When 5 technologies converge
Cognitive Automation is the convergence of RPA, AI/ML, API, Blockchain and Analytics. It is the most sought after disruption on the digital transformation of the financial industry and is setting the grand stage for incredible transaction throughput scalability.
A true upheaval has taken place in the innovation and commercial availability of five key technologies that support Cognitive Automation: (1) Robotic process Automation – RPA (2) AI/ML (3) API (4) Data Analytics and (5) Blockchain.
The major challenge for most banks and financial institutions is the paradox of having too much data and too little insight from using traditional analytical systems. Cognitive analytics, in contrast, helps crunch a company’s big data as well as external information sources to forecast future events, behaviors and recommendations on the most rational behavior with respect to the context. Thus, cognitive systems allow conducting what-if analyses to predict the effects of potential changes in business strategies.
Using cognitive computing, the financial industry can now address fraud and risk management more efficiently and effectively than was possible earlier. No doubt fraud and risk are the biggest challenges to the survival of any BFSI organization.
Two other areas where BFSI firms struggle are operations cost and IT, in terms of both productivity and predictability. Productivity gains are in demand and always given, and cognitive computing is a new way of containing costs with exceptional optimization options.
Beyond cost cutting, cognitive systems give financial institutions the ability to deliver unprecedented personalization for their customers in their financial products.
Cognitive computing is geared to handle both structured and unstructured data using AI/ML algorithms. They stimulate and scale human expertise by understanding natural language, analyzing both content and context, and offer progressive support that improves operational efficiency in the financial services industry.