FSI organizations have started on their AI journeys saw improvements in areas such as better customer engagement, higher competitiveness, accelerated innovation, higher margins, and improved business intelligence, recorded in the range of 17% to 26%.
The study also found that more than half (52%) of the region’s FSI organizations have already started on their AI journeys. This is higher than the Asia-Pacific average of 41%, indicating that the sector is more advanced than others in the region.
“The digital economy has resulted in demands for organizations to reinvent themselves such that they remain relevant to their customers. To do so, FSI organizations need to address three key imperatives — how to leverage data and AI for their operations, how to build and maintain trust among their customers, and how to tap on partnerships to drive innovation to stay ahead of the game,” said Connie Leung, Senior Director, Financial Services Business Lead, Microsoft Asia.
By 2021, organizations expect between 35% to 45% improvements in these areas, with the biggest jump in the rate of higher margins.
An example of a company that has started its AI journey is China Asset Management Company (AMC). AMC serves more than 46,000 institutional clients and 110 million retail investors, with US$153 billion in assets under management.
When it comes to quantitative investment — a method of analyzing data likes price and volume to calculate which stocks to buy or sell and when — the tricky part is collecting the right data from the mountains of information available. Additionally, financial data is “noisy,” meaning there are many potentially misleading signals that need to be filtered out.
To overcome these challenges, the company turned to Microsoft Research Asia (MSRA) to build the “AI+Index Enhancement” machine learning model for fund managers and traders. The model helps them to make better informed buy-and-sell market decisions that bring in higher returns for their investor clients. Designed to sift through and analyze vast amounts of real-time financial data, the model is now undergoing testing, and is well ahead in performance when compared against the market or specific indexes.
“AI is a critical technology in driving financial transformation, and it is of great significance to tap into the convergence of AI and financial services,” said Li Yimei, General Manager, AMC.