Name: Brainstorm Finance 2019: Big Tech Takes Finance
Uploaded: 2020-01-03
Duration: 9 min 36 s
Description: Google Cloud's Technical Director explores all the ways tech trends are disrupting financial services.

Brainstorm Finance 2019: Big Tech Takes Finance

Finance

Google Cloud's Technical Director explores all the ways tech trends are disrupting financial services. 

good afternoon. Here we are gathered to talk about the destruction of financial service is by technology. But imagine it's 16 19 and for centuries ago, and you are a bookkeeper with a Dutch East India company in 16 0 to the Dutch East India company issued their first shares in the world's first of first stock market in Amsterdam. The Dutch East India company was the world's first Cos I peel, but as the bookkeeper, this your most advanced technology, Napier's bones. When they're arranged in the right order, they helped with multiplication and division. In 16 42 along came Blaise Pascal, a French inventor son of a tax accountant. And he invented the past Colleen the past. Colleen could add, subtract, multiply and divide. And the 19 year old blaze was the world's first fintech disruptor. And today, in 2019 Google has a quantum computer. While it's very much early days, it's still it's no longer just a theoretical concept. The pace of technology disruption is increasing exponentially and cannot be ignored. Today's technology is everywhere, things like cloud and mobile and I, O. T. And big data and artificial intelligence, by having a profound impact on our lives on on business everywhere with cloud, we now have friction free access to technology, which means that whether you are a tiny little fintech startups or you are an enormous bank multinational, you have access to the same technology resources, and that has done something profound. Innovation has been democratized. A 20 year old, it's sitting in a cafe, maybe right here in Montauk, and she has an idea for a business. She goes online. She registered to it. Maybe in Delaware, she logs into her Google Cloud account. She spends up a few of'em. She buys data for Milton. It's data providers. She starts building her machine learning algorithms using tensorflow. And very ago, she has her fintech up and running, and she hasn't even finished her cappuccino. Technology is changing the face of finance tomorrow. Finance won't be about charging fees and holding onto Capitol for trust. It will be about a world where the cost of transactions air reaching zero and trust is established to intimacy and transparency and speed. Now imagine if all trading and payments of settlements and clearing we're done in real time. Imagine this company's balance. She's your balance sheets were updated daily rather than on quarterly earnings calls. Imagine if all the risks were being calculated by machine learning models taking into account live market data. Upstate Human behavior. Weather patterns. Today we're living through an explosion of data, and it's not just weather, and it's not just transactional data. It's things like search trends and commercial transaction. They'd a satellite imagery putting car traffic and shipping location. But where is all that data going? Nowhere. Unfortunately, it's sitting in for prize databases. It's locked up and spread sheets and documents and share Dr. But that data can enable you to do enormous number of interesting things. Know things like understanding customers, better building better product. Today, the biggest opportunity for most companies is to turn their data into insights and business decisions. And the next big frontier in data and insight is machine learning and artificial intelligence. Now, today, right now, financial service is from the possible of are using machine learning to do things like improve customer experience through chat box and multi channel customer insight and customized product recommendations in trading desk and hedge funds. They're using in my ML, increasingly for doing things like portfolio construction and hiding strategies. I'm pretty soon. Machine learning will be embedded in every aspect. Off. Financial service is reducing improving risk management and increasing and a Google we applied machine learning for data centers. Now data hunters are core to our business. They make up ah, healthy portion of our operating costs and environmental impact. But the equipment, how we operate, that equipment and the environment interact with each other in ways that are hard to capture in traditional, formula based engineering. I kind of like them by national market. Our deepmind researchers designed a neural network to look at things like sensors from the server racks, windows, chillers and cooling towers, and we were able to bring down our cooling costs by 40%. Now imagine if you could bring down your transaction costs by 40% if you could. If your client on boarding was 40% faster, if you could bring down the false positives and your fraud detection algorithms like 40%. But a I is not a crystal ball. It's a very powerful tool that gives us scale in solving the world's problems in a way we haven't been able to do before. But technology itself does not create new products, does not streamline your systems, and it does not address inequalities. Now the fundamentals of a I is training algorithms using back amounts of data. But the data that we have today could be carrying the biases of our history. And today, women don't have the same access to capital as men. Today, women on average have higher mortgage rates, man. And today, around the world, about 1.3 billion women are not even included in the financial markets at all. Now imagine that data training the algorithms of tomorrow aye, aye, gives us scale, and it allows us automate processes and take humans out of the system. But we do need to keep the human and the system we need to keep them in decision making, and we need to keep them in over trite, because the potential of artificial intelligence is that it's great when it's paired with human intelligence. That's how we can use artificial intelligence to generate genuine insight and genuine intelligence. Today, 2000 and 19 financial institutions around the world are spending billions of dollars on technology now, Unfortunately, much of that spending is maintaining their legacy system. Now the good news is, we now have technology that can help change that technology like clouds and artificial intelligence and for help wants. And soon. And now imagine. It's 21 1900 years from today. Have you been able to make the right technology investments to create platforms to give your customers to give them the intimacy and the transparency and the speed they need? And have you been able to serve those that you are not leaving, sir, today? Thank you.