Investment banks could soon be tapping into a new breed of talent: Artificial Intelligence (AI). Learn how AI might be crucial for competitive standing. Learn more: https://www.accenture.com/us-en/insight-investment-bank-challenge-03-automation-intelligence?c=fs_cmfy17sldshr_10000003&n=smc_0517

1. TOP 10
CHALLENGES

2. CHALLENGE 03
TURNING AUTOMATION
INTO INTELLIGENCE
TOP 10 CHALLENGES FOR
INVESTMENT BANKS 2017
#IBTOP10
2CHALLENGE 03 - Top 10 Challenges for Investment Banks

3. 3
TURNING AUTOMATION
INTO INTELLIGENCE
CHALLENGE 03 - Top 10 Challenges for Investment Banks
01
02
03
04
05
06
07
08
09
10 GETTING FIT
AUTOMATION
LOCATION
STRATEGY
DIGITAL
TALENT
CLIENT EXPERIENCE
JOURNEY
TO CLOUD
INNOVATION
RESEARCH
FUNCTION
BLOCKCHAIN
PRUNING FOR GROWTH

4. INVESTMENT BANKS
UNDERSTAND THE VALUE
OF HUMAN CAPITAL.
4
For years, they’ve competed for the
sharpest minds from the very best schools.
But what happens when the line between
HUMAN CAPITAL and ARTIFICIAL
INTELLIGENCE begins to blur?
CHALLENGE 03 - Top 10 Challenges for Investment Banks

5. CHALLENGE 03 - Top 10 Challenges for Investment Banks
TURNING AUTOMATION
INTO INTELLIGENCE
THE
CHALLENGES
THE
DEMANDS
THE
SOLUTIONS
5
Rising costs
Headcount
reductions in
high-cost functions
Automation
Increased
regulatory scrutiny
Increased
customer centricity AI
+ + +

6. TURNING AUTOMATION
INTO INTELLIGENCE
6
Automation vs. Artificial intelligence (AI)
AI
+ Standardized processes
+ Redundancy reduction /
elimination
+ Some cost savings
‒ Limited benefits
AUTOMATION
+ Data insights
+ Learning capabilities
+ Emotional intelligence
+ Significant cost savings
‒ Significant investment
CHALLENGE 03 - Top 10 Challenges for Investment Banks

7. TURNING AUTOMATION
INTO INTELLIGENCE
7
What is AI and what can it do?
AI USES TOOLS LIKE:
Cognitive computing
TO POWER:
Natural language
processing
Digital recognition
Intelligent assistants
Virtual workers
CHALLENGE 03 - Top 10 Challenges for Investment Banks

8. TURNING AUTOMATION
INTO INTELLIGENCE
8
Intelligent assistants and virtual
workers with deep learning capabilities
have not only surpassed humans on
some intelligent quotient tests, but
their software is starting to close the
gap on emotional intelligence and
can be increasingly indistinguishable
from their human counterparts when
communicating remotely.
Source: Machine Beats Humans in IQ Test for the First Time Ever, Tech Times, June 13, 2015
CHALLENGE 03 - Top 10 Challenges for Investment Banks

9. CHALLENGE 03 - Top 10 Challenges for Investment Banks
TURNING AUTOMATION
INTO INTELLIGENCE
9
If investment keeps growing…
2014
$272 Million
Worldwide cognitive systems
spending by the investment and
securities sector in 2014
43%
Compound annual growth
rate through 2019
CAGR
43.0%
2019
$272M
$1,626.60M
Source: IDC: Worldwide Semiannual Cognitive Systems Spending by Vertical Market 2016–2019 Forecast, May 2016

10. CHALLENGE 03 - Top 10 Challenges for Investment Banks
INTELLIGENT AUTOMATION
CAPITAL CONSTANTLY
IMPROVES, RATHER THAN
DEGRADES, IN VALUE.
10
The key advantage to intelligent automation
capital is that it is self-learning.

11. CHALLENGE 03 - Top 10 Challenges for Investment Banks
TURNING AUTOMATION
INTO INTELLIGENCE
11
A natural progression
RATIONALIZE
BUSINESS LINES
ADOPT A CLIENT-
CENTRIC APPROACH
FOCUS LESS ON
PRODUCTS & MORE
ON ADVICE
EXPAND SELF-
SERVICE & DIGITAL
OPTIONS

12. CHALLENGE 03 - Top 10 Challenges for Investment Banks
TURNING AUTOMATION
INTO INTELLIGENCE
12
Three steps to grow intelligently with AI
01
Embrace intelligent machines as…
…making them increasingly valuable
members of the workforce.
OPERATIONS
ASSISTANTS
CLIENT
LIAISONS
ADVISORS

13. CHALLENGE 03 - Top 10 Challenges for Investment Banks
TURNING AUTOMATION
INTO INTELLIGENCE
13
Three steps to grow intelligently with AI
02
Automate back-office and
commodity functions
Such as reconciliation, and use robotics
to complement or displace already low-
cost utility labor arbitrage models.

14. CHALLENGE 03 - Top 10 Challenges for Investment Banks
TURNING AUTOMATION
INTO INTELLIGENCE
14
Three steps to grow intelligently with AI
03
Apply artificial intelligence to front-
office client interactions…
…freeing people to perform higher
value tasks.
CLIENT
ONBOARDING
RISK APPETITE
ASSESSMENTS
PORTFOLIO
ALLOCATION &
REBALANCING
SALES &
TRADING

15. TURNING AUTOMATION
INTO INTELLIGENCE
15
Companies that adjust their organization and culture to
incorporate intelligent automation as co-workers rather
than people replacements could reap important rewards:
More reliable
performance and
insights
Extension of
services to previously
unprofitable markets
Cost
reductions
CHALLENGE 03 - Top 10 Challenges for Investment Banks

16. TAKE THE
NEXT STEP
16
www.accenture.com/10challenges
CHALLENGE 03 - Top 10 Challenges for Investment Banks