BMO and iA Financial Group are leading the charge to leverage cutting-edge technology to innovate within the financial services sector. BMO, the first Canadian bank to join the IBM Quantum Network, and iA Financial, known for its integration of artificial intelligence (AI), are setting new standards for how financial institutions can operate effectively and responsively.
BMO announced its membership with the IBM Quantum Network, gaining access to IBM's advanced quantum infrastructure. This partnership aims to redefine the bank's investment strategies, improve risk management, and drive substantial business growth, all under the umbrella of its "Digital First" strategy. “BMO’s access to IBM’s quantum systems... holds transformative potential,” said Dr. Kristin Milchanowski, BMO's Chief AI and Data Officer, highlighting the significance of this leap for clients, customers, and broader community impacts.
“Financial institutions... are rapidly making the technology a key element of their strategy, today,” remarked Dr. Scott Crowder, Vice President of IBM Quantum Adoption and Business Development. The infrastructure provided through the IBM Quantum Network allows BMO to develop and deploy solutions across its operations, optimizing investment portfolio strategies and generating deep insights necessary for effective risk management.
Meanwhile, at iA Financial Group, Simon Roy is making waves as the company’s first Chief Technology Officer. His commitment to AI was clearly demonstrated during the pandemic; Roy helped move iA Financial forward with initiatives to embrace this technology. “There was truly a belief we needed to embrace AI,” Roy noted. This sentiment reflects a broader shift where financial services firms see themselves not just as banks but as technology companies, ready to adapt to rapidly changing environments.
iA Financial kicked off its AI deployment with the integration of Microsoft’s ChatGPT tool as part of ensuring efficiency gains across its operations. This limited pilot program allowed select employees to experiment with the new tools securely. “We started by deploying to two agents,” Roy explained. The move proved successful, leading to increased adoption among staff.
Notably, the forward-thinking at iA includes discussions with former Google executive and iA board member, Nicolas Darveau-Garneau, who stepped down from the board to serve as AI strategic advisor. Darveau-Garneau remarked, “AI is going to make the internet revolution look like nothing.” This statement encapsulates the ambition behind iA's extensive AI roadmap, which aims for automation across its underwriting processes.
One of their ambitious goals is to automate 80% of the life insurance underwriting by 2030. “Imagine being able to have clients walk in and get approved right off the bat,” Roy stated, setting the stage for transformative changes to customer experiences. The integration of AI tools across various segments of the business, such as life insurance application processing, showcases how AI can significantly reduce the time and requirements typically associated with these types of transactions.
AI's advantages extend beyond client services. Roy envisions using large data processing capabilities to develop more personalized client experiences. “Let’s say we detect our client has become a parent,” he suggested. With this data, iA can offer relevant financial products proactively, adapting to clients' life events.
The financial services sector is at the cusp of transformation driven by technological innovation. While AI is being leveraged for client interactions, it's also being used within internal frameworks for improved productivity. Roy elaborated on initiatives where the firm has adopted Microsoft Co-Pilot and Google Vertex AI chatbots, which help advisors and other professionals navigate organizational systems efficiently.
“We integrated the generative AI interface so they can ask questions and get answers much faster,” Roy said, underscoring the importance of AI in simplifying complex processes within the financial industry.
Overall, both BMO and iA Financial are emblematic of the financial services industry's embrace of technology, utilizing AI and quantum computing to redefine operations and improve client relationships. The future of finance is undoubtedly intertwined with technological advancements, and these Canadian firms are at the forefront of this evolution, demonstrating the potential of AI and quantum solutions to revolutionize service delivery within the sector.
With their proactive approaches to digital transformation, these institutions highlight the necessity for adaptability and preparedness for the inevitable changes technology will bring to financial services.