How Generative AI is Changing the Face of Financial Services
Nov 9, 2023
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Anu Sachdeva, global solutions & service line leader for banking and capital markets, joins the show to discuss the opportunities and change that generative AI can bring to financial institutions. They also explore key considerations, integration steps, and unexpected use cases. Sponsored by GenPact.
Generative AI offers exciting opportunities for financial institutions beyond productivity, including automating software development processes and streamlining internal payables.
To effectively harness generative AI, financial institutions need to prioritize outcomes, integrate it with other technologies, ensure data readiness, establish clear processes and KPIs, address change management, and have leadership buy-in.
Deep dives
The Power of Generative AI in Financial Institutions
Generative AI is revolutionizing financial institutions, offering exciting opportunities and challenges. It is important to understand that AI goes beyond productivity and can be applied in various areas. The technology is still new, but success stories are already emerging. Morgan Stanley, Goldman Sachs, and Westpac have seen the benefits of using generative AI. The potential of generative AI is comparable to the introduction of electricity, allowing for the creation of new designs and solutions. Examples of generative AI applications include automating software development processes and streamlining internal payables. In the financial services industry, generative AI is being tested in underwriting and delinquency management to reduce cycle times and improve efficiency.
Considerations for Financial Institutions to Harness Generative AI
Financial institutions need to prioritize specific outcomes when harnessing generative AI. It should be integrated as part of the overall technology stack, combining it with cloud computing and robotic process automation. Data readiness is crucial, ensuring that data is clean and well-labeled. Establishing a defined process with clear KPIs is equally important. Additionally, organizations must address change management and empower employees to embrace generative AI. Leadership buy-in is necessary to justify the cost and demonstrate the potential value of generative AI initiatives.
Use Cases of Generative AI in Banking and Financial Services
Generative AI has been applied in various use cases within the banking and financial services industry. One example is automating code delivery and accelerating testing in software development, resulting in a 60% reduction in time. GenPAC, for instance, improved its own payables process by 35-40% by leveraging generative AI. In the financial services world, generative AI is being explored in areas such as marketing, customer experience enhancement, and risk management. Solutions for underwriting and delinquency management are being tested to streamline processes and improve customer onboarding.
Challenges and Considerations for Implementing Generative AI
Financial institutions face challenges when implementing generative AI. One significant challenge is selecting the right partners who can provide domain expertise and contextualization. Data quality and availability are critical considerations, requiring trained data specialists and effective data governance. Organizations must also develop a target operating model and clarify ownership of generative AI models. Senior leadership buy-in is essential, requiring a focus on outcome-driven approaches rather than narrow point solutions. Change management is necessary to address employee concerns and upskill employees to work effectively with generative AI.
Generative AI is pushing financial institutions to rethink how they work in exciting ways. Early adopters are already seeing the benefits. But, before financial institutions can reap the rewards, there are considerations and lessons to build on. Prime among them is a warning: the most dangerous thing about AI is assuming that it only delivers productivity.
In this episode of Banking Transformed, we are joined by Anu Sachdeva, global solutions & service line leader for banking and capital markets at Genpact, a global professional services firm focused on delivering outcomes that transform businesses.
Anu and I talk about the opportunities and change that generative AI can bring to financial institutions, the four key considerations for financial institutions and other enterprises to follow, the steps toward integrating gen AI most effectively, and the use cases that offer unexpected possibilities.
This episode of Banking Transformed Solutions is sponsored by GenPact
With 25 years of experience leading digital transformations at Fortune 500 companies, Genpact empowers financial institutions to develop, deploy, and scale gen AI solutions. Fast. At Genpact, we do more than rethink banking operations; we're democratizing AI so firms can anticipate customer needs, deliver seamless experiences, reduce financial crime, and grow revenue. Learn more about our AI solutions.
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