Voice recognition is a key requirement for the adaption of new digital technologies in banking. Switzerland has a problem in that respect: computers don't understand it. A company founded by Alexey Popov is about to change this.

The U.K.'s Barclays and HSBC banks were the first to introduce a software for the recognition of the voices of their customers, allowing the identification of clients over the phone. The voice is pretty much like the fingerprint of a person – biometric and thus ideal for the purposes of identification.

Smaller banks in the U.K. have since followed suit and introduced the technology as well following a demand by their clients. This is always a foolproof sign that a new technology and service is providing something extra.

Swiss Lingo – a Challenge Even for Computers

Swiss banking is – of course – looking into the issue, but faces a serious problem: computers need to understand the four national languages and countless dialects.

Alexey Popov is about to provide the solution to their problem. His Swiss startup company, Spitch, has developed a software that understands Swiss German. The company in November presented the software to the general public and made live tests. Now the computer seems ready for use.

«In Switzerland, we initiated projects with several banks, but with customers in other industries, in a bid to proof that the technology works without any problems,» Popov said in an interview with finews.ch. «The customers clearly are interested,» the Russian added.

Analytical Tool

The entrepreneur previously started a company for mobile banking software, worked as an asset management boss at the Russian treasury, as boss of IT for the Russian government and vice chairman of Sberbank.

Voice recognition technology can be used at many companies. The identification of customers is only the beginning, because the software is able to translate a customer request into a written demand. It is also capable of analyzing and structuring conversations.

For banks, this is crucial: big data is what some of them see as a true treasure.

Managed by Voice

«In banking, the use is going beyond of what you need at call centers,» Popov said. «In private banking, the analysis and verification of voice is an advantage for the client adviser, for instance in the administrative tasks of recording information and orders.»

«Managed by voice» is a term used in mobile banking. Theoretically, customers today could establish a contact with their banks while driving on the motorway, ordering their advisers to execute a transaction.

The possible consequence of voice recognition in banking might be the end of online banking, some say.

«I wouldn't say that our software spells the end for online banking,» Popov said. «But it is there to expand the options.»

More Banking Options

The Russian says that voice recognition software has the potential to become the most important communications channel between bank and client.

Popov and his team of 40 are only at the beginning of the voice revolution. Spitch is working with the University of Zurich, the Federal Institute of Technology and Swisscom, not least because it needs access to data for the refinement of the software.

Spitch on Tuesday will hold a seminar for Swiss banks and in September Popov will personally introduce the tool to banks and insurers at the Dolder luxury hotel in Zurich.