Myrna Kennedy, ANU School of Cybernetics

Abstract

Many of the world’s leading banks, including Australian banks, are at the forefront of using Advanced Analytics and artificial intelligence (AI) technology through their smartphone banking application. AI simultaneously brings value to the business, opportunities, and challenges that should be holistically viewed and adequately addressed to all stakeholders. In financial institutions specifically, AI has driven a dramatic shift in how to attract and retain active customers (World Economic Forum, 2018). Organisations like banks need to leverage analytics and AI, including machine learning and deep learning to compete effectively and drive customer value, deliver a more personalised customer experience and develop innovative new propositions (Deloitte, 2017). 

Smartphone has transformed the way we do banking from traditional physical transaction to digital online transaction. In this article, I will explore human-machine collaboration in the smartphone banking application with the focus on the sustainability aspect. I will use Cybernetics system thinking to provide a new way of reimagining the future of this collaboration with essential information on the implications of technology and machines, humans’ responsibilities, and sustainability for our environment. Cybernetics gives us a way of looking back and considering the technological developments in the banking industry. Particularly the one using Artificial Intelligence (AI) in terms of their patterns and systems, making sense of the relationships and feedback loops between those systems, as part of understanding and improving how those systems functioned holistically.  

Many banks are now beginning to invest in long-term sustainable financing commitments based on the data they have on their customer’s spending habits. They can target suitable customers to offer and invest in more sustainable products to create a better community support, increase customer loyalty and their financial well-being. The important role of customers not only as a user but more importantly as the essential collaborator for the future of sustainable banking.  Customers use their smartphone banking apps for almost everything in their everyday life. From the simple financial transactions such as paying for online grocery shopping to more advanced transactions such as applying for more sustainable “green” home loan or using AI in the recommendation systems for more personalised services.