Robots Advance In Banking – Wall Street

Stock Trading Robots

Robotics, designed by artificial-intelligence and machine-learning, is demonstrating to become a game-changer that could bring exclusive efficiencies operational to the financial-services- industry.

Investment into robotics increased by 116% in 2016

Robotics process automation may bring time which is notable cost efficiency improve productivity and operational improvements to financial institutions the use of robotics in financial services is gathering pace but many banks remain into the very early phases of adoption

Aside people, robots are here! Robots are turning out to be smarter, faster as well as cheaper and their deployment across industrial usage such as for instance automotive as well as electronics has surged in the last couple of years. From commercial robots to cars that are self-driving robotics technology is turning out to be more intellectual enabled that replicate human skills as well as cleverness.

Funding for Robotics

Base on research the number of funding deals in robotics worldwide nearly doubled from $274 million in 2015 to $588 million in 2016. The investment growth in 2015 was 116%, as compared to 155 per cent in 2016.

The International-Federation of Robotics approximation that there will be a total supply of 1.3 million industrial robots between 2017 and 2019, forecasting a growth that is average of 14% in the supply of robots from 2018 to 2019. In 2015, the worldwide yearly supply of industrial robots increased by 255,000, a 16% growth from the previous year.

While robotics equipment has found increasing applications that are industrial the final couple of years, its entry into the services sector, especially financial services, is very present. This technology is currently recognized to create fundamental changes to your way banks operate heralding an era that is new self-service banking. For instance, millenials have actually high digital expectations from their banks. They’re prone to be more willing to engage with robots for financial transactions and prepared to rely them for complex activities.

To reach these prospects, banks are making use of robots in several processes. There obviously was what we refer to that as software-programs robotics process automation, that will be becoming a game changer in back end computer. Humanoid-robots are offering customer service at choose branches, bringing special element to clients. Also, robo-experts are now being deployed in areas such as investment advisory.

Robots for innovative customer service

Robots have unique advantages they are time and cost efficient, enhance productivity, deliver superior results, and can work without sleep over repeated tasks. When enabled with intellectual computing, artificial intelligence AI, and machine learning capabilities, robots might be trained to operate autonomously. They can also learn how to enhance performance and accuracy with little or no input that is human. Additionally, multi-lingual language processing and voice recognition abilities enable robots to communicate and conduct seemingly intelligent conversations with customers.

Summary

Banks should not just focus on cost advantages, or disadvantages, they additionally need to enhance their competition by ensuring that they make it possible for higher precision, dependability, and improve service capability, while up scaling their cognitive ability through AI, deep learning and robotics.

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Robots That Teach Each Other

 

There is new breakthrough technology that is reshaping the robotic world in terms of robots that teach each other to grasp everyday objects and learn different environments.

They are using the cloud to upload data that the robots are learning so other robots can gain the same information. Researchers are calling it the “Robo-Internet” and they feel it will reshape the robotic world as we know it today.

Most robots are programmed to be able to do one job and allowing them the ability to learn from other robots will bring to them other skill sets to be able to perform in unstructured environments such as homes and health care facilities. The robots scan and rescan everyday objects such as hairbrushes and water bottles and learn how to pick up the objects and maneuver them around. They also learn the layouts and designs of new environments that help them maneuver through without hitting objects and people.

RoboEarth

The Robo-internet is a collective database of web apps that is used for robotic knowledge base where other robots in different locations can enter to gain knowledge from other robots. RoboEarth is one example of a cloud-based platform in which robots learn about different environments from other robots.

These scientists have created a cloud-based database where robots teach each other how to learn new skills and be able to perform new jobs without ever having done it before. One robot moves around a new environment scanning the entirety of the space and uploads it to RoboEarth where another robot can ping it at any time to learn what the first robot shared.

“Million Object Challenge”

The Million Object Challenge is based on Stefanie Tellex’s research out of Brown University where she is using her robot named Baxter to learn how to pick up everyday objects and teach other robots how to be useful in everyday life. For robots to learn it takes extreme repetition so pushing their learned behavior throughout other labs that have robots learning the same concepts saves time and money.

Tellex states that there are over three hundred different “Baxter’s” around the world in different labs and they are collectively learning together to be more useful in everyday life. They share coded information online through researcher driven mathematical data that is created using the robots infrared sensors on their bodies and cameras on their arms that scan different objects to learn how to grasp them and pick them up.

Robotics today is growing by leaps and bounds because of the ability that is gained through the use of the internet and the sharing of information that is gained through its use. Robots teach each other via uploaded information to the cloud where other robots can gain the same learned data without ever doing the actual task before. This gives a great boost to researchers who can share with each other what they have learned and collectively propel their robotic knowledge into the future.

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ROBOS and Banks: The Dawning of a New Time

Will Banks Use More Robots

The use of Robo advisors is gaining prominence in mainstream banking circles. Clients have several options available to them when picking investment products. These include the go-it-alone approach where individuals are responsible for the management of their own portfolio of stocks, bonds, cash, indices, commodities etc. This option is best suited to professionals, or investors who understand the intricacies of the financial markets.

The other option is a choice between using traditional banks and investment gurus on the one hand, or the modern-day upgrades with things like discount brokerages. While there is certainly merit in all of these options, many investors are not totally sold on either option. A fusion of these investment possibilities which encompasses online advice with a self-directed brokerage is increasingly preferred by clients.

Fintech Disrupting Traditional Banking

FinTech has dramatically revolutionized the investment landscape, and banking operations are front and centre. New-age investors prefer having a say in how their money is managed, and this need has not been fully satisfied with the options listed above. Instead, clients prefer hybrid options known as Robo advisors. The concept of a Robo advisor is largely misunderstood by mainstream investors. A Robo advisor does not remove the human element from investing and portfolio management.

True to form, Robo advisors do not require clients to meet with investment gurus face-to-face. It is a convenience-based element at play, and one that makes it easier for anyone to instantly initiate trades at the click of a button. Most of the communication via Robo advisors is conducted through secure online connections and chat services such as Skype, messenger, and the like.

More Control Over Financial Portfolios

The Canadian investment scene is slowly adapting to this modern-day technology, but only the Bank of Montréal has infused Robo advisor technology as part of its investments toolkit. FinTech is leaps and bounds ahead of traditional banking. It is a major disruptive force in the financial world, and it caters to a large under-banked or unbanked sector of society. In Canada, the US and across Europe, clients are looking for easier ways to manage their financial portfolios, while still maintaining control over trades that are executed.

The conventional system of entrusting all of one’s finances to a fund manager with a bias towards certain stocks, ETFs or mutual funds is losing traction. Today, investors want to have a modicum of control over their portfolio, and they don’t want the emotional component, or the bias via the investment advisor. A Robo advisor serves this purpose well. Provided the range of financial assets available to the client is all-encompassing, a Robo advisor can pick the appropriate stocks based on client specifications. Hard data is analysed instantly, and the best investment options are provided to the client.

Robo Advisors with Canadian Banks

The do-it-yourself model cannot be ignored by banks for much longer. The explosive growth of FinTech investment paradigms has already caused multiple banks like HSBC, Barclays, Standard Chartered, Goldman Sachs and others to stand up and take notice. Banks are implementing protocols to allow Robo advisors as part of their investment toolkit. One of the leading asset management companies is BMO. What many clients don’t know, is that BMO also has a robo advisor. Through use of this modern-day technology, BMO can now offer exchange traded funds across multiple portfolios.

It is the oldest bank in Canada, and also the first to adopt new-age technologies. Clients can easily synchronize their BMO online banking summary with their investment accounts for maximum functionality. A wide range of exchange traded funds is available, and the provision of Robo advisors makes it easy to use SmartFolio accounts. Account types include RRSP, TFSA, and RESP. By allowing customers to personalize their financial portfolios, it’s akin to a Robo advisor. This is the way Canadian investors are choosing to go, and many other big banks are now taking notice.

The post ROBOS and Banks: The Dawning of a New Time appeared first on Wall Street.

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