# IKEA Foundation backs emerging market EV push with $100 million grant
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-08-25
Category: BANKING
Category URL: https://financedigest.com/category/banking
Meta Title: IKEA Foundation supports EV transition with $100M grant
Meta Description: IKEA Foundation donates $100 million to Drive Electric Campaign to promote EV adoption in emerging markets, aiming to cut greenhouse gas emissions and boost
URL: https://financedigest.com/ikea-foundation-backs-emerging-market-ev-push-with-100-million-grant-2html

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_By_ **_John Spooner,_** _head of Artificial Intelligence, EMEA at_ [_H2O.ai_](https://www.h2o.ai/) _, an AI technology software company_

_Though some banking organisations remain confused about AI and its relevance, a rapidly changing new set of post-COVID realities means it has to be central to digital transformation initiatives, warns AI software expert John Spooner._

Even before the start of the (sadly) still-ongoing global health crisis, banks were moving ahead with what we may not have then called ‘digital transformation’, but for sure was: opening up multiple new channels like online and mobile, with their eyes always on [the rise of the non-traditional bank challengers](https://www.financedigest.com/uk-consumer-appetite-digital-banking-grows-cashless-society-beckons.html) and payment apps.

And even before the pandemic, they also faced tough trading conditions that had [eroded profitability](https://www.financedigest.com/european-banking-study-2019-profitability-remains-key-issue-for-european-banks-systematic-digitalization-as-a-success-factor-within-growing-competition.html). Then, one sort of animal somehow crossed its DNA with another, and everything changed.

To cope, banks scrambled their fighter jets and lots of amazing, and almost all of it successful, pivoting to [digital went on (which I am happy to acknowledge as digital transformation)](https://www.financedigest.com/world-class-finance-digital-transformation-and-analytics-based-decision-making-among-key-imperatives-for-creating-finance-agility.html "World-Class Finance: Digital Transformation and Analytics-Based Decision Making Among Key Imperatives for Creating Finance Agility"). A new [report from IT analyst firm Juniper Research](https://www.juniperresearch.com/researchstore/fintech-payments/digital-banking-trends-report) says the majority, 53%, of the world’s population will be using digital banking by 2026, double the number now—and that by 2026, 4.2 billion people will have access to banking-as-a-service online.

But I’m afraid to say that now is no [time to sit on your digital](https://www.financedigest.com/playground-xyz-study-finds-carbon-emissions-from-digital-ads-fall-by-63-on-average-when-measured-and-optimized-for-attention-time.html "Playground xyz study finds carbon emissions from digital ads fall by 63% on average when measured and optimized for attention time") laurels. All over the world, COVID fundamentally changed the way people spend money and the way they interact with their banks (see MasterCard’s recent decision, sparked by the unstoppable rise of chip and PIN to make small payments instead of cash, to [ditch the magnetic stripe on its plastic](https://www.mastercard.com/news/perspectives/2021/magnetic-stripe/)).

But our spending is now going into a post-COVID phase, and we’re going to see, again, a change in activity: we don’t know what that will be, but it will certainly be very different to pre-COVID and very different from during COVID. Any applications for predicting behaviour and activity need to be looked at again to ensure any and all predictions can be constantly updated to [track the adjusting of customer behaviour over the next few weeks and months](https://www.financedigest.com/dollar-on-track-for-best-month-since-2015.html "Dollar on track for best month since 2015") of post-COVID life.

The lesson has to be that consumer (and business) behaviour change is now a constant—and that is a statement that, as I will show, applies to everyone who has [invested in data](https://www.financedigest.com/investing-in-the-future-with-alternative-web-data.html "Investing in the future with alternative web data"), and the best mechanism for understanding and predicting trends out of that data, AI/Machine Learning. Here’s how:

**Addressing the Fraud Challenge**

A lot of the fraud models you have in place are now probably not fit for purpose: either because they were still using older rule-based methodology, but also—and this is critical—even if you have machine [learning at the heart of your fraud and AML (anti-money laundering) processes, those machine learning models](https://www.financedigest.com/learning-from-the-disrupters-how-finance-brands-can-build-transformative-business-models.html "Learning from the disrupters – how finance brands can build transformative business models") are no longer based on the current reality. As a result, your fraud-fighting systems will soon start to generate a large number of false positives, which will [lead to increased cost to do a manual check of those false positives](https://www.financedigest.com/how-a-british-tech-brand-can-maintain-category-leading-position-and-continued-growth-by-investing-in-the-uk-people-and-infrastructure.html "How a British tech brand can maintain category leading position and continued growth by investing in the UK people and infrastructure"). In addition, customer satisfaction will get dinged as well, because if their card or [account has been stopped too often with no fraud](https://www.financedigest.com/onespan-launches-ai-based-risk-analytics-stop-account-takeover-new-account-fraud.html "OneSpan Launches AI-Based Risk Analytics to Stop Account Takeover and New Account Fraud") having taken place, they’re going to feel frustrated.

**How AI can help**

If you haven’t taken the step to use AI, now is the time. Why: it’s your best way to [increase the speed and accuracy of checking transactions](https://www.financedigest.com/over-half-of-organisations-would-consider-using-cryptocurrencies-for-business-transactions-though-8-in-10-acknowledge-the-increased-risk-of-associated-ddos-attacks.html "Over half of organisations would consider using cryptocurrencies for business transactions, though 8 in 10 acknowledge the increased risk of associated DDoS attacks").

**Addressing Optimal resource deployment**

What is the demand here on this resource? How is that going to shift? Do you want everyone [back in the office](https://www.financedigest.com/to-be-or-not-to-be-back-at-the-office-that-is-the-question.html "To be or not to be (back at the office)? That is the Question")? Do you [put the people in the call](https://www.financedigest.com/putting-the-action-into-your-call-to-action.html "Putting the Action into Your Call to Action") centres or your branches? Will [people coming off furlough still be needed](https://www.financedigest.com/banks-need-to-digitise-financial-wellbeing-support-to-help-young-people-manage-through-this-recession.html "Banks need to digitise financial wellbeing support to help young people manage through this recession")?

**How AI can help**

As stated, to remain competitive you will have to be able to quickly adapt, based on how [customers are going to be changing](https://www.financedigest.com/talk-to-me-the-changing-face-of-customer-communications.html "TALK TO ME :THE CHANGING FACE OF CUSTOMER COMMUNICATIONS") their behaviour. So, as the picture becomes clearer of what [customer](https://www.financedigest.com/meeting-both-operational-and-customer-demands-how-insurance-can-adapt-in-a-disrupted-world.html "Meeting both operational and customer demands – how insurance can adapt in a disrupted world") s are going to start to do, you’ve got to have a mechanism that can build accurate internal sourcing and deployment models and quickly deploy them—and just as importantly, having a feedback loop to make sure that they are changing and adapting on the fly as customer changes and adapts after.

**Making hybrid working work**

Some [banks say](https://www.financedigest.com/boes-bailey-says-bank-reforms-worked-but-questions-about-liquidity-buffers.html "BoE’s Bailey says bank reforms worked but questions about liquidity buffers") they want everyone back: some banks are tag-teaming and suggesting a flexible model; some say they want to be able to offer employee choice.

**How AI can help**

Looks like there’s going to be a lot of new, different [ways of working](https://www.financedigest.com/what-are-the-best-ways-to-become-more-productive-working-from-home.html "What are the best ways to become more productive working from home? ") here. To [work out what’s best for both your customers but also your team](https://www.financedigest.com/finance-teams-have-been-left-in-the-dark-on-the-real-cost-of-working-from-home.html "Finance teams have been left in the dark on the real cost of working from home") and internal staff, you’re going to need to base your models on accurate data. So, in the same way you’re now used to analysing [customer behaviour](https://www.financedigest.com/id-finance-transforms-customer-authentication-with-behavioural-biometrics.html "ID Finance transforms customer authentication with behavioural biometrics"), you can also be analysing employee feedback, too, and this can be at the level of tens of thousands of people across many sites and geographies. How do you capture all of the feedback about the new [changes quickly](https://www.financedigest.com/seeking-right-tone-new-uk-pm-truss-had-to-quickly-change-gear-for-queen.html "Seeking right tone, new UK PM Truss had to quickly change gear for queen") and then adapt?

A range of tools and techniques could help here, including sensors and desk usage data to map if people are behaving differently within the office, are they interacting differently, or to see if they are going [around the building in different ways](https://www.financedigest.com/5-time-efficient-ways-to-travel-around-the-philippines.html "5 Time-Efficient Ways to Travel Around the Philippines")? What [impact is that having on office](https://www.financedigest.com/trumping-the-markets-what-impact-has-the-new-us-president-had-in-his-first-month-in-office.html "Trumping the markets – what impact has the new US President had in his first month in office?") capacity and safe usage, e.g., are they having conversations safe spaces away from each other, is everyone vaccinated and so on? An AI platform for great, [real-time driven internal employee-based apps](https://www.financedigest.com/myfirmsapp-makes-real-time-autumn-budget-updates-available-digitally-on-easily-downloadable-app.html "MyFirmsApp makes real-time Autumn Budget updates available digitally on Easily Downloadable App") will be a huge aid.

**A word to the cautious**

These are just some of the ways that AI can help [banks gear up for a changing present and immediate future](https://www.financedigest.com/communicating-with-the-customer-is-the-future-of-mobile-banking.html "Communicating with the customer is the future of mobile banking"), bolstering their pre-COVID and post-COVID digital transformation successes. But can I finish with a hopefully reassuring note to what we might call the AI laggards?

Those organisations that don’t have AI in any serious fashion yet should bear in mind that everyone’s going through a [process of either building](https://www.financedigest.com/li-cycle-to-build-french-battery-processing-facility.html "Li-Cycle to build French battery processing facility") or rebuilding their models here. So, if you haven’t started on your journey, now’s a really good time to start, because no-one’s got a head start. Those [organisations that have invested in AI to some extent need](https://www.financedigest.com/why-a-modern-organisation-needs-an-agile-approach-to-software-asset-management.html "Why a modern organisation needs an agile approach to software asset management") to start again, to be honest, as their pre-corona models can’t now predict the future well at all.

So, to sum up: accept that COVID-era change hasn’t ended, and that by embracing change and using [data at scale is your best way](https://www.financedigest.com/three-ways-the-data-cloud-can-keep-financial-services-competitive.html "Three Ways the Data Cloud Can Keep Financial Services Competitive") of learning how to not just live in challenging times, but thrive in them.


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