elements of Banking Performance Management 59</p> <p>Customer Analytics 61</p> <p>Customer Insight 61</p> <p>Credit Ratings 65</p> <p>Branch-Specific Campaigns 66</p> <p>Impact of Social Media Campaigns 67</p> <p>Relationship Pricing 69</p> <p>Client Servicing 71</p> <p>Risk Management 73</p> <p>Risk Scenario Analytics 74</p> <p>Fraud Detection 75</p> <p>Regulatory Compliance 76</p> <p>Risk Management and AI 76</p> <p>Operational Efficiency 77</p> <p>IT Cost Transparency 78</p> <p>Branch Performance Management 78</p> <p>Contact Centre Service 80</p> <p>Payments Monitoring 82</p> <p>Mortgage Tracking 83</p> <p>Sales, Compensation and Commission Management 83</p> <p>Financial Markets Risk and Trade Monitoring 84</p> <p>Analytics in Portfolio Management 85</p> <p>Derivative Markets 86</p> <p>Conclusion 87</p> <p>References 89</p> <p><b>Chapter 5 Machine Learning, AI and ‘Apps’ 93</b></p> <p>Summary 93</p> <p>Introduction 93</p> <p>Theory and Practice of Machine Learning 95</p> <p>Apps and Their Usage 96</p> <p>Data Visualisation 101</p> <p>Voice Recognition and Voice Assistants 102</p> <p>Visual and Facial Recognition 104</p> <p>Thumbprint Recognition 106</p> <p>Palm Vein Recognition 107</p> <p>Wealth Management Systems and Apps 107</p> <p>The Biometric Moral Argument 109</p> <p>Conclusion 111</p> <p>References 112</p> <p><b>Chapter 6 AI and the Importance of Brand in Banking 115</b></p> <p>Summary 115</p> <p>Introduction 116</p> <p>Brand Value and Equity in Banking 117</p> <p>Millennial and Gen Y Brand Expectations from Bank Brands 119</p> <p>Branding Expectations of Generation Z 120</p> <p>Branding Expectations of Generation X 121</p> <p>Branding and Customer Experience Interlocked 123</p> <p>Branding and Human-Centred Design 124</p> <p>To Brand or to Debrand? 125</p> <p>Banks Will Use AI to Become Lifestyle Managers 128</p> <p>Consumption and Credit Smoothing 128</p> <p>Conclusion 130</p> <p>References 130</p> <p><b>Chapter 7 AI Leadership and Employee Transformation 133</b></p> <p>Summary 133</p> <p>Introduction 133</p> <p>Leadership in an AI-Infused Age 136</p> <p>Augmented Leadership 137</p> <p>Analytically Infused Leadership 138</p> <p>A New Approach to Leadership: ‘Trust but Verify’ 140</p> <p>Attributes of AI-Infused Leaders 141</p> <p>Leadership Training for the Future 143</p> <p>‘Digital Future of Banking Requires a New Leadership Model’ 145</p> <p>Zen and Leadership in Banking 146</p> <p>Functional Change and Role Transformation 147</p> <p>The Evolution of the Banking Employee 149</p> <p>A Banking Employee Persona in 2050 149</p> <p>Conclusion 151</p> <p>References 152</p> <p><b>Chapter 8 The Bank of the Future 155</b></p> <p>Summary 155</p> <p>Introduction 156</p> <p>Branch Makeover 156</p> <p>The Emergence of the Café Bank 159</p> <p>Millennials Not Happy with Dealing Only with Robots 160</p> <p>Virtual Reality: Banking and Gaming Converge 161</p> <p>Universal Banking and Beyond 163</p> <p>Universal Banking in the United States 164</p> <p>Banks as the Catalyst for Change: ‘Peer to Peer’ 164</p> <p>Payment Processes Become More Customer Centric 166</p> <p>Five Scenarios for the ‘Bank of the Future’ 167</p> <p>The Full-Service Bank 168</p> <p>The Digital Bank 169</p> <p>The Disaggregated Bank 170</p> <p>The Conversational Bank 173</p> <p>The Collaborative Bank 174</p> <p>Transformation of the Investment Bank 175</p> <p>Conclusion 178</p> <p>References 179</p> <p><b>Chapter 9 Open Banking and Blockchain 183</b></p> <p>Summary 183</p> <p>Introduction 184</p> <p>Setting the Stage: Open Banking 184</p> <p>Interlock between AI and Open Banking 186</p> <p>Blockchain: Setting the Stage 186</p> <p>Interlock between Blockchain and AI 188</p> <p>Blockchain in Banking 188</p> <p>Interbank Market 189</p> <p>Forex Market 190</p> <p>Investment Banks and Blockchain 191</p> <p>Blockchain in Indian Banking 193</p> <p>Blockchain and Open Banking in Africa 196</p> <p>Conclusion 199</p> <p>References 201</p> <p><b>Chapter 10 Innovation and Implementation 203</b></p> <p>Summary 203</p> <p>Introduction 203</p> <p>New Roles and Responsibilities 204</p> <p>Bootcamps, Hackathons, Innovation Labs, and Other Devices 205</p> <p>Implementation 207</p> <p>Innovation or Adaptation? 208</p> <p>The Use of ‘Design Thinking’ 210</p> <p>Finding Capital to Innovate: One Example 211</p> <p>Fintech for Banking 212</p> <p>Blockages to Innovation 216</p> <p>Conclusion 218</p> <p>References 218</p> <p><b>Chapter 11 Cybercrime and IT Resilience 221</b></p> <p>Summary 221</p> <p>Introduction 222</p> <p>Cybercrime in the Context of Operational Risk 224</p> <p>The Internationalisation of Cybercrime 225</p> <p>Cyber Security Toolkits 226</p> <p>Cyber Risk Management Apps 227</p> <p>Broader Cyber Issues for Banking 227</p> <p>Safeguarding the Bank of the Future: New Cyber Security Threats 228</p> <p>Responding to Cyber Attack 230</p> <p>Cyber Readiness 231</p> <p>New Cyber Roles, New Cyber Responsibilities 233</p> <p>AI Fraud Detection in Banking 234</p> <p>Advanced Analytics in Fraud Detection 235</p> <p>AI and Anomaly Detection 236</p> <p>Fraudulent Use of Data 236</p> <p>Cyber and the Law 238</p> <p>Conclusion 239</p> <p>References 239</p> <p><b>Chapter 12 Epilogue 243</b></p> <p>Appendix: Fintech in Banking 247</p> <p>Index 271</p>

<p><b>TONY BOOBIER</b> is a former IBM worldwide executive focusing on financial services. He has over 30 years of experience and is a frequent writer and international public speaker. Tony possesses a deep understanding of how to apply business intelligence and analytics to enhance the management and delivery of products and services in numerous industries. A recognised expert in customer analytics, risk and operational effectiveness, he is a strong advocate for enterprise-wide analytics to improve service and reduce cost. He holds professional qualifications in engineering, marketing, supply chain management and insurance.

<p><b>Praise for AI and the Future of Banking</b> <p>"Tony is not only a renowned expert of the financial industry of his home ecosystem, but also has exclusive behind-the-scenes insights into banks and insurers around the world. Therefore, I am pretty sure that this book will become a widespread bestseller pretty quickly."<br> <b>—Dr. Robin Kiera,</b> internationally acknowledged digital thought leader <p>"This book is a superb resource for those keen to keep pace with the continuously evolving financial services sector. It discusses how AI and analytics impact banking, including Open Banking and Blockchain, and such insight will resonate with all who read it – from sector newcomers to seasoned professionals."<br> <b>—Francesca Breeze,</b> UK Communications Consultant, Financial Services <p>"A modern guide on how technology is transforming the role of banking in our society and the relationship with the institutions, a must-read to understand the next steps of this revolution."<br> <b>—Marcilio Oliveira,</b> Founder, Sensedia <p>"Tony Boobier provides extensive guidance and background on the digital revolution in Financial Services. A comprehensive sprinkling of the fin-tech disruption makes it a must-have for anyone involved in the future of banking."<br> <b>—Richard Sequeira,</b> Director – Financial Services, TELUS Canada <p>"Tony has done a great job putting AI and banking together. IT has been the machinery powering banking for a long time, and AI is the new brain. With his profound knowledge, understanding and vision, he delivers for the reader a clear, structured and thorough path from today to the future of banking."<br> <b>—Rafael Funes,</b> Executive Chairman, LOVIS <p>"At a time when business as usual is no longer a viable option for banks, due to the industry being totally reinvented by the advent of digitisation and AI, this book offers some highly valuable tips for organisational leaders on how to best navigate through these highly volatile and changing market conditions and develop a set of future proof strategic business imperatives."<br> <b>—Dr. Randeep Gug,</b> Managing Director, Fitch Learning

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