Basic Awareness learning course Digital Banking Training - Story of Digital Banking Innovations. | Shripad Vaidya | Skillshare

Basic Awareness learning course Digital Banking Training - Story of Digital Banking Innovations.

Shripad Vaidya, MNC Director

Basic Awareness learning course Digital Banking Training - Story of Digital Banking Innovations.

Shripad Vaidya, MNC Director

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7 Lessons (1h 9m)

    • 2. Storyline 1 Moving from Traditional Banking to New gen Banking 0321 949

    • 3. Storyline 2 Proliferation of Internet Banking, Mobile Banking, direct Banking 0321 950

    • 4. Storyline 3 Use of Social media in Banking and arrival of Fintech Firms 0321 951

    • 5. Storyline 4 Innovative technologies AI ML Blockchain Big data 0321 952

    • 6. Storyline 5 CIOs tech projects to complement digital Bank 0321 953


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About This Class

(2019 Update video added in the course) This is a basic level Digital Banking awareness course. It covers entire banking digital life-journey from front-end to back-end till 2018. Therefore it should generate enough confidence in you, of becoming aware of actual happenings in digital banking world.

As this course is like a base camp in Mountaineering, this course will make you conversant with all the various concepts used in new age innovation within Banking referred as Digital Banking.

However it is important to know that this knowledge is at a base level. But its a great start for your life, as you shall start speaking more confidently on banking innovations and digital banking than ever before . This course helps participant to seek awareness level understanding of Digital Banking in contemporary era both from fancy innovative names and also projects close to CIO's heart such as Back-end Modernization. This course gives practical view of what projects are done in front end as well as Back end to make organization digital.

Many times, Digital Banking or e-banking courses only evolves around front-end changes and fancy names, however this course gives you glimpse of projects from not only front end concepts such as Internet Banking, Mobile Banking, Direct Banking, Various Banking apps,  use of Social Media in Banking, Artificial Intelligence, Robotics, Chat-bots, Cognitive computing, Block-chain, Big Data, voice bio metrics etc ; however it also guides on how various back-end modernization programs are done to enable overall goals of digital Banking which includes legacy modernization, Integration, CRM, Document Imaging / OCR etc . This  course also gives examples of new fin-tech companies and non-banks threatening established banks.   

Course content post-Introduction lecture as follows 

Segment 1: - Moving from Traditional Banking to New-gen Banking. This segment covers of prior period when tradition banks were moving to Digital banking and why there was a need to become comprehensively digital. 

Segment 2: - Proliferation of Internet Banking, Mobile Banking and "Direct Banking" concept. This segment gives example of web based platforms used by banks. 

Segment 3: - Use of Social media in Banking and arrival of Fintech Firms. This segment gives examples of what multiple banks are doing in social media area to connect with customers such as Facebook, Twitter, YouTube and other channels. 

Segment 4: - Innovative technologies such as artificial intelligence, Internet of Things (IOT), Machine Learning, Block-chain, Big data etc. This segment highlights new fancy innovations in the technology space, and those technologies taking the entire banking industry by storm and good to seek experience of Bank of America, JPMC, Ubank, Deutsche Bank, Amazon, Jibun Bank, TD Bank etc

Segment 5: - Illustrative "CIO Wishlist" to complement or enable comprehensive digital Bank. This segment gives example of various technology projects done by CIOs at the front-office, middle-office and back-office to enable comprehensive coverage of digital banking.

Who shall benefit from this course: -

- Those job aspirants who want to enter job market esp in Banking segment and want to impress the interviewer assuming tough competition of candidates.
- Students of Commerce, Banking, Finance, management and economics to maintain practical view of the Banking world .
- Employees of a bank to sharpen their skills with knowledge of world's leading  banks and make best presentation to their bosses.
- Employees of any industry working in Banking and financials segment (e.g. Employees of IT companies working with BFS customers) 
- School Students for helping on their assignment and project, in case they choose to present for industry example  .  
- Research students who want to have practical view of how industry is using latest science and technology in banking world.
- Students of digital marketing, who want to know the practical usage of initiatives done by Banks in various country.  

Meet Your Teacher

Teacher Profile Image

Shripad Vaidya

MNC Director


Hello, I'm Shripad. I work as Consulting Director with Oracle Corporation. I have 25 years experience in Banking and finance field. I have worked with Banks of USA, UK, Netherlands, Australia, Singapore, India etc. I am happy to share my knowledge in this Digital Banking. I was chief Judging panelist for a Digital Banking contest of a NY based Magazine called "Global Finance" 

I am a yacht enthusiast and I have done extensive research on the Yachting Industry. 


See full profile

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1. STORY OF DIGITAL BANKING AN OVERVIEW 0321 948: my friends. My name is free and I'm in banking for lost 24 years. I have spent majority of my time in digital banking. I work in banks of US, UK, Australia, Netherlands and India. Let me tell you the story of how digital banking was involved from, say, 1950 to 2018 and friends. What's the real definition off digital Yankee? Is it when you have Internet and mobile in a bank? Is that when you have robots in your bank, absolutely no mint? When a bank becomes digital, it has to go through several rounds of front and Nazal is back and modernization in this fly segments official cover story off digital banking and in the first segment we shall govern as to why it was necessary for bangs to move from traditional banking. Two new generation banking. In the second segment, we will see us to how Internet banking, mobile banking change the water, all banking landscape, and we shall also have few examples for evolution off static banking or say non branch concept. In this third segment, we will discuss on the use of social media in banking and arrival off thinking Cos threatening traditional banks. In the Ford segment, we shall discuss on innovative technologies, suggests artificial intelligence or aboards dominating the future banking landscape. And in the last segment, we shall cover an illustrative issueless to complement the comprehensive digital banking entering changes in the physical banking infrastructure or branches. This sexual, we shall car some of the illustrated projects which are muster how within digital banking space. So friends let us initiate or storyline Number one we deters. I'm going from traditional banking toe new generation digital banking. 2. Storyline 1 Moving from Traditional Banking to New gen Banking 0321 949: my friends, This is our fourth story line on it begins with traditional branches off banks between the period of 1950 to 1980 and then we shall move you in the year off. Year 2000 when it was necessary for traditional banks to move through digital channels And within the segment, we shall color key drivers off moving to digital channels. We shall also call the thread soft drink companies. And then we shall talk on the needs of new James Y Z and Z Plus plus, however less fuss begin or story as early as 1950 post second World War period so over. Story begins from 1950. How will look at your screen? This was a big IBM machine in 1950 much before banks were trying to become digital in those times machines, whereas because one big room and can you imagine Hamas data, those machines could store absolutely no comparison off The current petered. However, it's no good to compare, and those times were different when the whole world do not have mood and, say, 25 computers. But that was the time when world was moving from analog to digital before we moved to introspect Digital banking. Let's see the progress of banks bulls 1950. This was a needle between, say, 1950 to 1980 when banks were trying to cope with the Hughes customer bays. High business volume. Next Strike Citra and Focus Off this bangs was merely automation off all the activities of a bank both at front and as well as back in. However, branches was still struggling with long queues mismatch fund balance on a daily basis. So let's visualize the spirit inside a branch of 1980. This was Peter between 1980 to 2000 when personal relationship with banks stopped. It was very obvious in conducting banking transactions. Not so much of digital customer profiling of the car indeed, and Langstaff could recognize the customer with their family background and past interactions very easily. However, was that sufficient in the New Age eater, or did he change your current period of time? Why did bang feel the need to gradually transit to a digital era? Why generation is changing requirements from previous generation are being replaced with needs of new generation, require mental baby boomers and Gen X and who's Jennette's? Someone was born till 1960. File of 70 is radically changing with General I, Gen Z and Gen Z Plus Plus, by the way, who's NZ and Zinzi Plus plus so Gen z someone was born till, say, 2000 engines e plus plus. Could be somebody was born there after I still say 2005. So things are moving from branch upgrade, Internet and mobile banking to a banking abs of social media and then to information such as artificial intelligence and robotics. Exit. Try etcetera. However, one of the key drivers of change in ranking, let us look at those perimeters of change. So, friends, let's die. What I was subject to a global arena population on this planet in the year 2000 was 6.1 billion and that grew up toe seven Fun six billion. By the year 2018 with a fertility rate of more than 2% per annum, I'm feeling at least 50% of people having their own bank account. Number of transactions grew multiple. However, the cost of transactions in a physical more was also increasing, so there was a need to reduce the cost. For example, in the year 2000. Asked what he says, Gen by Booz Allen and Hamilton cost of conducting one transaction in a Branch WAAS as high as 1.0 and US dollars then as it was reduced to 54 cents. If telephone banking was used and it became a fraction of cost, the banks were using Internet, and that cost was as Lisa's just 13 cents. Just compare that with the cost of contract, conducting a transaction in a brine for 1.8 U. S. Dollars. In addition to this problem, while banks were forced to reduce the cost, competition has started hitting their big banks. So with the arrival of new finger companies and telecom companies taking over the traditional banking customer, a few other things also became very important. Parameters. For example, growth of business customer centric city employing brand image were important elements for moving to digital space from a physical infrastructure. Bangs are facing a battle not only from competition within the own banking space, but also facing competition from non bangs were either operating as a bank or trying to become a full service bank. Starbucks has 13.3 million customer with my Star Bugs loyalty program on that program, has offered 30 million smart cards to its customer. So how much time it takes for Starbucks to convince a 30 million coffee customer to a bank in customer? By the way, they haven't used customer data with them and utilizing this data digitally, let's check some more examples off small off injured companies, for example, lending fintech companies such as Uber Lendingclub or Prosper. They can quickly offer loan in no time to his customer. And thats due to its network off lenders, were people at large like you and me, can banks truly compete with them? Amazon has plans to create 70 million banking customer in next five years. How difficult is it for Amazon or Facebook or Google to create a new banking organization? So it's a huge wake up call for traditional banks. The only Americans in life is to automate and digitize this operations, and that will reduce its cost. Bring customer Connick improved service as etcetera, etcetera. Let us now begin looking at what exactly this banks are doing and digital era 3. Storyline 2 Proliferation of Internet Banking, Mobile Banking, direct Banking 0321 950: friends vinyl. We have seen traditional banking and need for change to become digital. In the second segment, we shall go on specks just brought off Internet banking, mobile banking and rise up new concepts since 1996. Call last direct banking concept. We shall also cover you see it all. Smart ups in nontraditional banking area suggests budgeting, Financial planning investments extra extra going on A story of digital banking Creating Internet banking site was a default step in moving from branch banking, Telephone, banking toe Weber's banking Most year 2000 Internet banking sides where the key project across the world, however, initial. In 19 eighties, Citibank and chairs developed earlier, generation off Internet banking, and BANKOFAMERICA could acquire more than three million customers by 2001. Internet banking was a bird's word for every bang across this planet, and banks debated heavily whether Internet banking is mandatory or that's optional. So Internet banking was a major step in initiating this digital banking era. But by the way, that was only a start between the year 2000 to 2015. Every offering, which a physical branches offer wants tradition to online accepting pure Kasten actions which cannot be done online, and it has to be done only in the bronze or idiom. So while becoming digital, every bang had a true Web really state, which can be browsed either on a desktop or mobile as against global practice of receiving paper. Best nine statements in his or Harmel boards. Customers can now don't lower the entire data just at a principal button on the engineer and the science and the art of customer experience and a website became an important element in connecting with a customer. However, in the initial period, websites were very crowded and cluttered. Now, in the new Avatar websites, there become most customer friendly meet, well defined with minimum clicks and easy to navigate. Let's begin studying mobile banking and more details. Historically, first Mobile Bank was built by a ZEC republic dying call. Explain here, bang our whole suit. The German bankers, you know gold is doe shebang and all that was as early as 1990 More so. The bangs worldwide offered only SMS banking till 2010 and many banks and US and UK started providing holistic mobile banking solution only post 2010 for example. In UK, Barclays don't love the full fledged mobile banking in 2012 there is a battered I'm changing the way customers used to interact with a bang. In the past, banking and elections were more targeted towards a brunch, for example, a customer who danced, whether there is a branch near my house. Also a TM near my house is your branch up until three PM Is there a phone banking with you ? Ex cetera Excedrin and all of that is being taken or by simple questions, such as whether you're bang has a good mobile application. Other. If you have good mobile labs, whether you provide social media, connect Exeter extra and risked all the channels such as Branch it him, called center are nothing but complimenting his or her mobile banking. And by the way, this is bringing great change in the business model of the front end, as well as the bank in, and banks have to spend millions of dollars to make those changes. Let us also study the history off Internet only bangs. This Internet only bangs were gold asthmatic banks, as they did not have any brunch. So how could a customer, get a holistic banking support. All of these bangs, which can be called a static bangs on good ground support in terms off tell you thanking at the minimum. And some banks have some one or two branches, and some of these bangs also have minimum eight teams to support a customer. On a clear example of direct banking starting 1995 e g. G. Egg bank and fuzz idiotic in UK and the bank in US, I N G Bank and uh U S in Canada. Junon is behind NetBank in Japan and you Bank in Australia. In 2008 world's first mobile only bank was formed by D Boon Bank in Japan. It was formed as an alliance between Bank of Tokyo Mitsubishi and Kennedy I, the Japanese telecommunication company. This mobile only bank was supported by banning zone channels. Correa is telling banking and few branches of Bank of Tokyo, and let's talk off the little seen. This is a lettuce sensation called Bonzo Bank in UK, with smartphone only Bang. This was established in the year 2015. Aan has already taken many other banks by storm while we talk off Internet and mobile banking. Looking at the needs of new generation customer, many software windows have created specific abs to help them manage their finances. Let's look at examples off tweeting and mint who are B F M or personal financial management vendors, and they're supporting the needs of new generation in managing their finances with budgets and trained analysis. At the end of the day, mobile users of today will look for a valuation and he's or hard life for making quick and smart decisions. 4. Storyline 3 Use of Social media in Banking and arrival of Fintech Firms 0321 951: having seen a need of moving from traditional banking toe Nugent banking in the full story line on covering Internet banking and mobile banking, as well as direct banking in our second story line. Let's now see how banks are coping up with the huge growth off social media and also heavy competition from smaller fintech companies. In this third storyline, while Internet was making rounds in the stop and mobile environment, let's see the usage of social media bad banks. In brief, Vince Fargo was much ahead of the CO as the open the stage Coach Island. Ah, what your banking tour In 2005 Lloyds Bank in UK started social media game called Money for Life in 2010. Various bangs are now using social video for developing the customer relationship. It's always been a debate within the bankers whether social media can be used for transactions or it can be don't know for customer relationship. However, social media has been always under experimentation. Yes, be Bank in New Zealand was a pioneer in opening the first virtual phrasebook bank in the world. This bank was not only developing relationship with the customer but also promoting banking products. Taking off any greedy insists sharing bank events, resolving any account queries, by the way, which was a very bold step by a New Zealand bank and creating such a new channel called Facebook. And this was in addition to various channels such as steady banking, Indians, branches, etcetera, etcetera. My new customer data has to be sink dynamically with Facebook brunch. What world doesn't stop any such in oysters you want if it means an adventure at that point of time? And this was very early in the petered, thanks to years, be bank in New Zealand as early as in 2005 events far Will Bank initiated a virtual life experience in social media with its two D virtual Island, and that was called a stage coach. Island ST George Island was mean for young customers who educate themselves about money matters. It also saw does a social hub where users could meet each other and create friendship while they were socially trying to create friendship or Orkut or Facebook. Thank You LTD. Is a financial take and marketing services company headquartered in Austin, Texas. They don't have the side called Money Island, which is an online game designed to teach teens between the age off 8 to 14. This side has three specific learnings. First, saving and spending. Second. Earning and investing. I'm told using credit wisely. Therefore, some of these virtual games were created to educate young customers, not your brand of air mills. Develop any only relationship with a younger generation. Let's look at one case story or Facebook page. Created by Capital one, Capital One Financial Corporation is a bank holding company specialized in credit cards, auto loans, banking and saving products. It's headquartered at McLean. Leaving us. They're one of the leading banks and their Facebook pages, like by approximately 4.3 billion people. That's a big number. They cover very subjects such as financial education, explaining their financial product, announcing the capital one events suggesting new offers. How Miller Social Media Page can also turned very negative. Ask customers might open up their frustrations in a Facebook or a Twitter page a bang. So bangs out to be very careful about the social media, Really, With the state within social media banking segment, Trita plays an important role. The Twitter has been traditionally used by banks for very shot on quick brand building messages. Some things have gone ahead very aggressively. In treater. For example, Kotak Bank in India gives the combatants transaction. History also obtains the checkbook request. However, there is a widespread debate in the banking industry whether treater should be really used for relationship building or for banking transactions. One more social media channel used by bangs is you took channel everywhere. Can you compare music industry with banking industry in YouTube? Absolutely not. For example, some will see you again. May touch three billion views in this planet soon, and compared to that highest YouTube used ranking any banking industry is by state Bankoff India with 97 million years. Many times banks use YouTube for a video channel, mostly for customer relationship, financial education or broadcasting promotional offers. You took video seen in the screen of Always by TD Bank Canada and use a financial education for mortgage, and by now they have 49 billion viewers. Having seen social media in banking, let's now talk about micro size fintech companies that trade to the traditional banking is very visible now, with number off intake companies spreading across the world on this trinket companies. Roids Services suggests Pio tip your lending deposits, payments, personal financial management, bailing, accounting, etcetera. In fact, most of these start up companies that call is unicorns, and they have very limited stop members. But those guys are more tech savvy. Most of this fintech companies are funded by Venture Capitalist, and they connect very easily with the new generation. As the battle is passing from Gen X to Gen y Gen Z Bangs are finding very difficult to acquire new generation customers. So banks such as Wells Fargo or Bank of America and US Lloyds or Barclays in UK let's back or in their in Australia may like to either type with this fintech companies on some of these large banks are trying to buy this fintech companies Transparency Market research, such as that opportunity in the global peer to peer lending market, will be worth 900 billion years dollars by the end of 2024 this is just to compare $26 billion in 2015 so the market is anticipated to grow at a C A. G. R, or growth rate off 48% until 2024. one of the leading example of P two p lending is a company called US Lending Club. They have already crossed $33 billion by the end off 2017 on this can be compared as $8 billion at the end of 2014. On this, windy companies are running at a speed which very few banks can come up soon. Some of this Fintech companies will seek for a banking license, and they may eat up the market share off established High Street bangs. I remember a story of 2005 when one of my friend from Singapore was expecting a check off 100 years dollar from a U. S organization. He got a male in his supposed boards after 20 days of dispatch from California. And when he deposited this check, dying took 15 more days to credit him in this dollars. Finally, after 35 days, you gotta credit off 78 years dollars. Deducting multiple charges is there was a paper all across the globe. Then people do exist. He could have got his money in less than 3 to 4 working this and that, too, with much less charges by the way people does business off 227 billion account at the end of 2017 and it's growing rapidly. This is a huge number in comparison to large bangs in U. S. U K and Australia, and they cannot imagine going beyond 50 million customer bays. However, it may be only Apple to orange comparison. 5. Storyline 4 Innovative technologies AI ML Blockchain Big data 0321 952 : While the whole world focused on mobile Internet social media and rise off in Texas, new innovations have shaken up the entire banking industry one more time. In 1970 to 1990 there was a big debate, with their computers and Internet shall make manual workers obsolete. And now there is a big debate on a large debate whether robots will make Internet workers obsolete. By the way, debates are endless and they shall continue. Let us study best breed new technologies such as artificial intelligence machine learning, Blockchain big data In this Ford segment, let us now turn our attention to the EU's off. New innovation suggests artificial intelligence, robotics or, say, chat boats in banking. Many times, banks struggle to identify the customer profile with gigantic data at its exporter. So use off artificial intelligence is very usefully, and robots can answer many analytical questions. For example, what is the 3 60 degree of you off my account? How is my investment pattern looking like? By the way, Bank of America has created a virtual assistant call Erica to support customers or mobile phone. Erica uses artificial intelligence, predictive analytics, cognitive messaging to help customers to make payments, check balances, save money and pay on Debs. She will also Dari people to look for them. Fight, go, store and check out for educational videos and other contents. Royal Bank of Scotland is developing Chat Board called Lou Toe Answer. Customers Questions in near real time, This chat board uses IBM Batson Cognitive Tool, which means competence can learn as and when information changes. Cognitive systems are designed to solve problems the way human soul problems. So how is it different from artificial intelligence in Cold May to computing? The system provides information to help the experts decide, whereas in artificial intelligence system guides experts on the best course of action to be taken. Artificial intelligence using machine learning is a new free for scientists and techies of banking sector. As for technology, you don't calm, J. P. Morgan will use machine learning to perform trade across all its global equities algorithm instead of relying on hand coded rules Della by humans. The system, called US Ello exam, nods um has learned from billions of passed on actions on how to buy how to sell very fast and crucially, at the best price trials in Europe has showed that it really makes more money for them and also in banking. The entire credit scoring can be automated based on machine learning. These days, we also hear about Blockchain concept using cryptographic technology on what is Blockchain Blockchain technology. In simple words can be explained US data entry done in multiple databases at a single time . For example, when a sailor raises an invoice and a buyer that in wise data can be stored in a database of a buyer, databases off a Silla database or buyer banker database of Salamanca, database off any related government agency and all of that at a single time. Moreover, this transaction is safe, transparent and can be encrypted so that no third party can interested that in banking this can be very well used for warriors trade finance type productions when there are multiple parties involved at the same time. And it brings the more trust within multiple stakeholders to give some different financial services. Industry example. Australian Secretary Exchange Gold as a C has become the first major boards or a stock exchange announced the adoption of Blockchain technology for its stock settlement at duty, SCV used cryptography to record shareholdings and man is the clearing and settlement off all equity transactions. This will enable you saving to the cost of operation, bring more transparency and reduce the need off intermediaries. Let's discuss about Internet off things for banking. First of all, what is in the NATO things? In layman's stone, it is a machine too much in connectivity. For example, we shall have connected cars, connected homes, connected malls. In other words, all the computers, whether they're at home or in mall or in Bangor, say Michael, they shall doctor each other and help the customer. For example, Housewife do not have to worry whether in the current week she has sufficient velocity at home. In fact, home computers will notice that it will inform the shopping mall, and then it will connect to the bank to pay on her behalf. Everything truly automated and here banking re play a major role, and that's not only for payment but also based on the ready data. Banks can now give targeted offers and wise and rewards to its customer. Previously in I T Sector, we have seen large projects in data dollar dollars and business intelligence. Let's look at an important innovation Using finance Industry call is big data Now Big Data is analyzing Chevy buys of structured and unstructured data, including next numeric digital Al Gore to make video wise data Excedrin and what is Debbie Bides? One gigabytes is equal to 0.909495 Terabytes and tape it buys in ascending order can be defined us gigabytes. Then comes Jimmy Bites. Then comes Terra Lights and then it is stable. Buys Asper Ingraham Micro Advisors. Not calm. Big data can be used in various segments of banking, for example, fraud, detection, compliance and regulatory customer segmentation, personalized marketing and risk management. So Friends Bankoff America is actually experiencing big data project in various areas, for example, improving customer retention, employing time and accuracy of financial forecasting. Let's look at how wise biometrics is playing a major role in life for people as well as banks. Nuance Corporation developed wise by metrics application for BBB a Bancomer recently, and this was to strengthen their pension system by improving the process off proof off life verification. This means a pensioner can easily identify himself with just a simple phone call, and computer will recognize the voice, and that can be considered as an evidence that pensioner is alive. How cool is that for our Grand Pops and grannies, isn't it? By now, we have seen many innovations in banking, such as desktop off on mobile. Best Internet. Finn takes aberrations. Social media in banking, artificial intelligence, robotics, machine learning, Blockchain big data exit, dra How they were. Can someone stop at that fancy intuition names? Is that what makes of nine fully digital, absolutely not CEO off a bank has a you stars for enabling entire digital landscape at the front end as well as at the back end? A typical meat size bank in US may have anything between 500 to 900 different idea applications and the amount of interactivity with changing technology. Landscape is a memoir task. In the next segment, we shall see a few glimpses off a Leicester two areas which may impact our digital world 6. Storyline 5 CIOs tech projects to complement digital Bank 0321 953: friends. Welcome to the finals storyline off digital banking landscape. As we have seen in the last segment, banks have to go through very fancy, you know, edgy projects to implement various new generation. Ideas on those ideas could include artificial intelligence, Blockchain machine learning, big data, etcetera. However, it is important that bangs also conduct major project in terms of physical infrastructure back in more organizations and really a steak 31 applications, especially to maintain straight through processing on the front line and in the larger goal of becoming digital, all of those projects become very modern. Let us go through some illustrative items, which are essential for a buying toe. Become fully digital. So with banking going from branches to digital or Internet and social media, what exactly is the future of this branches and stores? Do these branches lose their need and existence? Do tellers and branch manager lose their jobs? Well, maybe true, but only partially. Most of these branches in at once countries are becoming relationship centers what they can be also called as meeting places. And that's a place where customer can discuss about the best investment plan. Financial location, planning for family funds, etcetera. They're no longer in traditional gas deposit on a cash withdrawal transactions. In addition to this, branches are slowly turning to become self assisted channel. And that's what conducting transaction with the help off latest techno gadgets. However, everything is not it changed, but slowly it's changing. Let's look at future generation brunch. For example. Brad, a school next off Brazil have any knowing to branch with multi a ball, and they also have a small reward name linked to 37 And this is one of the best example off self assisted brunch where robos and ABS are guiding customer using predictive analysis, machine learning artificial intelligence before customer into the pre mice is bank would already know that 3 60 degree view off a customer and start responding to his or her needs just to continue on our innovation story or physical branches. Bank of America is experimenting with completely automated branches with no on site employees bank because already open so called Tell Earless Robo Branch one in Minneapolis. I'm two in Denver. However, in the year 2018 this branches are more experimental. In next 5 to 10 years, more branches will become combination off self assisted branches and relationship centers. Have you ever some branches mrs to exist? Having seen few New Age innovations, let's now come to more practical view off traditional channels where see I would spend his money. Previously, idiom machines used to do a major rule for cash handling in a bank. However, idiom machines are now Sina's intelligent relationship. Boggs Post Banking hours Hollywood Last 15 years Bankers having debating whether they should really investing idiom machines oh, are digital currencies are really gaining ground or cash? Digital banking means online. Dynamic result with instant decision and a parole. For example, get your car loan instantly within 60 seconds, or result all your queries in five seconds, either actually banking, Internet branches, chat boards or any of the channel. While marketing things can do all this fancy announcements, it is important for banks to respond with a back and support. Most of the banks did automation starting your 1980 and therefore many bangs are now stuck with the old legacy applications made in Kabul, gold or huge men friends and these infrastructural needs to change massively in terms off, take architecture as well. Most of the banks have massive transformation program to set their house in order, and this budgets could cost as nearly 100 million plus or could be half a $1,000,000,000 a time. Previously, banks had only one or two channels of interaction, such as branches or call centers. However, with plateau or off various new channels, it is important for banks to integrate with multiple channels of customer interaction. And this may be up early cable any time during the lifetime of a customer journey. For example, when you're acquiring a new customer when you're servicing a customer when you're responding to his Cleary's, when you're closing the count extra extra, it is essential for CEO off a bearing to think off multi channel integration when banks plan to go digital and no bang can be digital and automated Bank is not automated from back off. His middle offices of front office, similar to enterprise wide transformation and multi channel integration, bangs out to ensure that payment systems are also integrated to suit the needs of the customer. And this may be true for every type of connections. For example, is shopping in wise collection from transport bill pay, Please God, simple check or cash payments. Exit Brexit drop Customers are demanding banks to support them holistically and comprehensively. Moreover, bangs out to also devil of several layers of payment system, for example. Amen. Get trees regulatory needs into buying Settlement International Fund transport on stock Exchange knees on many other things. While we talk of videos integrations. I want you to give you some glimpse about many other projects which bangs automation teams runs on. For example, let us see the usage of document Emei ging in banking and that in walls also optical character recognition, or OCR. And that's very useful for banking and various Papa. This, such as loan documentation, know your customer documentation and we'll use other customer related didn't forest. Digital banking involves integration of documents with the score banking system to give booking quick view and good decision making. While we have seen a lot of new initiatives within the bearing, integration off external system, which are not in the control of bangs, is a major priority for CEO off bank, for example, many bangs across the globe collaborate with swift messaging system for international payments and bangs out to necessarily integrate with those messaging. If they want to continue doing the fast international connections in Australia. Banks type with a corporation called Valets Corporation for Ready Property Valuation, and all of such integrations are in to be at a straight through processing nor STP. And all of this helps to give a quick view and reserves to the customer. Customer relationship management, or CRM software plays an important role in helping sales and marketing teams to connect with the customer. Every decade starting from 1990 this CRM software has gone for a radical change. Previously this year, UM application was merely storing customer profile data and now slowly started connecting with marketing campaigns and or people of time. It got link with entire customer life cycle. In the current generation, CRM has to connect customer using social media, in addition to the CRM software is are now aligned to incorporate big data analytics and predictive computing to forecast on the next move off customer. So it is essential for banks to enrich CR IMS affairs after every few years. So, friends, we have come to the finishing line off entire digital banking story while concluding I can say that this innovation journey, Shelly always continue with new avatars, new technologies, new buzzwords every year. See, Iot shall be challenged with the problems never seen before. And it is important for all of us that students of banking to study and implement the best part applicable to this journey and that will bring about the change to this planet with new generation innovation. Thank you, friends, as you have been wonderful partners in my journey off digital banking storyline, do send your feedback on this coverage and let's read out in 7. DIGITAL BANKING 2019 UPDATE VIDEO: Hi, friends. Welcome to this 2000 and 19 update video. This video talks about various industry examples of innovations in general, corporate world as well as digital banking area. You can choose to go through this video either at the start of this course or at the end, as per your own choice. Do let us know whether you like this video. Our innovation themes in this video include artificial intelligence machine learning chat, But I o. T Blockchain big data, mobile banking, Internet banking, etcetera. Let us begin our journey with few interesting examples. As you know, we human being have taught computers to generate artificial intelligence, and this is like when your mother taught you meaning of apple flower or a puppy when you were a kid. This learning by computers is similar to traditional artificial intelligence. However, when you learn on your own from this planet and store everything in your mind. That phenomenon is similar to machine learning, deep learning or re enforceable learning by computers. In 1996 chess grandmaster Garry Kasparov beat IBM is Deep Blue Machine in a game of chess. But immediately next year in 1997 IBM deep Blue could beat Garry Kasparov. However, IBM had put extensive research for eight years to come close to Gary Kasparov. Super brain power. Those eight years were spent in researching and teaching various strategies and patterns. A chess player with highest i Q can probably execute, so I ve EMS Deep Blue was using traditional artificial intelligence, which guides every rule pattern and strategy to a computer. However, post 2000 and 16 Google's Alfa zero can beat any chess opponent with highest I Q on the planet within just four hours in 1996 when IBM developed Deep blue chess game that was using traditional artificial intelligence. Whereas today's programs from Google, which beats opponents in four hours, is called as machine learning or deep learning. Therefore, the latest versions of computer programs learn millions of patterns, strategies and various rules and evolve the best way to be best human brain in just four hours. Therefore, when a computer learns all the rules and regulation of a credit evaluation process in a bank and feeds all those rules and patterns in its memory, it's similar to using traditional artificial intelligence. However, when computer learns all those rules of credit evaluation and also auto learns all the exceptions which credit officers have utilized. Beyond the stated rules, it is similar to the incremental enrichment in machine learning. Higher stages of incremental learnings. Concepts are also called as deep learning or re enforceable learning. Using traditional artificial intelligence, machine learning, biometrics and risk analytics, a bank in China called My Bank has created a theme of three is to one is 20 and what is three is to one is 20 It means that any small and medium business entrepreneur can apply for a loan within three minutes. Their loan gets processed in just one minute and this loan is dispersed in zero minutes. In fact, 30 million SMEs and farmers in China will get advantage of three is to one is 20 scheme in next three years in China, artificial intelligence, machine learning, facial recognition and big data has been used to store access and analyze data of 1,000,000,000 plus Chinese people. China is on the next level of evolution as they are developing social scoring, which is much more intense coverage than financial credit scoring for each person in China . Since 1960 scientists could send satellites to the space while spaceflights travel in the space orbit. A ground control team can always control and track satellite navigation. Therefore, Ground Control Team has replica of every movements of the space vehicle in the sky. We can call that as virtual twin of the rial spaceflight in the digital era. Human being has invented similar concept called Digital Twin. While you visit any mall, companies like Google can track you extensively. However, expensive tracking of space shuttle in form of digital Twin has been now replicated with much cheaper but effective digital version. Let's take an example of a company called Experian, which provide credit scoring for individual customer of banking sector. Experian is experimenting on a concept of digital twin for analyzing every individual they deal with on a singles day on November 11th. In 2000 and 19 more than 18 million Chinese people used facial recognition called Smile and Pay, and Alipay Company, which is part of ali baba dot com Facial recognition, help them to make a payment without swiping of any plastic card. This was a new era of alternative form of transaction processing. In just one single day banking industry is evolving a new business line, which is replacement to plastic card and can be offered in the form of line of credit. In this digital era, banks can offer credit to customers without use of any plastic card, and this transaction can be authenticated by use of biometrics. A very innovative financial wellness company in USA called MoveOn has created a product called Emergency Cash, which offers emergency credit to customer once he or she enters shopping mall. This banking product uses GPS, artificial intelligence and financial behavior tracking, which helps customer with immediate credit if they are out of cash or credit. Let us study various use cases and examples where banking industry used artificial intelligence or machine learning. We shall use abbreviations such as A i N M l for artificial intelligence or machine learning. Henceforth, many banks offer credit card reward points based on which a lot of freebies and gifts can be given. This ensures customer relationship customer connect and helps banks to develop their customer friendly brand. However, many times these rewards are not utilized by bank. Therefore, HSBC used A i M L Technology to increase the reward points utilization. HSBC and Marty's motivations have created a. I. M. L Driven study to find behavior of customer over Internet and call center. HSBC targeted specific emails offering either of travel, merchandise, cash or gift as a reward point for credit card. This initiative was very successful when they got 75% response on the 75,000 targeted emails they sent to customers. Previously, the success rate of reward point usage without a i m L was less than 50%. Banking industry need to spend billions of dollars to avoid frauds from the hackers and fraudsters. Machine learning plays a huge learning as it automatically accumulates and tracks new type of frauds not stored in computers. Before Citibank has partnered with a tech company called Feeds A to provide security against fraud for various domestic and cross border payments across the globe. In a split second, Citibank is now in a position to identify monitor track alert act on frauds from millions of data points using feeds a state of the art machine learning engine. Managing your personal money has never been easy. A lot of people lose their hard earned money without enough financial education. Therefore, many software companies have developed personal financial management software to help investors in growing their money and to achieve various financial goals set by the individual. Companies such as You totally have developed a I based advanced personal financial management engines, which takes inputs from thousands of sources, study market patterns, study customer own goals and usage patterns, and recommend best portfolio solutions when banks offer loans to customers. Credit scoring of a customer is obvious, however, with millions of new customers without any readily available credit score, especially for small and medium business owners. Banks find it very difficult to evaluate a customer in split seconds with the help of social scoring in China and Financials, a subsidiary of Ali baba dot com, is in a position to do credit scoring in less than a minute. Studying more than 12,000 patterns of customer behavior, the I N M L Technologies are extensively helping for underbanked people with no ready scoring available with traditional financial scoring companies. This has created new customer base on millions of customers, which did not take loans from traditional banks but depended more on private money lenders using robo advisory services and utilizing the power of a I N. M. L. A Singapore based bank, called OCBC is offering new services to manage the investment portfolio of stocks and bonds . This auto adviser demonstrates 28 different ways in which investment portfolio can be structured and asked customer to choose investment pattern of one of the financial models from 28 listed models based on customer's preferences and attitude. However, it does not end with the selection of a financial investment model by the customer, but goes on to assess and track the performance of the investment portfolio with regular frequency. As per the need, Robo Advisor also suggests reshuffling or restructuring the portfolio. This ensures customer to always remain alert and achieve best results within the investment horizon. Various banks are now using chat bought to communicate with millions of customers. Chad bought uses various technologies such as artificial intelligence, machine learning, natural language processing, big data and analytics, augmented reality and virtual reality. Let us see how some banks are using chatbots. Commonwealth Bank of Australia has developed 200 different tasks on chatbots called C before responding to customer C. B. A has included simple questions such as tell me about saving product of C b A or tell me your balance to transactions such as make a fund transfer. This C batch had bought is now available for 6.2 million customers of C B. A. U. S. A. Which provides financial services to military community, has developed chatbots, which can recognize multiple accents and also messy communication. Using natural language processing, USA Chatbots can identify spending patterns history of individual customers as well. Erica The chat bought of Bank of America is one of the best examples of intelligent usage of chatbots. Erica not only assists the normal banking transaction but also guide customers with the financial advice. For example, Erica can advise customers to transfer excess money in his saving account into a demand deposit account. While advising a higher return, Erica also guides customers on typical monthly expenses. Based on his previous expenditure pattern, Erica is one of the best industry examples of using I M l natural language processing Big Data analytics, including predictive computing, etcetera. Nowadays, banks are helping customers not only for providing financial advice but also proactively give best discount offers while you are buying shoes or garment in a mall, this essentially means that banks use GPS to track customers. Use A i M L to assess customers. Shopping trends. Use big data with predictive analytics to anticipate the future expenses trends. And they have tie up with multiple industries for offering good discount if customers use banks, credit card or bank account. Therefore, mobile or Internet banking has changed from earlier time Reactive Web portal with history of transactions to that of financial advisory and value. Creating Web real estate. A bank in Spain called BBVA has developed friction less invisible payment whereby customer can plan his visit to the restaurant by booking his seat ordering for food from his mobile collect food on the counter. As soon as he reaches the counter, customer can split his bill on the spot in case there are two or more people. Also, facial recognition software ensures to identify a customer and automatically debits the amount to the account or credit card of the customer. Therefore, the whole experience is friction less as customer do not have to wait over the counter for food or making the payment or splitting the bill. Banks are now helping customers not only for providing financial advice but also proactively give best discount offers while you are buying shoes or garment in a mall. This essentially means that banks use GPS to track customers. Use a i M L. To assess customers. Shopping trends. Use big data with predictive analytics to anticipate the future expenses trends. And they have tie up with multiple industries for offering good discount if customers use banks, credit card or a bank account. Internet of Things or I O. T. Is taking world by storms, therefore, self driven car Smart home drone based farming Automated courier services are changing the way in which this planet is reshaping its journey. Banking is behind the curve in usage of I O. T. However, time is not too far when we shall see full fledged I ot usage in banking. Let's see some examples in banking of i o T usage. In terms of smart beacons, A smart beacon is a small proximity beacon device that sends a signal using Bluetooth technology. When a smartphone or tablet is in the beacons range, it triggers a notification on the device. When customer is near a branch, banks speaking can identify a customer and send him or hurrican textual signals such as may I help you or beacons can inform various service counters of the branch in case customer is in shopping. Mall beacons can communicate the discounts and cash back on usage of banks. Credit card In the non banking world, i O. T is already in advanced stage in many industries, however, banking uses very minimal I ot and currently I ot in banks is more confined to the use of smart beacons. Westpac Bank in Australia has started using beacons to identify and greet customers to serve better. Chase Bank in USA can facilitate customers identifying the services they would like to opt while they near the Chase branch. Barclays in UK help disabled customers to navigate to the branch. US Bank Personalize is the entire smart beacon experience to the customer and Citibank's and promotional offers with customized messaging using beacons. Typically, insurance companies price their car insurance premium based on make of the car numbers of years used any accident history and few other risk parameters. However teal, its software providers from USA, have created new i ot based policy which contract the behavior of the driver of the car using i O. T, which means If Driver has driven his car satisfactorily, he may get good discount next year as I ot based sensors installed in the car give that relevant data. This technology also enables customer to get quick claims settlement in case of accident at the remote location. Blockchain is a system in which a record of transactions maintained across several computers that are linked in a peer to peer network. For example, if any purchases made by Importer and he records this purchase transaction in his computers . Blockchain concept enables the same record to be stored in computers of many people at the same time. This can include importer, exporter, central bank of importers, country, central Bank of exporters, country importers, bank exporter's bank, corresponding bank as long as each of those are in the same computer network. Called as Blockchain, this feature enables transparency, speed and security of the transaction. Company named Ripple connects banks and payment providers via Blockchain network, called Ripple Net, to provide sending and receiving money. Globally, 100 plus banks such as Bank of America, American Express, Banco Santander Yes Bank RBC, National Bank of Australia, BBV A Spain and Mexico Bank Santander etcetera have already joined this network for Blockchain cross border funds transfers. A digital trade finance platform called We dot Trade has already created Blockchain platform for trade finance activity and the members include banks such as Deutsche Bank, HSBC, KBC, Natixis, Nordea, Rabobank, Santander, Soc at a General UniCredit etcetera. I CBC Bank in China is working on industrywide registry for K Y C records, which can be shared across multiple constituents using Blockchain. Australian Stock Exchange or a SC has already created comprehensive clearing and settlement function using Blockchain. And now A S E is on its journey to create Blockchain based infrastructure for its stock trading as well. Big data is a term that describes the large volume of data, both structured and unstructured, that inundates a business on a day to day basis. These days, CEO of a bank gets stating not only from traditional sources such as text and numbers from Legacy Banking Platform or M. I s reports, but also gets data in form of video, audio, biometrics, social media, feed, etcetera, big data technology framework enables people to college and analyze huge data from all different sources and can provide value from the data so collected For example, big data can identify the next best possible purchase action of the customer using Predictive analytics. Sometimes you wonder as to how Internet can track me and offer me discounts or loyalty coupon quickly. Many would say that it's because of big data. However, big data cannot make wonders on its own. While you talk to a chatbots, AI or ML can easily identify your spending pattern or transaction behavior in your bank account. Moreover, natural language Processing or NLP can identify tone of your expressions. I ot can track your smart gadgets and using all these technologies. Big data can now predict your next best action. Therefore, while Big Data can very easily identify your behavior, your interactions, your future action and instantly give you offers or loyalty coupons, big data is never alone. Big data always gives you value for money as it collaborates with the I M, L, I, O, T and L P Chatbots and many other technological advances. Using big data, TD Bank could create a data lake, and this Data lake centralized the entire customer life cycle data in one big store instead of multiple pockets. This not only save huge infrastructure cost for TD but also helped to optimize its data usage across all the different departments of TD Bank. TD Bank can now run customer centric digital services such as it's my spend at Very Efficiently collaborating with big data ai nml In the Times to come, TD Bank will be able to help customer journey comprehensively starting from customer acquisition to customer servicing. This will help its customer relationship and improved market share in the long run. Using big data, banks are in a position to analyze fax and reports which they never dreamt before. For example, banks can now analyze customer opinion based on expressions shared by customers on social media about their bank. Bank can now predict customers next best action much in advance. Big data can be proactively used for any probable fraud warnings. Big data can be exploratory. For example, if we change rate of interest, how many customers would redeem their deposits prior to maturity Date? Big data can also determine the customers lifetime value or say how profitable is a specific customer for our bank. Some of the scamsters in Russia have created financial pyramid or multi level marketing for selling investment schemes these Ponzi schemes has created lot of uproar in Russia as common investors tend to lose money in a weak link of money chain. Central Bank of Russia is using big data technology to identify such fraudsters and take corrective actions as early in the life cycle as possible. With this, we come to end of this video. Do let us know your feedback and let's connect again. This is Voice of David from TVs and trip A truly thanks the speaker and all of you for listening to this video.