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As AI continues to evolve and grow into the mainstream, it has been touted as ‘dangerous’ for a company to avoid the tech in the modern age. 

During the opening day of Money20/20, AI’s relationship with financial institutions and its impact on the payment journey was discussed as Gina Clarke, Europe Content Director of Money20/20, quizzed Marnix van Stiphout, Chief Technology Officer of AI at ING and Joanne Hannaford CIO and CPO of the Corporate Bank at Deutsche Bank.

According to van Stiphout, providing an increasingly frictionless experience is at the heart of what AI is bringing to the equation for banks. 

“We are going to be focusing on what our customers need and how we apply it at ING, frictionless banking is what it’s all about.”

Nonetheless, as AI evolves so does the need for fraud and financial institutions to be flexible with the approach they take to combating fraudsters.

This warning comes at a time when deepfakes are being utilised at an increasing frequency from fraudsters looking to gain an upper hand on financial institutions. 

Hannaford pointed out that unconstrained AI simply isn’t an option as “you can’t have AI in banks that don’t have humans in the loop, the regulator’s will not allow that”.

Although the event is in Amsterdam, moderator Clarke points out a question sent in by a member of the audience, which asks how European banks feel about the risk taken by US counterparts.

It prompted van Stiphout to respond by underlining that it is vital “that we need to be at the forefront of AI. We don’t need to take a backseat”.

Offering some American experience, Hannaford explains: “I spent 25 years in a large American bank and I can see technology is a core competency. They see technology as an intrinsic part of the way that you can actually access businesses.”

She added that it is her belief that companies not having AI as a core discussion is simply a dangerous position for them.