Technology: The One Job in Banking the Robots Can’t Take - PressFrom - US
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TechnologyThe One Job in Banking the Robots Can’t Take

08:35  21 august  2019
08:35  21 august  2019 Source:   bloomberg.com

These tiny robots tackle tasks in groups, just like insects

These tiny robots tackle tasks in groups, just like insects On its own, a single ant can only accomplish so much, but you toss it into the mix with a couple hundred of its peers and suddenly the capabilities of the group are exponentially greater than the sum of its parts. Could the same be true of robots? 

The opening of the Amazon Go store in Seattle brings us one step closer to the end of work as we know it, writes Guardian economics editor Larry Elliott.

Find out how susceptible is your job to computerization. By continuing to browse the site, you agree to our use of cookies. Learn more. Got it! Will Robots Take My Job ?

(Bloomberg) -- When HSBC Holdings Plc thwarted a $500 million central-bank heist, sophisticated computer software didn’t raise the alarm. The funds flowed undetected from Angola’s reserves to a dormant company’s account in London. It was a teller at a suburban bank branch who became suspicious, declined a request to transfer $2 million, and triggered a review that uncovered the scam, according to one account of the episode.

That was two years ago, and the finance industry’s battle to stop the illicit transfer of as much as $2 trillion a year around the globe hasn’t become any easier. At least a half-dozen lenders in Europe have found themselves at the center of fresh allegations of dirty money schemes in the past year. The wave of scandals—at Denmark’s Danske Bank A/S, Deutsche Bank AG, and others—is undermining confidence in the industry well beyond the individual institutions involved.

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The Great Tech Panic: Robots Won’ t Take All Our Jobs . But, as economist James Bessen has shown, the number of bank tellers actually rose between 2000 and 2010. On the one hand, we’re told that robots are coming for our jobs and that their superior productivity will transform industry after

It’s One the Robots Can ’ t Take (Yet). That neatly complements the results of our survey findings that we released in July — that one in three bankers were worried about robots stealing their jobs . 46% of retail banking professionals think a bachelor’s degree in business administration is necessary

Financial-services executives have had little choice but to significantly step up regulatory efforts; more than 1 in 10 now spend in excess of 10% of their annual budgets on compliance, according to financial adviser Duff & Phelps LLC. Banks are eager to find ways to bring that spending down—management, employees, and shareholders never want to spend on what are effectively internal cops. Today there’s a sense that growth may be peaking. About two-thirds of institutions considered systemically important on a global level, a leading indicator for the industry, expect the size of their compliance teams to remain unchanged or shrink, according to a Thomson Reuters Regulatory Intelligence report. The largest companies want to adapt their teams to grow or scale back as necessary, the report said.

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Markets need direction from central banks or earnings, strategist says. Investors need to ' take a breath' amid volatility, says CIO.

Jay's job is the kind that can already be replaced by a robot . But he needn' t worry, because he has what robots will never replace – amazing Jay's skills are what I'd just been told at a book launch, are the skills of the future. Thank goodness the book, "Don' t Worry About the Robots " is not like the usual

That’s led to buzz that banks are deploying artificial intelligence to replace surveillance staff. HSBC last year started using AI to screen transactions, and the two biggest Nordic banks have said they’re replacing compliance staff with algorithms. Online banking startups such as Revolut Ltd., which rely on computerized efficiency to compete with established lenders, are finding compliance a challenge they need to address.

So far, machines are confined to simple know-your-customer (KYC) applications and are far from ready to replace humans, says Tom Kirchmaier, a visiting fellow at the London School

of Economics’ Centre for Economic Performance. He’s not optimistic that a major advance is afoot, either. “There’s a lot of talk but no action,” he says.

Take ING Groep NV, which last year paid €775 million ($869 million) to settle an investigation by a Dutch prosecutor into alleged money laundering and other corrupt practices. Even though the bank  uses machine learning to filter out false alerts on potential bad actors, the lender has had to ramp up the number of individuals handling KYC procedures.

Swiss Lender Adopts Tireless Computer Bots in Cost-Cutting Drive

Swiss Lender Adopts Tireless Computer Bots in Cost-Cutting Drive A 151-year-old Swiss bank is among the first wave of smaller lenders deploying robots for basic tasks to drive down costs and is considering expanding its use of the technology. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.getMedianetNativeAds(true); }); After a successful test run, St. Galler Kantonalbank AG decided to employ three bots for jobs such as compiling information and using it to fill out forms. The company plans to add a fourth soon and has set up a five-member team to look at ways of employing the technology.

Robots cannot take care of small children or babies in the same way a human being can. Infants and toddlers need real human interaction if they are to learn and grow. As with childcare professionals, artists, journalists and chefs – the one human trait a good doctor shares with these people is empathy.

10 Jobs That Robots Can ' t Do, Yet. Or would you instead bank on the inventiveness of a robot with AI? Very few people would choose the latter these days. But the robot cannot (at the moment anyway) come up with a brilliant, innovative ad to capture the imagination and sell a lot of products.

It’s tripled compliance personnel in the Netherlands over eight years; staff dedicated to KYC account for 5% of total employees.

Banks and tech companies need to overcome a number of obstacles for AI to succeed in tackling money laundering. For starters, they need better customer data, which is often neither current nor consistent, especially when a bank spans multiple jurisdictions. Enhancing the quality and frequency of data gathering is a crucial first step.

Banks are also constrained in their ability to detect bad behavior, with or without computers, because competitors and national law enforcement agencies won’t share data. Across Europe, for example, regulation and enforcement are split along national borders. Lenders would benefit from a common European anti-money-laundering regulator, data sharing among banks, and a more open dialogue with bank supervisors, Citigroup Inc. analysts wrote in a note to clients in June.

When banks do share information, it’s often unhelpful. They tend to over-report suspicious activity to the relevant agencies to shed responsibility, but enforcement authorities typically don’t provide their findings to the financial companies. What’s more, banks, wanting to shield bigger clients from unnecessary scrutiny, often under-report activity they should be flagging, according to the LSE’s Kirchmaier. That leads to potentially suspicious transactions being classified as normal. The algorithms learn to replicate those types of decisions.

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Jobs will go in banking , but they will largely be the soulless, repetitive ones and will mostly be replaced by more jobs elsewhere in a company. The robot revolution may come, but not quite yet. Based on reported workforce numbers at listed financial companies employing at least 1 ,000 people in

Jay's job is the kind that can already be replaced by a robot . But he needn' t worry, because he has what robots will never replace – amazing Jay's skills are what I'd just been told at a book launch, are the skills of the future. Thank goodness the book, "Don' t Worry About the Robots " is not like the usual

In short, the historical dataset available to train the machines is misleading, complicating their ability to learn detection.

Criminals, by contrast, are constantly adapting their ways, finding new routes for their cash when existing ones are blocked off. Catching tomorrow’s money launderers requires anticipating where they’ll move next. Will they trade gold or crypto assets? When parameters change even slightly, AI struggles to stay ahead of the criminals.

Trust in financial services after the 2008 crisis is taking a very long time to rebuild. Banks are wary that they risk teaching machines to stereotype customers based on where they come from or where they do business. “Ethical concerns associated with AI are rightfully restraining banks’ full embrace of machine learning,” says Alexon Bell, chief product officer at Quantexa, a London-based data analytics company that counts HSBC among its customers.

Regulators, frustrated with the slow speed of change, have encouraged banks to deploy more technology. In December the U.S. Treasury Department’s Financial Crimes Enforcement Network, jointly with the Federal Reserve and other U.S. agencies, called on banks to try new approaches to meet anti-money-laundering requirements, including AI, and have offered leniency if the tools uncover deficiencies in existing systems.

One thing seems clear: Compliance spending at banks may be shifting away from employing humans to adopting new software. But for now, those living and breathing internal cops are here to stay.

To contact the author of this story: Elisa Martinuzzi in London at [email protected]

To contact the editor responsible for this story: Christine Harper at [email protected]

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

Starship's delivery robots now serve Purdue University.
Starship's delivery robots have reached their largest school campus yet. Purdue students at the university's West Lafayette campus now have the option of ordering robot-delivered food that should arrive in "minutes." As at other schools, deliveries carry a flat $2 fee and work in tandem with your student meal plan. If you're too busy studying to traipse across the university grounds and don't want to spend much more than you're already paying for food, your solution might be at hand. The bot maker is in the early stages of an expansion that will have thousands of machines serving campuses within the next two years.

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