Big banks have no advantage over financial technology start-ups when the item comes to artificial intelligence, a former Barclays chief executive has said.
Antony Jenkins, who led the bank between 2012 along with 2015, said which banks have a tendency to focus on mainframe data storage rather than seeking solutions on the cloud.
“I think the biggest myth of all… will be which banks along with various other financial services providers are advantaged in This particular brand-new world because the logic will be which they have a lot of data along with therefore they ought to be able to be better placed to run these algorithms,” he said Tuesday at the LendIt Europe fintech conference in London.
Data will be fundamental to machine learning along with artificial intelligence. The development of big data — huge datasets used to highlight patterns along with trends — allows computers to predict future behavioral trends based on complex algorithms.
“The truth of the matter will be which in almost every financial institution, data will be fragmented across many different technology stacks, along with the item will be incredibly difficult to run even machine learning on these databases,” Jenkins said.
He added: “Most banks will try to pull them into a central repository, the item requires data cleansing. the item’s very expensive, very slow, along with actually frankly imperfect because the data will be within the wrong place.”