U.S. Banks Roll Out Artificial Intelligence to Monitor Customers & Workers

U.S. Banks Roll Out Artificial Intelligence to Monitor Customers & Workers

A number of high-profile U.S. banks have announced plans to roll out artificial intelligence to monitor their customers, workers and identify new areas of efficiency. 

The City National Bank of Florida, JP Morgan Chase & Co and Wells Fargo have each said they have conducted trials on artificial intelligence systems in their banks. They have deployed artificial intelligence software to further understand customer preferences, as well as monitor the public and their own bank workers.

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Reports state that the “widespread deployment of such visual AI tools in the heavily regulated banking sector would be a significant step toward their becoming mainstream in corporate America.” 

Bobby Dominguez works as chief information security officer at City National bank, and says that smartphone technology has paved the way for artificial intelligence in the financial world. 

“We’re already leveraging facial recognition on mobile… why not leverage it in the real world?” 

City National says it plans to launch facial recognition trials next year that would use artificial intelligence with face-mapping technology to ensure those visiting a branch or using an ATM are who they say they are. 

Dominguez says this would replace the need for “clunky and less secure authentication measures” across its sites, and eventually help to identify visitors to a bank that are on a government watch list.

JP Morgan Chase has also issued a statement saying that the bank is “conducting a small test of video analytic technology with a handful of branches in Ohio,” while adding that artificial intelligence lessens the bank’s exposure to costly financial fraud. 

The deployment of artificial intelligence in the financial sector is nothing new, however, some tech analysts are concerned about the potential for privacy violations from software that can accurately track human movements and even identify faces. 

U.S. Banks Roll Out Artificial Intelligence to Monitor Customers & Workers

Reuters report points out that “arrests of innocent individuals following faulty facial matches, disproportionate use of the systems to monitor lower-income and non-white communities, and the loss of privacy inherent in ubiquitous surveillance.” 

The U.S. city of Portland, Oregon, for example, has banned businesses from using facial recognition “in places of public accommodation,” due to these risks, with pharmacy chain Rite Aid Corp closing its facial recognition trial in 2020.

City National’s Bobby Domingeuz, however, says that the financial sector is well-aware of the privacy risks with the roll-out of artificial intelligence systems, and is vigilantly closing security gaps. 

“We’re never going to compromise our clients’ privacy… we’re getting off to an early start on technology already used in other parts of the world and that is rapidly coming to the American banking network.”

Back in 2019, JP Morgan Chase tested its own version of artificial intelligence to sort through volumes of footage from its branches in New York and Ohio. The bank has said that analysing this footage has helped organise its staff, as well as the design of its branches to maximise space and efficiency. 

Reuters writes that “the effort aims to identify transaction times, how many people leave because of long queues and which activities are occupying workers.” 

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