Banking sector under seige from technology

THE banking sector is undergoing its most disruptive period in history, Bankers’ Association (BATT) director Nigel Romano, said, under siege from advances in technology including blockchain, financial technology (fintech) firms, and artificial intelligence.

Added to that, the global macroeconomic environment in which the industry operates is marked by high levels of uncertainty in the technological, political, economic and legal regulatory scene. Romano was delivering remarks on behalf of BATT to the new graduates of the Institute of Banking and Finance, who had officially earned either their Diploma in Banking, or their Certificate for Financial Advisors.

Despite his dreary outlook for their chosen profession, Romano offered a ray of sunshine: despite the upheaval in the industry by technology, nothing would be able to replace a person’s judgement— a combination of intuition and experience.

Artificial intelligence (AI) is helping people to manage money, especially for people who don’t have access to financial planners. Financial planners, should, however, use AI to help them engage better with clients and increase their productivity. “You don’t want to be reliant on AI to the point where you are dependent,” he said. Instead, let AI work for you. “Instead of spending time on boring stuff, let it help you focus on your client, relate with empathy and give them relevant and useful advice,” he said.