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AI & Gen AI are reshaping digital transformation of industries across the globe and BFSI sector is not an exemption for the same.
The Banking & Financial Institutions are undergoing through major changes with the evolution of rapid development in Artificial Intelligence (AI). As AI matures and new innovations are getting introduced such as Gen AI, the application of it in BFSI industry is increasing rapidly and it is transforming processes from customer service to risk management. The evolution of AI is impacting BFSI institutions as well as consumers.
Retail Banking:
With Gen AI evolution, many processes in the retail banking are simplified and customer experience is also enhanced.
Following are few use cases in Retail banking where AI evolution is leveraged –
Wealth Management:
Providing AI powered solutions to Financial Advisor will increase client engagement which will impact business growth through new client acquisition or enhancing existing client wallet share.
Investment Banking
Evolving role of AI helps to do real-time market analysis and sentiment analysis which help investment bankers stay ahead and make informed decisions.
Some of the detailed benefits of using advanced AI in investment banking is as follows.
Payments
Payment sector is getting revolutionized with advanced AI. It allows financial institutions to optimize the process of how banks process, secure and optimize transactions. Usage of advanced AI in some of the key functions are as follows:
Security
AI algorithms analyze large datasets of transaction data to identify transaction patterns, anomalies which indicates fraudulent activities so that proactive prevention is implemented. AI can be leveraged to automate tasks like AML compliance and regulatory reporting which improves efficiency and accuracy and reduces manual errors and efforts.
Insurance
AI is playing crucial role in Insurance sector as well and transforming it by automating tasks and improvising customer experience. Tailored customer support and streamlined claim processing and personalized product recommendations are some of the benefits of using AI in insurance sector which drives innovation and reduces cost.
Some of the use cases where AI is leveraged in insurance are as follows.
Conclusion
AI & Gen AI are game changer in BFSI industry by enhancing customer engagement to streamlining operations and managing risks. AI is reshaping BFSI industry to operate in digital way. It will augment human decision-making.
Financial advisors, compliance officer and relationship managers are empowered by AI-driven insights which helps them to serve clients better.
Ai’s role is evolving from support function to strategic enabler in BFSI industry.
References:
https://binmile.com/blog/future-of-generative-ai-in-banking/
https://www.empaxis.com/blog/generative-ai-wealth-management
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Igor Kostyuchenok SVP of Engineering at Mbanq
14 May
Jonathan Hancock Head of Product & Innovation at The ai Corporation
13 May
Aron Alexander Founder and CEO at Runa
12 May
Taras Boyko Founder at BTG Corporate Services Provider
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