Banks haven't invested in capabilities to verify data: Accenture

Many banks have not invested in the capabilities to verify the validity and accuracy of their data, according to a report of Accenture, the leading global professional services company.

According to the report, Banking Technology Vision 2018, banks have always held a large volume of confidential data and are increasingly adding data from external, unstructured sources.

However, while more than nine out of 10 (94%) of the bankers surveyed said they are confident in the integrity of the sources of their data, the report found that half of the bankers aren’t doing enough to validate and ensure data quality.

"Only 11% trust their data is reliable, but don’t validate it; 16% try to validate their data, but aren’t sure of the quality; and 24% validate the data, but recognise they should do a lot more to ensure the quality," states the report.

In addition, while five in six bankers (84%) said they increasingly use data to drive critical and automated decision-making, more than three-quarters (78%) of those surveyed believe that these automated systems create new risks, such as fake data, external data manipulation and inherent bias.

"Inaccurate, unverified data will make banks vulnerable to false business insights that drive bad decisions,” said Alan McIntyre, senior managing director and head of Accenture’s banking practice, in a press statement.

Majority of bankers, more than 90%, believe that it’s important for employees and customers to understand the general principles used in AI-based decisioning.

"Nearly one-quarter (24%) of bankers said their bank plans to provide transparency for all areas where AI is used in the bank within two years, and an additional 29% said their bank plans to be fully transparent for all AI decisions that are customer-facing," states the report.

Transparency will be key, as more than two-thirds (71%) of surveyed bankers said the biggest benefit they expect from AI is that it will enable banks to build trust and confidence with their customers.

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