Top 8 Quotes on Banking Innovation From the Virtual Summit

The “Digital Banking in a Post-Pandemic World” live virtual summit included over four hours of jam-packed insights from leading banking executives on technology, fraud, and compliance. One area that permeated all of these topics was innovation––how innovation can be used to design better customer experiences, reduce risk, and boost compliance. But also how innovation can, in the wrong hands, be used by fraudsters looking to exploit banks. Part of banks’ challenge in the coming years will be to continue to harness AI and ML to improve efficiencies and CX while also busting the very fraudsters who are themselves using these capabilities for nefarious purposes. In case you missed the Summit, we gathered the eight most compelling quotes on the subject of innovation and banking from our diverse panel of speakers.

On ML and AI’s Power to Improve CX

“Here at Capital One, we’ve been using ML and AI to improve our fraud detection models, so that credit cards are declined less often. We’ve also used it to ensure people have an easier time opening accounts and getting authenticated when using our digital channels. We’re trying to incorporate the power of machine learning at the earliest stages of our product design to improve the customer experience.” -Bill McNulty, Operating Partner, Capital One Ventures

On Fighting AI Fraud With AI

“You should be looking at innovative new technology, looking at the different ways that algorithms can be changed and artificial intelligence can be manipulated to keep ahead of and identify new things that are starting to develop out in the fraud world. So you've got to keep staying on top of innovative technology, new solutions, the same way that the fraudsters are. What are the risks? What do you need to put in place to identify the risks? You need to be able to constantly look for anomalies and put that information together very quickly to prevent something from going forward. ” -Cassi Chandler, CEO, Vigeo Alliance, Former Bank of America & FBI Special Agent

On Preventing Synthetic Identity Theft With Technology

“Synthetic fraud is a growing problem. We suggest building your funnel by looking at what's happening with an onboarding event, starting with ID verification. We recommend collecting the identity document of the individual and having them to do a face comparison in live mode. AI algorithms can detect whether it’s a real person or a 3-D mask. And then we compare the selfie to the photo on the document or ID card. That strongly indicates that the person submitting the document is the owner of the document. Our recommendation is you always start with ID first because that's the basis of every other check that you're going to, including name, address, date of birth, et cetera.” -Sanjay Gupta, VP Global Head of Products and Corporate Development, Mitek

On the Trend Towards Simplification

“The coronavirus pandemic has led to some fundamental shifts, not just in consumer behavior but in terms of what banks are offering. There has been a two to three-time increase in the pace of simplification of processes. We’ve been talking about streamlining long before the pandemic.

"Without this unplanned social experiment, these changes [to bank processes] would have taken two to five years."

Without this unplanned social experiment, these changes would have taken two to five years to take hold. With the pandemic as an accelerator, major simplification of operations has occurred in a matter of months.” -Piyush Sharma, Associate Partner at McKinsey & Company

On True Omnichannel

“True omnichannel, as opposed to multichannel, means that customers can move seamlessly from one channel to the next without having to start all over again and repeat information. The best systems are allowing some type of recognition of the customer. For example, voice recognition technology can be used to avoid having to grill our customers with multiple questions that frustrate them. But even if we do have to ask security questions, we should at least be able to pick up where they left off on whatever channel they were previously on.” -Shep Hyken, Chief Amazement Officer, Shepard Presentations

On The Unspoken Risks of AI

“Artificial intelligence is one of the best tools we've seen come along to reshape our society. And it's also one of the best tools ever for a fraudster."

“Artificial intelligence is one of the best tools we've seen come along to reshape our society. And it's also one of the best tools ever for a fraudster. Artificial intelligence can actually create the person you want to create. We know that it has a machine learning capability that self-corrects and gets better over time. So that machine learning and self-awareness of artificial intelligence is an excellent tool for a fraudster who's trying to get into your bank, find information, use that identity, and get through the KYC and the onboarding the first time. Even once the bank catches the fraudster, AI makes it easy for them to keep reinventing themselves.” -Cassi Chandler, CEO, Vigeo Alliance, Former Bank of America & FBI Special Agent

On AI and Customer Journey Building

“What's incredibly important is to actually look at the customer journeys and the process journeys more holistically to actually think about how AI can be used to solve prediction problems and solve the same problems that we've been asking ourselves in banking over time. But framed as prediction problems and to create both centers of power within the way those processes can be redesigned. And so applying the technology tools in the right places and routing everything back to the customer experience journey and to the business value is fundamental.” -Federico Berruti, Partner at McKinsey & Company; Leader in Digital Service Operations and Automation for FIs

On Banks Embracing Agility

“What really stood out to me during this period of the pandemic is that banks of all sizes stepped up their agility to preserve the customer relationship. And they did it all while adhering to the rules and regulations. For example, with PPP loans, I saw some banks put together entire new strategies in a single weekend.” -Rich Corriss, Director of Customer Success, Lightico & Former VP, JP Morgan Chase