Artificial intelligence could in the coming future be empowered to be a new way of rather making decisions across Barclays’ trading, lending as well as risk management based divisions after the UK bank started operating under the flagship customer of AI simulation firm Simudyne Technology.

Barclays signs up artificial intelligence to aid bankers

Simudyne does permit banks to create computer models that do simulate millions of possible future scenarios, thus allowing them to test how individual factors will indeed perform and also interact with each other in a vast array of situations. At the moment, banks do largely rely on models that do extrapolate data from historical data, complemented by complex as well as expensive simulations in niche areas such as valuing options. Simulations that are based on agent-based modeling techniques which allow banks to account for the ability of agents — the people, firms, traders and so on and also to deviate from rationality, optimize or exploit their respective environment.

If one were to go by a policy change, these models can indeed be made use of to allow machine intelligence to stay ahead of the human responses. The bank does hope agent-based models that would indeed help to spot as well as prepare for risks arising from dynamic as well as large, direct as well as contingent counter-party exposures. For lending purposes, Simudyne’s software does allow banks to build simulations based on inputs such as household incomes, how people do spend their money and how they also behave as borrowers. Barclays no doubt does explore how to model the actions of a fraudster.

Benefits of AI in banking

Barclays believes in pursuing technology that does look into users talking to a robot computer system in order to make money transfers.

An artificial intelligence system which is similar to Apple’s iPhone personal assistant, Siri could be made use of so that people will be able to talk to a device and also receive the information they do ask for.

Consumers will soon be entering a world whereby we may not have to be physically touching a device in order to execute transactions or to be able to engage with computers.

As far as a new app or device from Barclays is concerned, it is understood it is being actively pursued.

Several U.S. technology giants have been able to work to improve the capabilities of their artificial intelligence systems. Apple has improved upon Siri. Barclays could potentially design apps that do integrate with such systems, thus allowing users to do banking by talking to their mobile devices.

Barclays has rather steadily promoted its push into the tech space, with a raft, of course, mobile apps that have been already launched.

Barclays’ Pingit in 2012 – an app that lets customers of any bank send money to each other via their mobile devices and even Twitter is also in the offing.

The Barclays digital head said the company has around 50 teams across different sections of the bank thus helping to make the firm agile in the tech space.