Activating Intelligence in Financial Services

In Part 4 of my vlog series on AI and Financial Services, I look at the development perspective of our horizontal industry strategy.

We apply AI-based edge computing on the device that harnesses data for predictive analytics from the edge through the network through Enterprise Intelligence in the cloud.

The use cases start at the Edge and the Device, with AI-based apps in your phone. These use the device in the enterprise to enable intelligent customer services (think banking and insurance call centers).

In parallel and before we move further into cloud-based AI/EI solutions, tiered digital identity and cybersecurity must be in place to provide fraud detection, analysis, and prevention, facilitated by streaming, cloud, and database resources. It’s crucial that advanced cybersecurity with a tiered digital ID framework is in place before we go further into specific applications for industry segments, such as investment banking and securities, where we’re looking at Robo Advisors to augment human intelligence in a hybrid business strategy, as well as applying AI for quantitative investment and portfolio optimization.

The Tiered ID Framework

  • Strongly Provenanced Attributes: Only specific information is attributed to an individual. BENEFIT: Provides “Who You (and only who you uniquely) Are”. Application Examples are Face ID (Smile to Pay), Touch ID, and Voice ID. When this is added to the Blockchain, it creates a stronger foundation for digital identity (AI + Blockchain).
  • Transitive sources of trust: Real world “analogue” view and characteristics of an individual translated into a digital view. BENEFIT: additional layer of identity that provides “What you have”. Examples: Bank Cards, ID analogue cards.
  • Self-issued identity personae (self-sovereign identity): information only revealed of ones self required to perform a specific function. BENEFIT: Filtered information from the individual to maintain overall privacy.  Examples: subset of “Who you are, with What you Know” for shopping on-line.
  • Privacy preserving verification: Attestation provided for an individual, based on only specific information required. BENEFIT: Filtered information to protect PI. Example: Specific “What you have” information provided as attestation for your identity. Examples here can be a driver’s license or government ID as an alternative for a passport.
  • Legal trust framework: Using specific digital tools and capabilities to replace manual analogue requirements, for example, digital signatures. BENEFIT: In an individual’s personal identity “history”, a digital signature was provided and this can also be viewed as a transitive source of trust in the context of “What you Have”.

In my next article, “Tiered Digital Identity Framework and Architecture and Guiding Principles“, I will elaborate on existing authentication methods ranked by order of security and the convergence of next-gen technologies that augment these methods and more completely define a mature digital ID framework for seamless next-generation financial services.

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