Digital and Emerging Technologies 9.2.4

• What is Electronic Funds Transfer (EFT)?


  The electronic transfer of money between bank accounts without direct involvement of bank staff.
• Give a UK example of an EFT system used for salary payments.

  BACS (Bankers' Automated Clearing Services).
• Name two systems for contactless payments via EFT.


  Apple Pay and Google Pay.
• How is AI used in conversational banking?


  AI chatbots like NatWest's Cora provide 24/7 banking assistance and predictive help for payments or budgeting.
• How is AI used in anti-fraud risk management?


  AI algorithms detect unusual transaction patterns, such as HSBC's fraud detection systems.
• What is digital transformation in finance?


  The integration of digital technology into all areas of finance, fundamentally changing operations and customer experiences.
• How is AI used to predict share prices?


  Predictive models anticipate market trends, such as JP Morgan's AI-driven share analysis.
• How is cloud computing used in investment analytics?


  Platforms like Refinitiv provide cloud-based solutions for detailed investment data analytics
• What is the impact of digital transformation in finance?


  A holistic change in financial services driven by technology to meet evolving customer expectations.
• How has digital transformation impacted banking?


  Digital-only banks like Monzo and Starling Bank offer mobile-first services, transforming customer interactions.
• How has digital transformation impacted insurance?


  Companies like Aviva use AI for quick claims processing and customer support.
• How has digital transformation impacted investment?


  Robo-advisors like Nutmeg provide algorithm-driven investment portfolios.
• What is Business Process Management (BPM)?


  A systematic approach to improving workflows, making them more efficient and adaptable to change.
• What are the key benefits of BPM?


  Reduces time, errors, and costs by improving operational efficiency.
• How does BPM impact margins and customer satisfaction?


  It enables larger margins and increased customer satisfaction through straight-through processing and digital onboarding
• How does BPM help associates focus on value-adding activities?


  It gives them more time for strategic decision-making and improving customer experiences.
• How does BPM help organizations analyze their processes?


  It allows them to examine processes wholly or individually to identify the current state and opportunities for efficiency improvements.
• What does RPA stand for


  Robotic Process Automation
• What is robotic process automation (RPA) within intelligent automation (IA)?


  RPA uses digital workers to automate repeatable tasks within established business processes to reduce costs and increase speed and accuracy.
• How do RPA and BPM work together?


  RPA automates individual tasks, while BPM analyzes, measures, optimizes, and orchestrates complex processes
• What are the benefits of RPA and BPM enhancing workload management?


  They enable businesses to distribute work among digital workers based on availability, skill sets, and priority.
• How do RPA and BPM improve analytics and reporting?


  They offer valuable insights into digital workers’ performance and help measure return on investment (ROI).
• How do RPA and BPM increase flexibility and scalability?


  By deploying additional digital workers or expanding automation to new processes.
• How does HSBC use AI in its operations?


  HSBC uses AI for financial crime detection and customer insights.
• How has Lloyds Bank applied digital transformation?


  Lloyds Bank uses digital transformation and data analytics for personalized customer experiences.
• How do UK insurers use AI to enhance customer experiences?


  AI chatbots, like those used by Admiral Insurance, improve policyholder experiences
• Where can you use BPM in banking?


  • Utilize process design for loans, asset transfers, know-your-customer (KYC), hardship withdrawals, and account maintenance.
  • Increase visibility into employee performance metric scores.
  • Accelerate customer service resolution and increase customer satisfaction.
  • Reduce paperwork and errors across banking operations.
  • Improve the quality and speed of customer onboarding.
  • Improve regulatory compliance through standardized processing.
  • Boost the speed and accuracy of fraud detection.
  • Gain performance insights into products and services for better decision-making.
• What are the 4 types of analytics?

  Descriptive, Diagnostic, Predictive and Prescriptive
• What is the role of data visualisations in decision making?

  The present complex data in clear formats like charts, diagrams, maps and dashboards
• What is Horizontal Analysis?

  A method of comparing financial data across periods to identify trends
• What is ratio analysis used for?

  To evaluate financial performance using metrics like profitability and liquidity ratios
• Who are angel investors?

  Individuals providing financial backing to entrepreneurs in exchange for equity
• What is the ethos of design thinking?

  Putting customer needs at the centre of every project
• How does design thinking enhance financial services?

  By creating solutions based on customer feedback and team collaboration