This is the final in a 5 part series (published weekly) written by guest author Amber Sutherland a banker who understands technology who currently works for Silent Eight an AI-based name, entity and transaction adjudication solution provider to financial institutions. Click here for Index and Part 1.
Operational resiliency and third party due diligence have become a significant focus in the industry and can be a barrier to doing business. Many regulators, including the EBA and the FCA, have issued guidelines on the topic, and continue to revisit it
It’s vital to understand if a vendor is reliant on any other vendors in their tech stack, if they’re using open source code, what their deployment is (on-premise, in the cloud, in a private cloud), and what security standards they adhere to.
Take back the things you can control
Right now, the financial services industry is beset by many challenges that are outside of its control, including the low-interest environment, working remotely, bad debt provisions, and the increased new accounts and suspicious activity resulting from COVID.
Your compliance costs and processes are a piece of the puzzle you can control. Good artificial intelligence technology will enable you to offload some of your mundane, repetitive tasks, freeing up you and your team to focus on more complex risks and higher-value projects.
I recognize that artificial intelligence can be a bit daunting and that it has a mixed reputation in the industry. However, if you’re armed with a dose of skepticism, the right questions to ask, and you approach it with an open mind, you’ll be amazed by what it can do.
See previous post in this series.
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