Japan's Seven Bank enlists AI for ATM management
In a first for the banking sector, the company will try to apply AI to ATM management in order to reduce the need for transporting cash, a significant cost.
Seven Bank has begun separate trials with information technology group NEC and SOINN, an AI-related venture run by Osamu Hasegawa, an associate professor of engineering at the Tokyo Institute of Technology.
Both teams will attempt to predict ATM deposit and withdrawal activity based on past data covering five years. Their forecasts will be put to the test this summer, after which Seven Bank will choose one team as a partner.
ATMs typically hold 20 million yen to 30 million yen ($183,000 to $275,000) in cash. Sohgo Security Services, also known as Alsok, handles cash management for Seven Bank's ATMs, many of which are at 7-Eleven convenience stores.
Human experience and intuition play a large role in this management process, but humans cannot predict every situation, as when cash runs out at ATMs near the venue of a big event. Seven Bank pays an estimated 12 billion yen yearly for its service contract with Alsok, roughly one-fifth of its total ATM costs.