How AI and ML Can Help the Banking Industry

Artificial intelligence (AI) is how banks work smarter in today’s digitally driven market. In addition to the security benefits that prevent fraud and breaches, the operational assistance features of AI speak for themselves. These include lower operating costs, managing risk, automating workflows, and personalizing the end-users banking experience. 

Automation and personalization are what suggest the viability of a product or service to consumers in this day and age. Trends for 2023 present AI as a considerable contributor to the advancement of the digital banking sector, specifically for its ability to provide valuable options/advice and protect users' information.

Banks are a perfect example to look at when considering AI's impact in the present and future. For example, the Royal Bank of Canada (RBC) uses AI for several processes, including data analytics, the construction and implementation of applications powered by AI, and features that analyze financial forecasts. 

The common thread among these features is that they contribute to delivering an enhanced experience to customers fast and efficiently. An Insider study from this year found that 75% of banks (holding over $100bn worth of assets) are strategizing with AI and ML. They also found that this adoption rate sat at around 45% for banks holding less than $100bn in assets.

So what makes Artificial Intelligence so great?

When it comes to running a business, knowing your customer as best as you possibly can is everything. The traditional importance of human intelligence and the ability to build rapport with the people you interact with day-to-day is just as relevant in the digital world. Advising is a service that has been and forever will be sought after, which has made it consistently lucrative. 

The actual functioning that makes AI beneficial to the financial industry stems from its ability to manage data. Take the example of advisors at your local bank. If you go there looking for investment advice, AI-generated algorithms will help them find shares, funds, or bonds that suit your specifications and goals. 

Now, the liability that comes with managing people's finances is among the highest importance. Last year alone, companies saw a 53% increase in cyberattacks. This presents immense levels of concern for financial institutions, wealth management firms, and especially newly established neobanks who need to generate credibility around their product to succeed. The demand for state-of-the-art security has made financial institutions gravitate towards AI and ML technology. 

Here are three of the key features backing this movement: 

• Fraud detection and compliance regulation: History has shown that the financial industry is not foreign to losing millions of investors' dollars. In the United States, efforts like the Sarbanes–Oxley Act of 2002 were meant to mitigate the impact of breaches and prevent them altogether by enforcing heavy penalties. 

For this reason, financial institutions have found it in their best interest to automate compliance using a Decision Management System (DMS). For fraud to be prevented, it needs early detection and consistent auditing. A Decision Management System makes this possible through its software and machine learning capabilities.

• Lower risks and operating costs: Having a representative provide a personal touch at your institution is great. However, mistakes slip by people, which can incur seriously negative repercussions in the banking sector. This is where and why institutions will turn to AI-powered DMS. 

When it comes to something like onboarding, for example, DMS will make the process easier and lower the risk of missing something and causing an error. In turn, this will reduce the costs of labour and allow institutions to reallocate their resources from data entry to business development.

• Better accuracy when evaluating investments: Institutions are constantly on the hunt for fruitful investment opportunities. This has made investment software a highly sought-after resource for its ability to provide suggestions that take into account how much risk the investor is willing to take.

The software can easily and accurately evaluate funding proposals from clients, which is especially useful when you consider how difficult and complex understanding industry-specific information is. Investment analysis software takes all the necessary variables into account to make this possible for the end user.

The key takeaway from this list is that AI and ML present new methods of data collection that deliver a far more efficient mode of managing funds and customer service. In turn, this will save institutions time and money while showing their clientele that they’re prepared to operate long-term. 

Process automation is a pillar of business development and service delivery in 2022. There is no doubt that this trend will only become more prevalent in the coming years. Right now, nearly 70% of companies use Business Process Automation (BPA) software. 

Three Easy-to-Grasp Changes:

1.  AI provides a platform where fraudulent/suspicious activity can be identified quickly and prevented thoroughly.

2. Financial institutions can better invest their funds and resources. In effect, customer apprehension will be mitigated which can grow the institution's consumer base.

3. The experience of banking for customers becomes far more enjoyable through the flexibility and accessibility provided by AI.

What’s Next?

Businesses are always on the lookout for new ways to improve their services. Speed, quality, and solutions that suggest longevity are the minimum standard for a financial institution in today's market. Your efforts are going to require the right software that will set you up for success and keep your customers that depend on you.

Written By Ben Brown

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ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

Changes to Expect in iOS Development for 2023

2023 is going to be the year of opportunity for iOS developers. Development teams who work frequently with iOS will see plenty of new bells and whistles in its OS functionality. In turn, these advancements will unlock new potential for creativity among programmers. Tech trends such as 5G, AR (Augmented Reality), and VR (Virtual Reality), along with the updated features from Apple, are among the major contributors to growing this margin for potential. 

Before we get into what this means for developers in 2023, let’s take a look at some of the changes revolutionizing the iOS landscape for developers:

5 of The Year's Most Exciting Technology Trends:

Artificial Intelligence and Machine Learning (AI and ML)

This technology is something we’ve commonly seen utilization of for identifying patterns/algorithms and predicting outcomes based on them. What’s unique about this technology is that it performs in this way without being directly programmed to do so.

Software that handles data whether it be storing, tracking, or predicting and personalizing has generated itself into a multi-billion dollar industry. For developers, this technology is great for quickly creating apps and improving their performance. Of course, this is in addition to its mass appeal to end-users who companies will be working hard to impress this year.

5G

In the world of mobile networks and connectivity, this is the latest and greatest technology for handling data in terms of performance and transferability. 5G (the 5th generation of mobile connectivity) is going to be the minimum standard for Apple and other companies' devices. 

Users can expect to see applications download and operate much faster, a decrease in latency, and an increased ability for connectivity among devices. This is one of the fastest technologies we’ve ever seen and it will be used to enhance other technologies such as Augmented Reality (AR) and Virtual Reality (VR).

Beacons

Retail businesses and consumers are going to love these devices. A wireless Bluetooth transmitter that sends relevant information to smartphones nearby is one of the biggest innovations in retail marketing. Imagine walking into a store and automatically receiving offers for coupons that you can opt-in to collect. This is the premise of a Beacon.

M-Commerce (Mobile Commerce)

This technology has risen in response to the demand for mobile shopping through apps rather than a website. Users want the ease of shopping on the go especially when geographical limitations are a factor. Even though their experience is digital, they want an application meant for mobile devices and don’t want to have to go through a website that was mainly meant to be accessed through a computer.

This solution gives businesses extended access to their market. The widespread adoption of M-Commerce presents plenty of opportunities for businesses and application developers to dominate a highly lucrative new market.

IoT (Internet of Things)

IoT Technology is simply adding smart technology to everyday objects such as a smart fridge or home security. These devices then send data that is stored and tracked in an app so the user (in this case the homeowner) always has access to it.

Wearables

There are over a billion connected wearable devices which include everything from smartwatches, rings, or clothing that can be linked to an app. These apps are the most important component because they enhance the experience of wearing the devices. People love being able to track their activity. 

Over 70% of Americans claimed they would wear a device that tracked their fitness if it reduced their health insurance. Of course, based on the trends we’re looking at here, we could see that being a real thing in the future.

The Tool Box For Developers

If a development team is going to reap the rewards of what’s trending in tech this year, they must be aware of the following new features:

• Fresh APIs: Apple developers have access to new capabilities through UI/UX API. These include live text, widgets displayed on lock and home screens, focus filters, MapKit, live activities, WatchOS 9, and more.

• Innovations to Xcode 14: The enhancements brought to Xcode 14 have been designed specifically for boosting productivity. All devices can access the application and it has its icon as well as improvements in editing and language.

• Xcode Cloud: This is already embedded in Xcode and it is a cloud service that works through constant delivery and integration for Apple developers to work in the cloud. Specifically, they can construct applications in the cloud as well as test and deliver them in a far more efficient way.

• WhetherKit: With this new feature, developers will be able to display weather forecasts in applications. WhetherKit can be accessed through REST APIs and native Swift. Additionally, an Apple Developer Program membership can get you access to API calls.

• Advancements in gaming: Who doesn’t love new ways to make iOS gaming experiences better? The latest graphic framework for Apple is Meta 3 which enhances performance, loads resources faster through new APIs, and gives access to a dashboard where activities can be seen. Oh, and it should also be noted that Metal FX is included for input rendering.

What’s next for iOS Development in 2023?

As a developer or a software outsourcing business, there is a lot to look forward to in 2023. Opportunities are popping up left and right, especially for both desktop and native application development. Anyone looking to deliver the highest quality product needs to make a game plan for using iOS to capitalize on those opportunities.

Written By Ben Brown

—

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

11 Ways to Reduce Software Development Costs

Too often, a company will go into a software development project with a murky idea of what needs to be accomplished by the end of it. This can slow down communication on the requirements and ultimately delay the entire process. If developers don’t know what needs to be done, you’ll wind up paying for more of their time and adding up months or even years of extra work time.

While the cost of custom software development varies from project to project, there are 11 ways to minimize the risk of additional costs.

1. Confirm there’s a need for your application

While it may be tempting to jump head-first into what feels like a revolutionary app idea, resist the urge to invest your money in a project until you’ve done some preliminary research.

As someone creating a tool, it’s imperative that you think backwards from the user end of your solution. Think thoroughly about the issues and obstacles facing the people who will ultimately be using your completed software application. Make a comprehensive list of things to consider and determine if the market truly does need your application.  

No one wants to invest thousands of dollars in something only to find out that no one really has any use for it. This is why a market study could save you (and make you) a lot of money. Completing thorough research on your target audience can not only show you that there’s a need for your project, but it could also help you identify key elements that should be included in your product. It’s always a better idea to start with the end in mind.

2. Finalize your project requirements

Now that you’ve determined there is a need for your application, you should have enough information to form a fleshed-out plan for your project. Being as clear and specific as possible on your requirements will give your software project a massive boost. With clear requirements, the right IT team can make your idea shine in less time and with fewer complications. The simpler the process becomes, the more money you save on your project. Plus, it saves developers the headache of guessing what it is you need.

If you bring a clear plan to the table, your software development team will also be more inclined to go above and beyond since you’ve removed unnecessary complications from the get-go.

3. Consider the pros and cons of where you outsource your software development team

There are a few ways to get a software application made, but the most popular way among companies is to outsource—you can read why this is the best option here.

When outsourcing, a vital factor is the location of the company you choose. Offshore outsourcing is when you hire a company abroad, often reducing the cost of hired work. However, doing so can also reduce the quality of the work you receive. The phrase, “You get what you pay for” always holds true. You may get cheaper labour, but due to time differences and communication barriers, the product may suffer as a result. These complications can also delay fixes that would otherwise be solved sooner with nearshore companies. 

Nearshore outsourcing is when you hire from neighbouring countries. This can be more expensive, but it can also increase the likelihood of success for your end-product thanks to sharing a time zone and language. A mistake that’s been made can be fixed within the day rather than having to wait in eight-hour shifts to get it resolved. 

The trick here is to determine the flexibility of your budget and time investment and find a company that can give you a high-quality project for a minimal cost.

4. Choose the right kind of contract

The first step is so critical to the success of your project that it will make a difference even in choosing a contract style with a third-party development team. How complex is your project? How many people will it take to build? How many additional changes or features are you factoring in?  

If your idea is small in scale and fairly simple, you’re safe opting for a fixed-price contract. This is when you agree to pay a certain price to get the project done. This is comfortable, since you know there won’t be any surprises when the bill comes in. A straightforward project makes this kind of contract possible and desirable.

If your idea is more complex and requires flexibility, you’ll want to choose a T&M (time-and-materials) contract. A project of larger scope will need flexibility in time and budget since it’s nearly impossible to create an accurate estimate for something with many moving parts. Making the mistake of choosing a fixed-price contract for a complex project will result in a poorly built solution that may or may not work as expected. This is a quick way to drain money, as you’ll be left with a low-quality outcome.

Having flexibility can result in a bigger expenditure than expected, but that’s why planning and organization will have profound effects when it comes to minimizing project costs.

5. Choose the right software development team

You might be surprised how a team with a good culture can impact the development of your app. A positive workplace culture is a must for any business, but this is especially true for software development work, which requires an above-average level of teamwork and synergy. There are multiple pieces going at any given time, and with a crunch for deadlines, you want a team that can rely on each other to get the work done and pass the baton on time.

A bad work culture can lead to miscommunications, mistakes, and missed deadlines. Additionally, a team like this can just be awful to work with. A combination of bad attitudes, a lack of camaraderie, and minimal discipline will produce less-than-desirable results. This is why it’s important to be thorough in your search for a development team. Here are a few key things to look out for when in the hiring process:

• There is clear leadership in place

• They have solid recommendations from reputable past clients

• Team members seem eager to hear about the project and find solutions for it

• The company has a set of values that they work by

• The company prioritizes the health and happiness of their employees

The general feel of the people you first interact with will hint at the inner workings of a company; pay close attention to how they talk to each other and about other colleagues.

6. Value clear communication above all else

From the moment you get an idea for an application to the day it launches, if you hold communication as your #1 priority, the in-between will be a positive, enriching and fulfilling process. It’s up to you and everyone involved in the process to keep a strong chain of command, and one way to ensure this is by understanding the value chain.

The value chain is a practice that details the proper way to pass a task along. Each person in the chain is responsible for their own task, but the emphasis of the value chain dictates that each person must follow up with the next person in the chain in order to confirm that they have received what they need to complete their task and that they are doing so. This should repeat from the beginning of the process all the way to the end. If there is something pending, the value chain will help ensure every critical task is completed on time, and any blockers that come up are resolved.

7. Determine the best methodology for your project

There are several methods available that software development teams use as a way of organizing their efforts and implementing changes in the plan as it is being developed. Here is a brief rundown of some of the top choices:

Waterfall

This method follows rigid steps: determine the project’s requirements and scope, analyze those requirements, design, implement, test, deploy and finally, maintain. 

Feature-Driven Development (FDD)

Similar to Waterfall, FDD is viewed as an older methodology, a sort of precursor to modern Lean/Agile implementations. FDD still focuses on the goal of delivering working software frequently and is an especially client-centric approach, making it a good fit for smaller development teams. 

Agile

Agile is a process by which a team can manage a project by breaking it up into several stages. Constant collaboration with stakeholders and continuous improvement at every stage is the focus of Agile. This works by breaking projects down into little bits of user functionality called user stories, prioritizing them, and then continuously delivering them in short two-week cycles called iterations.

Scrum

Scrum emphasizes decision-making from real-world results rather than speculation. Time is divided into short work cadences, known as sprints, typically one week or two weeks long. At the end of each sprint, stakeholders and team members meet to see a demonstrated potentially shippable product increment and plan its next steps.

Find more info on software methodologies here.

8. Use a pre-built software foundation platform instead of starting from scratch

A solution to limited time and budget is to use a foundation platform that already has basic features built in. Depending on the nature of your idea, a solution like the ISU Core could save you up to 70% of the implementation cost of your project.  

A large percentage of software projects share the same requirements. Custom software developers have to rebuild these requirements on every new project, leading to a loss of time and money that can be avoided. With the main structure already set up, you will have the first version of your application in record time. This works for a wide range of projects, from simple solutions all the way to Enterprise applications. You can rest assured your needs are covered no matter the scale of your project. The ISU Core is used to create modern cloud, mobile and SaaS solutions/products, so consider using this if you’re looking to get started on a project of similar scope.

9. Invest in learning about software development 

Having a baseline understanding of how software development works can help you get the most out of your project. One vital concept to keep in mind is another methodology called DevOps.

This term comes from the combination of development and IT operations. DevOps is a set of practices and tools that aim to reduce the length of the software development life cycle, streamlining your project while keeping high quality and high output volume. This method complements Agile, as it emphasizes rigorous testing and re-assessment of the project as it is being developed. This certifies that the end product fulfills the requirements that were set out from the beginning.

When you outsource a project, knowing these strategies can help you communicate about them with your chosen team and ensure that best practices are being implemented throughout your project lifecycle.

10. Don’t be afraid of launching a minimum viable product (MVP)

Launching your product with only the essential features can allow you to receive crucial feedback on your project. There are no better people to receive feedback from than your target audience.

Doing this can give you a trail of evidence that will lead to your project’s success, as you’ll have access to data that will give you the positive and negative aspects of your application so far. This can help you pivot your development toward creating the tool that your audience wants. You can also determine more accurately if your project is worth pursuing. If no fish bite the hook, reeling it back in can save you the extra time and money that comes with keeping it in the water, so to speak.

11. Don’t get too caught up in design

While it may be one of the more exciting aspects of building an application, focusing too much on the look of the app can be a detriment to the usability of it. Keeping a balance between beauty and usefulness is an art, and both are important for your end user. Your app must be modern and inviting to your user, while also being intuitive and logical. The best way to strike that balance is to work with a team of experts with experience in creating stunning designs with top-notch useability.

In The end

Each step when done together can save you thousands in the long run. It’s entirely possible to avoid the potential turbulence every software project could face. Remember, clear requirements, thorough communication, brushing up on software knowledge and methodologies, and knowing the best outsourcing practices for your project can all contribute to a smooth and successful launch. Give your idea the expertise it deserves by hiring experienced professionals.

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs to produce the best ROI. Find out why startups, all the way to Fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

Written by Natalie Mansilla