As an ongoing effort to strength their digital offerings, Wells Fargo has created a team to develop an artificial intelligence-based technology. The purpose of this new technology is to help Wells Fargo provide more personalized customer service through its banker and its online services as well. Wells Fargo’s AI team is focusing on banks and other large financial institutions as they increase their investment in the emerging technology, which is trying to train computers tasks that would normally require human intelligence. The new intelligence system will be able to spot payment fraud or misconduct by employees, as well as make more personal recommendations to clients on financial products. It was also announced that Danny Peltz of Wells Fargo has been tasked with establishing relationships with other companies in the payment landscape, as well as being put in charge of the bank’s new API services. The API services technology will allow customers to integrate Wells Fargo products and services into their own applications. It is said that the teams will respond to virtual solutions and innovations, which is a division that was developed in October in an effort to enhance Wells Fargo’s digital products and services by combining their innovation teams and a couple of their business who are most affected by the changes in technology.
I believe that the development of this new artificial intelligence based technology is going to be extremely beneficial to Wells Fargo. Last year in 2016, Wells Fargo’s was big in the news headlines for an accounts scandal that had occur. It was discovered that Wells Fargo employees secretly created millions of unauthorized bank and credit card accounts without their customers knowing since 2011. The reason they did this was because the accounts earned the bank unwarranted fees which allowed employees to boost up their sales figures and earn more money. Employees were then able to meet their sales goals and receive bonuses. The employees did it by moving funds from existing customers’ accounts into the newly created ones without the customer knowing. The customers were then charged with over drafting fees and insufficient funds due to low amounts of money in their original accounts. As a result of this scandal, Wells Fargo was fined $185 million and $5 million towards refunds to customers. The company also fired 5,300 employees as a result. The new artificial intelligence based technology will help prevent incidents like this scandal from reoccurring by being able to spot payment fraud and misconduct by employees. Many customers after the scandal lost a lot of trust in Wells Fargo, therefore, by implementing new security options to ensure customers information is safe the company is slowly recovering from the scandal.