TD Bank Group will open a new office in New York City for its artificial intelligence research and development center, Layer 6, in the current year.
With the new office, Layer 6, which currently operates from its head office in Toronto, will grow to more closely support the bank’s US operations and gain access to an expanded talent pool. The relevant information is contained in a press release published by TD Bank on Tuesday, April 22.
The president and chief executive officer of the financial institution, Leo Salom, stated that the expansion of Layer 6 in the United States underscores the lender’s commitment to deepening its presence in New York City and investing in the future of innovation. He also noted that the new office establishes a strong foundation for advancing TD Bank’s generative artificial intelligence capabilities, bringing critical expertise and delivering in-house.
After the opening, the new office will house 20 data scientists, applied machine learning scientists, GenAI implementation specialists, and others. This information is contained in the press release.
The deployment by the financial institution of artificial intelligence technology is aimed at both personalization for clients and streamlined process execution within the business. The corresponding statement is contained in the press release.
These efforts are driven by Layer 6, which the bank acquired in 2018.
Luke Gee, chief analytics and AI officer at TD Bank, stated that the expansion of Layer 6 is the next major step in the financial institution’s efforts in the area of banking innovation. In the relevant context, it was also noted that with recent advances in sectors such as generative artificial intelligence, the lender continues to leverage the potential of this game-changing technology through the work of colleagues across the bank. Moreover, Luke Gee stated that Layer 6 continually drives thought leadership and breaks new ground.
According to media reports, the practice of implementing innovations based on artificial intelligence has been rapidly scaling up in the banking sector recently. In a certain sense, this is a natural stage in the digitalization of the mentioned sector from the point of view of the current stage of global technological progress, focused on the development of machine intelligence. The integration of artificial intelligence into the structure of financial institutions’ activity is likely to become more intensive. AI has many advantages for the banking sector. Chatbots and virtual assistants provide round-the-clock interaction with clients. Also, these digital functional systems quickly generate responses to user requests. Moreover, the use of artificial intelligence in the banking sector provides for the possibility of leveraging AI-based algorithms to analyze customer behavior and form subsequent personalized financial recommendations. Machine intelligence can also process huge amounts of data in real time, including as part of an analytical approach. This feature of digital intelligence has benefits for many industries, and the banking sector in the relevant context is no exception. Artificial intelligence can also detect fraudulent activity. This is especially important for the banking sector, as the development of advanced technologies has led to an increase in cybercrime damage in terms of financial performance. Artificial intelligence can automatically block suspicious transactions and various types of abnormal activity. AI can also warn both bank employees and customers of financial institutions about security-related threats. Moreover, it is worth noting that machine learning algorithms assess credit risks faster than traditional methods of carrying out relevant activities. Furthermore, in this case, a higher level of accuracy is provided. The use of machine learning algorithms by banks for clients in a practical sense means that they will receive decisions for loan applications within a few minutes. Artificial intelligence can also automate routine tasks, such as, for example, accounting. Moreover, the use of AI can reduce banks’ staff costs and decrease the time required to complete certain work. As part of the implementation of appropriate practices, financial institutions will be able to focus at a higher level on the tasks that are most important from the point of view of strategic business prospects. Returning to the high-quality ability of artificial intelligence to process huge amounts of data, it is worth noting that banks can benefit from this by accurately analyzing market tendencies, allowing them to make informed decisions. This is useful for both risk management and investment activities. Artificial intelligence can also track changes in legislation and automate compliance checks, which for banks means reducing the risk of facing various penalties from regulators.
The results of a special industry study indicate that currently in the United States, more than 70% of financial institutions actively use machine intelligence in their activities. It is known that 64% of the relevant organizations leverage artificial intelligence for fraud detection. Also, 42% of financial institutions use AI to automate customer onboarding.
When TD Bank acquired Layer 6 in 2018, the lender described the Toronto-based company operating in the artificial intelligence industry as a global thought leader and pioneer in the delivery of responsive, personalized, and insight-driven experiences for the financial services sector.
Many experts say that AI can have a revolutionary impact on the world. If this assumption is implemented on a full scale, the banking sector will be one of the spaces that exemplify the significant capabilities of artificial intelligence. At the current stage of AI development for financial institutions, the main positive consequences of using advanced technology are related to improving the efficiency and accuracy of existing functional processes. It is possible that over time, artificial intelligence will become a source of deep and fundamental transformation of the banking sector. It can also be assumed that this process will imply a degree of industry revolutionization that is currently difficult to even imagine. At the same time, the corresponding assumption is only a probability and nothing more.
As we have reported earlier, TD Bank Joins Mastercard Priceless Planet Coalition to Boost Reforestation Efforts in Canada.
