Artificial intelligence and machine learning algorithms capable of processing huge amounts of data are transforming the finance industry’s business strategy, says Dorel Blitz, head of fintech at the Israel branch of accounting firm KPMG.
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Mr. Blitz spoke at the FinTech 2018 conference held on Tuesday in Tel Aviv by Calcalist, Bank Leumi, and KPMG.
These technological innovations forcing businesses to become proactive in their approach to customers, Mr. Blitz said. Companies now have to move from trying to sell all clients the same product to really getting to know their customers and their particular financial needs as a whole, he added.
Mr. Blitz said that Digital banks are the real threat to traditional banking as their operational cost is three times lower than that of a regular bank and can become profitable within just two years. Large banks, such as Goldman Sachs, are forming digital banks as a way to test the waters, he added.
This digital revolution is not just about automation and process optimization, Mr. Blitz said. A company’s human representatives are still the ones that earn clients’ trust, he added.
In the first quarter of 2018, investments in fintech companies grew by 40% in Israel, reaching $340 million, according to Mr. Blitz.