Transforming Financial Services with Data-Driven Insights

May 30, 2022

Banks and financial services institutions face increased competition not only from peer organizations within the industry, but also now from FinTech startups, Neobanks, and others. The way to compete is to deliver highly personalized services and innovative offerings. And increasingly, the way to do that is using AI/ML to derive data-driven insights upon which those services and offerings can be based.

The many ways to leverage data and AI

Financial services institutions increasingly have sought to use new data sources to expand their traditional risk analysis and make more personalized offerings to a larger customer base. Many have gone beyond traditional methods (e.g., using FICO scores, credit history, salary, and more) and developed new risk models and highly individualized creditworthiness ratings based on the analysis of additional data sources. For example, some major credit reporting services now let customers link their bank accounts. The service provider then incorporates data that was not formally used in the past, like regular rent and utility payments, to modify the customer’s credit score. Financial services institutions can then better assess risks, increase credit limits, and optimize annual percentage rates for each customer.

But that is just the tip of the iceberg. For years, most financial institutions traditionally built applications that only worked within their own ecosystems. Finance tools that could pull a consumer’s data from multiple institutions were rare, and their methods for collecting data were usually technically complicated. The global open banking initiative seeks to change those conditions.

The potential for industry disruption is enormous. Open banking enables the exposure of customer financial data via APIs, extending an organization’s reach far beyond traditional financial services institutions. The open banking market is expected to reach $43.15 billion by 2026, growing at a compound annual growth rate (CAGR) of 24.4% through 2026, according to Allied Market Research.

Open banking presents a way for financial data providers to easily share their data. This information for AI/ML analysis will allow businesses to create new products and personalized offers for consumers.

The data-driven insights from this data sharing offer many opportunities for financial services organizations. But it also opens the door to new competition. For example, open banking allows non-bank entities to provide financial services directly to customers eliminating the financial services middleman. Already, Walgreens and Walmart have announced new banking initiatives. Traditional banks could greatly suffer if retailers embrace such services as both retailers have very high volumes of foot traffic every week.

Where is AI/ML used?

Given the availability of much more customer data, financial institutions are looking for AI/ML to help get deeper insights and actionable information. AI technologies, including machine learning, can help improve loan underwriting and reduce financial risk. From a different risk perspective, AI is often used to fight fraud and aid anti-money laundering efforts.

Additionally, AI can be used in both front and middle office applications. Some uses include enabling frictionless, 24/7 customer interactions via intelligent chatbots, personalizing the customer experience using recommendation systems and utilizing robotic process automation to reduce human error in day-to-day operations.

What’s needed?

The wide variety of AI applications in financial services institutions all need huge amounts of compute resources to run AI workloads and train ML models efficiently and cost-effectively. This is an area where a cloud-based, GPU-accelerated approach can help.

Workloads can greatly benefit from elastic and scalable cloud-based, GPU-accelerated resources running optimized AI/ML algorithms, routines, and libraries. Marrying the right cloud and GPU technologies can provide the requisite scalability, faster and more efficient runtimes, and increased model accuracy.

As such, organizations greatly benefit when teaming with partners that offer the right technology and deep industry-specific AI expertise. Microsoft and NVIDIA have been working together for years in this AI/ML arena.

One of the biggest obstacles to the broader democratization of AI is concerns regarding sharing and use of personal data. For example, banks are often unable to collaborate on tasks such as fraud and money laundering detection due to concerns regarding the security and privacy of transaction data. One area where Microsoft and NVIDIA have recently focused on addressing some of the specific issues in financial services is offering Azure confidential computing with NVIDIA GPUs for trustworthy AI.

NVIDIA and Microsoft recently announced that they are combining the power of GPU-accelerated computing with confidential computing for state-of-the-art AI workloads. With support for Ampere Protected Memory (APM) in NVIDIA A100 Tensor Core GPUs and hardware-protected VMs, financial services organizations will be able to use sensitive datasets to train and deploy more accurate models with state-of-the-art performance and an added layer of security that their data remain protected.

This follows years of collaboration where Microsoft and NVIDIA have delivered tightly integrated and optimized technologies. For example, libraries perform certain tasks to efficiently use GPUs. Installing and configuring these libraries takes time and effort. Azure takes care of pre-installing these libraries and setting up all the complex networking between compute nodes through integration with GPU pools. Additionally, by collaborating, NVIDIA and Azure have developed optimal configurations for GPU-accelerated AI workloads. That saves companies time and operational costs.

And most importantly, the compute resources made available by Microsoft and NVIDIA give financial institutions a way to become data-driven, transforming their processes and operations based on the derived insights from their analysis. This, in turn, helps these companies monitor financial performance, identify areas for improvement, uncover new opportunities, and better serve their customers.

Return to Solution Channel Homepage
Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

2022 Road Trip: NASA Ames Takes Off

November 25, 2022

I left Dallas very early Friday morning after the conclusion of SC22. I had a race with the devil to get from Dallas to Mountain View, Calif., by Sunday. According to Google Maps, this 1,957 mile jaunt would be the longe Read more…

2022 Road Trip: Sandia Brain Trust Sounds Off

November 24, 2022

As the 2022 Great American Supercomputing Road Trip carries on, it’s Sandia’s turn. It was a bright sunny day when I rolled into Albuquerque after a high-speed run from Los Alamos National Laboratory. My interview su Read more…

2022 HPC Road Trip: Los Alamos

November 23, 2022

With SC22 in the rearview mirror, it’s time to get back to the 2022 Great American Supercomputing Road Trip. To refresh everyone’s memory, I jumped in the car on November 3rd and headed towards SC22 in Dallas, stoppi Read more…

Chipmakers Looking at New Architecture to Drive Computing Ahead

November 23, 2022

The ability to scale current computing designs is reaching a breaking point, and chipmakers such as Intel, Qualcomm and AMD are putting their brains together on an alternate architecture to push computing forward. The chipmakers are coalescing around the new concept of sparse computing, which involves bringing computing to data... Read more…

QuEra’s Quest: Build a Flexible Neutral Atom-based Quantum Computer

November 23, 2022

Last month, QuEra Computing began providing access to its 256-qubit, neutral atom-based quantum system, Aquila, from Amazon Braket. Founded in 2018, and built on technology developed at Harvard and MIT, QuEra, is one of Read more…

AWS Solution Channel

Shutterstock 1648511269

Avoid overspending with AWS Batch using a serverless cost guardian monitoring architecture

Pay-as-you-go resources are a compelling but daunting concept for budget conscious research customers. Uncertainty of cloud costs is a barrier-to-entry for most, and having near real-time cost visibility is critical. Read more…

 

shutterstock_1431394361

AI and the need for purpose-built cloud infrastructure

Modern AI solutions augment human understanding, preferences, intent, and even spoken language. AI improves our knowledge and understanding by delivering faster, more informed insights that fuel transformation beyond anything previously imagined. Read more…

SC22’s ‘HPC Accelerates’ Plenary Stresses Need for Collaboration

November 21, 2022

Every year, SC has a theme. For SC22 – held last week in Dallas – it was “HPC Accelerates”: a theme that conference chair Candace Culhane said reflected “how supercomputing is continuously changing the world by Read more…

Chipmakers Looking at New Architecture to Drive Computing Ahead

November 23, 2022

The ability to scale current computing designs is reaching a breaking point, and chipmakers such as Intel, Qualcomm and AMD are putting their brains together on an alternate architecture to push computing forward. The chipmakers are coalescing around the new concept of sparse computing, which involves bringing computing to data... Read more…

QuEra’s Quest: Build a Flexible Neutral Atom-based Quantum Computer

November 23, 2022

Last month, QuEra Computing began providing access to its 256-qubit, neutral atom-based quantum system, Aquila, from Amazon Braket. Founded in 2018, and built o Read more…

SC22’s ‘HPC Accelerates’ Plenary Stresses Need for Collaboration

November 21, 2022

Every year, SC has a theme. For SC22 – held last week in Dallas – it was “HPC Accelerates”: a theme that conference chair Candace Culhane said reflected Read more…

Quantum – Are We There (or Close) Yet? No, Says the Panel

November 19, 2022

For all of its politeness, a fascinating panel on the last day of SC22 – Quantum Computing: A Future for HPC Acceleration? – mostly served to illustrate the Read more…

RISC-V Is Far from Being an Alternative to x86 and Arm in HPC

November 18, 2022

One of the original RISC-V designers this week boldly predicted that the open architecture will surpass rival chip architectures in performance. "The prediction is two or three years we'll be surpassing your architectures and available performance with... Read more…

Gordon Bell Special Prize Goes to LLM-Based Covid Variant Prediction

November 17, 2022

For three years running, ACM has awarded not only its long-standing Gordon Bell Prize (read more about this year’s winner here!) but also its Gordon Bell Spec Read more…

2022 Gordon Bell Prize Goes to Plasma Accelerator Research

November 17, 2022

At the awards ceremony at SC22 in Dallas today, ACM awarded the 2022 ACM Gordon Bell Prize to a team of researchers who used four major supercomputers – inclu Read more…

Gordon Bell Nominee Used LLMs, HPC, Cerebras CS-2 to Predict Covid Variants

November 17, 2022

Large language models (LLMs) have taken the tech world by storm over the past couple of years, dominating headlines with their ability to generate convincing hu Read more…

Nvidia Shuts Out RISC-V Software Support for GPUs 

September 23, 2022

Nvidia is not interested in bringing software support to its GPUs for the RISC-V architecture despite being an early adopter of the open-source technology in its GPU controllers. Nvidia has no plans to add RISC-V support for CUDA, which is the proprietary GPU software platform, a company representative... Read more…

RISC-V Is Far from Being an Alternative to x86 and Arm in HPC

November 18, 2022

One of the original RISC-V designers this week boldly predicted that the open architecture will surpass rival chip architectures in performance. "The prediction is two or three years we'll be surpassing your architectures and available performance with... Read more…

AWS Takes the Short and Long View of Quantum Computing

August 30, 2022

It is perhaps not surprising that the big cloud providers – a poor term really – have jumped into quantum computing. Amazon, Microsoft Azure, Google, and th Read more…

Chinese Startup Biren Details BR100 GPU

August 22, 2022

Amid the high-performance GPU turf tussle between AMD and Nvidia (and soon, Intel), a new, China-based player is emerging: Biren Technology, founded in 2019 and headquartered in Shanghai. At Hot Chips 34, Biren co-founder and president Lingjie Xu and Biren CTO Mike Hong took the (virtual) stage to detail the company’s inaugural product: the Biren BR100 general-purpose GPU (GPGPU). “It is my honor to present... Read more…

Tesla Bulks Up Its GPU-Powered AI Super – Is Dojo Next?

August 16, 2022

Tesla has revealed that its biggest in-house AI supercomputer – which we wrote about last year – now has a total of 7,360 A100 GPUs, a nearly 28 percent uplift from its previous total of 5,760 GPUs. That’s enough GPU oomph for a top seven spot on the Top500, although the tech company best known for its electric vehicles has not publicly benchmarked the system. If it had, it would... Read more…

AMD Thrives in Servers amid Intel Restructuring, Layoffs

November 12, 2022

Chipmakers regularly indulge in a game of brinkmanship, with an example being Intel and AMD trying to upstage one another with server chip launches this week. But each of those companies are in different positions, with AMD playing its traditional role of a scrappy underdog trying to unseat the behemoth Intel... Read more…

JPMorgan Chase Bets Big on Quantum Computing

October 12, 2022

Most talk about quantum computing today, at least in HPC circles, focuses on advancing technology and the hurdles that remain. There are plenty of the latter. F Read more…

UCIe Consortium Incorporates, Nvidia and Alibaba Round Out Board

August 2, 2022

The Universal Chiplet Interconnect Express (UCIe) consortium is moving ahead with its effort to standardize a universal interconnect at the package level. The c Read more…

Leading Solution Providers

Contributors

Using Exascale Supercomputers to Make Clean Fusion Energy Possible

September 2, 2022

Fusion, the nuclear reaction that powers the Sun and the stars, has incredible potential as a source of safe, carbon-free and essentially limitless energy. But Read more…

Nvidia, Qualcomm Shine in MLPerf Inference; Intel’s Sapphire Rapids Makes an Appearance.

September 8, 2022

The steady maturation of MLCommons/MLPerf as an AI benchmarking tool was apparent in today’s release of MLPerf v2.1 Inference results. Twenty-one organization Read more…

Not Just Cash for Chips – The New Chips and Science Act Boosts NSF, DOE, NIST

August 3, 2022

After two-plus years of contentious debate, several different names, and final passage by the House (243-187) and Senate (64-33) last week, the Chips and Science Act will soon become law. Besides the $54.2 billion provided to boost US-based chip manufacturing, the act reshapes US science policy in meaningful ways. NSF’s proposed budget... Read more…

SC22 Unveils ACM Gordon Bell Prize Finalists

August 12, 2022

Courtesy of the schedule for the SC22 conference, we now have our first glimpse at the finalists for this year’s coveted Gordon Bell Prize. The Gordon Bell Pr Read more…

Intel Is Opening up Its Chip Factories to Academia

October 6, 2022

Intel is opening up its fabs for academic institutions so researchers can get their hands on physical versions of its chips, with the end goal of boosting semic Read more…

AMD Previews 400 Gig Adaptive SmartNIC SOC at Hot Chips

August 24, 2022

Fresh from finalizing its acquisitions of FPGA provider Xilinx (Feb. 2022) and DPU provider Pensando (May 2022) ), AMD previewed what it calls a 400 Gig Adaptive smartNIC SOC yesterday at Hot Chips. It is another contender in the increasingly crowded and blurry smartNIC/DPU space where distinguishing between the two isn’t always easy. The motivation for these device types... Read more…

AMD’s Genoa CPUs Offer Up to 96 5nm Cores Across 12 Chiplets

November 10, 2022

AMD’s fourth-generation Epyc processor line has arrived, starting with the “general-purpose” architecture, called “Genoa,” the successor to third-gen Eypc Milan, which debuted in March of last year. At a launch event held today in San Francisco, AMD announced the general availability of the latest Epyc CPUs with up to 96 TSMC 5nm Zen 4 cores... Read more…

Google Program to Free Chips Boosts University Semiconductor Design

August 11, 2022

A Google-led program to design and manufacture chips for free is becoming popular among researchers and computer enthusiasts. The search giant's open silicon program is providing the tools for anyone to design chips, which then get manufactured. Google foots the entire bill, from a chip's conception to delivery of the final product in a user's hand. Google's... Read more…

  • arrow
  • Click Here for More Headlines
  • arrow
HPCwire