Artificial intelligence advances, blockchain benefits and cloud computing spreads

technologies will permanently change the financial institutions and markets

What is Artificial Intelligence (AI)?

According to Britannica, Artificial Intelligence is the ability of a human-controlled robot or automated

device to execute functions typically associated with intelligent beings. The concept is also applied to the

project of designing structures blessed with human characteristic analytical mechanisms such as the

capacity to think, to explore meaning, to generalize or learn from previous experience. At first computers

could only do mathematics and had very low memory capacity till the digital computer was introduced

to the world. After evolution throughout this century these digital computers can now think like humans

or can complete very complex task. Though they will never be able to work or think critically like a

human still they are performing very well in certain areas and some of them have matched the

performance level of human experts.

What is Blockchain?

Blockchain is the distributed currency infrastructure it underpins it. The software allows the sharing of

digital content, but not the copying. That means that only one owner can have any single piece of data.

Blockchain technology allows global shared ledgers to keep unchangeable records in a safe and

encrypted manner to guarantee transactions will never be modified. Bitcoin is a real example of

blockchain. Blockchain uses virtual currency which is known as crypto-currency. Blockchain distribute

storage without middle man. It does not require a bank or third party to assure or verify that the

transaction in executed that’s why these parties can not cut or take out money as service charge.

What is Cloud Computing?

The use of hardware and software to provide a service over a network is cloud computing. According to

Investopedia, Cloud computing is the distribution of multiple resources over the Internet. These services

include systems and technologies such as data storage, servers, databases, networking, and software.

Instead of storing files on a private hard disk or local storage unit, cloud-based storage enables them to be

transferred on a central archive. Electronics devices has access to the data and the software programs to

run it as long as an electronic device has access to the internet.

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How do they work?

Artificial intelligence uses intelligent machines to emulate the human intellect. To construct something

called a propensity model, the program needs to learn how to respond to such actions, so it uses

algorithms and historical data. Then propensity models will start predictions to do the task. Artificial

intelligence may do a lot more than that, but these are typical marketing applications and features. And

while the robots may appear able to rise and take over, humans are still required to do most of the job.

It was defined this way by William Mougayar, author of The Business Blockchain, if two companies that

need to change their own account balance because there is an order for money to be moved from one

entity to another. They need to spend a huge amount of time and money planning, synchronizing,

texting, and checking to make sure any event works just as it should. The money being exchanged is

usually retained by the originator so the receiver may prove that it was obtained. Since there is only a

common set of documents, not two separate files, a common list with transaction details that all sides

have access to will simplify the communication and confirmation efforts.

To make things easier we can divide the cloud system in two sections. One is the front end and another

one is the back end. They are link to each other through the Internet. The front end is the User or Client

side of the computer. The back end is the System's 'the cloud' part. The front end consists of the data

network supported by the customer and application is also necessary for cloud server connectivity. There

are numerous computers, servers and data management devices on the back end of the information

processing infrastructure that make up the cloud. A cloud computing system can include any programs

whatever they want and there will have dedicated server for each application.

How they affect financial institutions and markets?

In past, financial institutions and markets had to do their work manually but now most of the works are

being done by the technologies. These technologies have affected the financial institutions and markets a

lot. In financial institutions there are lot of works which previously had to be done by the employees but

in modern world those works are now overtaken by artificial intelligence. Artificial intelligence releases

the pressure of workload of the employees. Cloud computing is also evolving the structure of the

financial institutions and markets. Cloud computing helps to store data and it is always available

whenever it is needed. For example, in previous days, if an employee had to store data, they had to write

it down on papers and store it in the office stores where thousand of important files were being held. If

they had to go through that paper it was very difficult to find it but as the technology discovered this

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huge process is just vanished because in cloud computing we can easily store and find important files.

Blockchain is a payment technology. At first, it was assumed people will not accept this technology but

now most people use this technology to transfer money because of its security and transparency. If one

party doesn’t feel safe doing business with other party, they can use blockchain methods because every

participant in a blockchain network has real time visibility into every transaction. So, it is very much clear

that these technologies have affected a lot and in recent future these technologies will be the main driver

of financial institutions and markets.

Identify the impact of these 3 technologies in financial sectors:

Financial sectors are operating in a manner how technology is revolutionizing. new market strategies

such as digital currencies, mobile banking, online finance and emerging payment platforms are

expanding technical developments. Financial sectors adopted new technologies to compete with the

evolving world. Technological advances are constantly allowing customers to handle their own finances

and companies need to explain how they add value. Artificial Intelligence allows companies to unlock the

value hidden within their business sectors. Financial companies will now accomplish bigger targets with

Artificial Intelligence to offer better value to consumers. Developing efficient payment systems poses a

big problem for organizations. For payments, clearance, settlement and other numerous financial

functions blockchain is working as a potential alternative. Blockchain is picking up its pace in the world.

Though blockchain poses threats for many financial sectors because blockchain works in a way that there

will be no middleman between the customer and seller. There are many financial institutions that works

as a middleman so blockchain may eliminate these middleman financial sectors. A revolution is on its

way as the internet is expanding and cloud service users is also increasing because of its affordability.

Organizations in the financial sectors should leverage the cloud's ability to make operations more efficient

and collaborative. As cloud technology is evolving its role in the financial sector is also evolving. Now the

cloud is known as a business-as-normal operation and it is very essential for a business strategy to have a

cloud first. Technological innovation and adaptation are the core attempts to serve customers in a better

way. Adopting these advanced financial technologies is vital to the success of financial services

organizations.

some successful examples of these 3 technologies in financial sectors:

In Builtin website it is described as that ZestFinance is the developer of the Zest Automated Machine

Learning platform, an AI-powered underwriting system that lets enterprises evaluate borrowers with

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little or no experience or background. The platform uses thousands of data points which offers clarity not

available with other underwriting schemes, which allows lenders to properly evaluate communities

typically considered "at risk." ZAML is an end-to - end framework, which organizations can easily adopt

and scale up.

Blockchain plays a significant part in global finance – exchange related financial practices and foreign

trade. Particularly in today's innovative technological environment, many commercial finance operations

also require tons of documents, such as lading bills, invoices, credit notes, etc. Many order management

systems allow all this paperwork to be carried out electronically but it takes a lot of time. By getting rid of

time-consuming paperwork and regulation, blockchain-based trade finance will streamline the whole

trading process.

Nobody doubts that security is the primary concern when accepting any new technology, particularly

cloud-based offers. Cloud computing has an incredibly solid security infrastructure, which routinely

undergoes powerful security tests. Due to millions of card transactions, deposits, and transfers, the

financial sector produces massive amount of data at any given day. Cloud computing offers infinite

capacity to ensure companies never need to think about rising data sizes. As part of the modern

technology, almost 90 per cent of people are in favor of cloud computing applications.

status of these 3 technologies in Bangladesh:

Bangladesh is a developing country and if a country has to develop than they need to adjust and adopt

new technologies. In recent years Bangladesh have seen many developments because new technologies

are being used in almost every sectors. AI's technological evolution began long ago but its impacts are

now being exposed in our country. Some specific sectors have been identified for effective

implementation of AI in Bangladesh such as services, transportation, education, agriculture and health.

We see tremendous use of AI technologies such as ride-sharing, Chatbot, hotel and flight booking, real-

time mapping, etc. in our day-to-day lives. Bangladesh has 34 per cent of young people who are

technologically powered by AI 's strong interaction with the current strategy holds a huge potential for

the country's future growth. After digitalizing the whole country still in some areas our country is in

backward step. Blockchain is a very reliable and futuristic technology which still hasn’t been adopted by

Bangladesh. If the government of Bangladesh do not support this system than it would be very difficult to

realize the potential of blockchain. Because it will have the most impact in developing countries like

Bangladesh. Bangladesh is a very corrupted country and blockchain works against corruption. So, it is

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mostly needed in our country to prevent the corruptions. Blockchain also transfer money in a very short

time without third party. Bangladesh earn a huge portion from its foreign remittance. so, it will be a huge

step if Bangladesh government implement widely blockchain. We know that in 2016 hackers stole $100

million from the central Bank of Bangladesh. If blockchain was used in Bangladesh than this incident

would not happen because of blockchain’s security. As for the cloud computing it not very widely used

technology in Bangladesh but there are some works and decisions has been taken to expand this

technology in whole country. This technology aims to provide the clients a cost-effective means to

manage huge amount of IT resources. Some cloud service providers are working to expand their cloud

services in Bangladesh such as Amazon web services, Google cloud services and oracle. At the Microsoft

Cloud Innovation Summit on 'Transforming Bangladesh with Cloud' in Dhaka, Sook Hoon Cheah,

president of Microsoft South East Asia New Markets, recently observed that Microsoft is aiming to get

huge business through its cloud solution segment in Bangladesh, especially from the private sector, as the

country has been advancing digitally for the last few years.

References:

1. https://medium.com/the-mission/a-simple-explanation-on-how-blockchain-works-
e52f75da6e9a

2. https://www.sciencedirect.com/science/article/pii/S2542660519302331
3. https://cio.economictimes.indiatimes.com/tech-talk/ai-blockchain-and-cloud-will-be-game-
changers-for-the-financial-services-sector/3415

4. https://www.investopedia.com/terms/c/cloud-computing.asp
5. https://www.globalbankingandfinance.com/impact-of-technology-on-the-financial-sector/
6. https://builtin.com/artificial-intelligence/ai-finance-banking-applications-companies
7. https://www.fintechnews.org/10-use-cases-of-blockchain-technology-in-banking-2020/
8. https://tbsnews.net/tech/artificial-intelligence-bangladesh-perspective-44017
9. https://tbsnews.net/tech/blockchain-technology-bangladesh-perspective-44271
10. https://www.fastmetrics.com/blog/tech/what-is-cloud-computing/

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