Prospects and bottlenecks of the banking sector’s use of artificial intelligence were discussed in a meeting of tech and banking experts. Participants stressed the need and significance of providing innovators access to big data and a meaningful rethink in the banking industry’s approach to high-tech.
The meeting was hosted by Bankdari Ayandeh magazine in Tehran. Shohreh Tabatabaei, the head of the Artificial Intelligence Department at the Information Services Corporation (ISC), discussed the role of AI in banking and the ISC’s approach to it.
“AI can be applied in a variety of ways in the banking industry, such as credit assessment, customer acquisition, loyalty programs, financial assistance, chat bots, analysis of payment card transactions, market analysis and opening accounts.”
She noted that 45% of banks worldwide moved towards the use of AI by the end of 2022 and thousands of AI-based tools are being added daily “which could threaten traditional jobs.”
Mohammad Reza Maboudian, the head of the AI Commission at ICT Guild Organization, emphasized the need to focus on industrial AI when discussing its implementation in the banking sector.
“There are some 600 AI companies operating in Iran indicating the country's potential in AI.”
Need for a Roadmap
He called for a clear business plan and transparency in this key area. “Given the maturity of Iran's banking industry, the adoption of AI can yield significant achievements”.
Maboudian noted that there are several powerful chatbot companies in Iran in need of big data. “Negotiations are underway with the government to support these companies in data access.”
Regarding interaction between banks and the private sector, he noted that banks are generally reluctant to provide customer data to private companies. “Therefore, it is necessary to seek solutions from other countries that have faced similar challenges.”
He suggested bankers focus on developing infrastructure and make use of startup potential instead of investing huge sums into developing tech tools.
Mehdi Namazi, the director of Research and Innovation at the ISC, said that the use of AI can be examined from two perspectives: banks and IT companies. “Banks should focus on digital transformation plans and use technologies such as blockchain, metaverse, quantum computing, and AI to explore their applications in their business.”
Acting as Enablers
“On the other hand, large IT companies should seek opportunities, invest in innovative technologies, and act as enablers for startups based on emerging technologies.”
He emphasized the need for investment, planning, and patience to create value from new technologies.
Amir Behdad Salami, the head of the Consulting Department at ISC, stressed the need for a clear strategy for the development of AI, as technological changes do not happen overnight.
He highlighted the risks and challenges associated with the use of AI tools and the need for categorization in the banking sector to appreciate the cost cutting by delegating certain tasks to AI.
“Creating strategic infrastructure for companies in the current market is a major challenge and clean data is essential for the use of AI as stated in the long-term plans of companies.”
Nima Shamsapour, the CEO of UID, an identity verification company, said that the use of AI has both technical and business-related challenges. “Investment in our country is not very cost-effective due to current [difficult economic] conditions, and the benefits of investing in AI for banks in Iran are not yet clear.
He also recalled that access to big data is crucial for development of any AI service, “without it, the AI industry cannot move forward.”
“This is an opportunity that should not be missed,” he said, and called for the government to support companies that are working in the AI sectors.
