The banking industry produce huge volumes of data every day and yet it was recently revealed, that many banks are not doing enough to verify the validity and accuracy of the data produced, leaving them vulnerable to false insights that could lead to bad decisions according to Accenture.
Accenture report found that half of the bankers (16%) that were surveyed were very least ensured of the validity and reliability of the data quality. More than nine in 10 of the bankers surveyed say they are confident in the integrity of the sources of their data. 24% validate the data, but recognize they should do a lot more to ensure the quality but recognized that they should do a lot more. More than half of the bankers agreed to have used the data to drive critical and automated decision-making, while more than three-quarters (78 percent) of those surveyed believe that these automated systems create new risks, such as fake data, external data manipulation and inherent bias.
“Inaccurate, unverified data will make banks vulnerable to false business insights that drive bad decisions,” said Alan McIntyre, senior managing director and head of Accenture’s banking practice. “Banks can address this vulnerability by verifying the history of data from its origin onward — understanding the context of the data and how it is being used — and by securing and maintaining the data. Given that four in five bankers that we surveyed said they are basing their most critical systems and strategies on data, it’s critical that the data can be verified and validated.”
The survey also shows that AI and the blockchain continue to be top topics of interest for the industry. The research unveiled that nearly four in five bankers believe that AI will work alongside humans as collaborators and trusted advisors within the next two years, although many are worried about regulatory and ethical standards. As for the blockchain, on average, respondents expect that operational blockchain systems will be live in their banks in 2.6 years and that the technology might one day provide cost-effective replacements for legacy core banking systems.
“As AI becomes more visible within banks — as both a co-worker to employees and a customer-facing representative — there will be more scrutiny placed on how AI decisions are made,” said Peter Sidebottom, a managing director of strategy in Accenture’s Financial Services practice. “AI decisioning processes can’t be a black box; banks need to adhere to and provide the same transparency as they do with any other employee to ensure regulatory compliance, and to earn customer trust.”
The Accenture Banking Technology Vision 2018 report draws on the analysis of an advisory board of more than two dozen individuals, interviews with technology luminaries and industry experts, and results of a survey of nearly 800 bankers. This year’s report, with the theme “Building the Future-Ready Bank,” showcases five IT trends — including data veracity — that could generate the next wave of industry disruption for banks and how technological change will rewrite the rules of banking over the next decade.
A full copy of Accenture’s Banking Technology Vision 2018 can be accessed here