Financial institutions big and small are exploring AI, but before diving headfirst into the technology, they are learning from proofs of concept.
Florida-based Ocean Bank, for one, is midway through an AI proof of concept (POC) addressing some of its biggest pain points alert volume and investigation time, Alex Sardinas, vice president and regulatory risk optimization manager, said Sept. 16 at The Assembly by ACAMS in Las Vegas.
“Being a $7 billion bank, some might believe that we’re hesitant or reluctant to leverage AI, or that an institution our size doesn’t have the resources or the ability to leverage AI,” Sardinas said. “I’m here to say that that’s not the case.”
Using machine learning as the AI component in the POC, the bank has reduced customer alert of fraud by 50%, while retaining nearly 90% of suspicious activity reports, Sardinas said.
“I’m a big proponent of POCs,” Sardinas said. “Nine times out of 10, [a] vendor will work with you [on a POC] because they want your business.”
Read more: KeyBank identifies 40 AI proofs of concept
Shannon Bennett, senior vice president of compliance technology and product management at Wintrust, echoed the sentiment.
“I’m a huge proponent of POCs, especially with AI,” she said.
POCs might cost an FI money, but pays off by what can be learned, she said. It allows an FI to understand the investment it is making.
POCs in action
Ocean Bank and Wintrust join Cleveland, Ohio-based KeyBank in their views on POCs.
The $186 billion bank is evaluating 40 POCs, Ken Gavrity, head of commercial banking at Key, told Bank Automation News in August.
The bank is experimenting with AI for customer service, AML screening, coding and more, he said.
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