How Gen AI Will Forever Change BFSI - Brillio
                           Aditya Pande July 25, 2023

You’ve either heard of ChatGPT—the AI-driven chatbot from OpenAI that responds to natural language prompts with human-sounding dialog and new content—or you’re living on Saturn. Personally, I consider myself a real Chat-GPT enthusiast who wants to try using it for all my daily tasks.

I don’t think I’m alone. Thanks to ChatGPT, generative AI is experiencing an unprecedented surge in usage, transcending boundaries and captivating industries worldwide,  from healthcare to entertainment, finance to manufacturing. Companies and VCs are pouring money into building these large language models. According to McKinsey & Co., the industry has the potential to add $4.4 trillion to the global economy annually. In banking, McKinsey says, the technology could add $200 billion to $340 billion in value.

In the fast-paced landscape of banking, financial services and insurance (BFSI), innovation has become the lifeblood of success. Amid this backdrop, generative AI will ignite a paradigm shift in the way BFSI organizations navigate financial landscapes, make informed decisions and unlock opportunities.

Six use cases

Clearly, capturing value from generative AI is crucial for BFSI companies seeking a competitive edge. The ability to harness the power of AI-generated content has opened doors to enhanced customer experiences, improved operational efficiency and cost savings.

Stepping into the realm of Gen AI can be overwhelming, with a plethora of offerings and use cases vying for attention. Here are few examples of how generative AI will likely impact BFSI organizations:

  • Algorithm training. Enhances algorithm training by generating synthetic data, optimizing algorithm performance, ensuring explainability and facilitating algorithm monitoring and drift detection. Gen AI will also enable efficient model development, accurate predictions and informed decision-making.
  • Compliance & regulatory support. Helps ensure compliance by analyzing regulations, interpreting complex legal documents, and generating summaries or providing guidance on adherence to specific regulations.
  • Interpreting loan applications. Interprets business loan applications that contain nonnumeric data, as well as business plans.
  • Realtime customer analysis. Speeds up back-office tasks in commercial banking, such as answering questions in real time about a customer’s financial performance in complex scenarios.
  • Forecasting for complex scenarios. Trains forecasting algorithms by augmenting sparse data on business performance under certain economic conditions.
  • Stress-testing for investment banking. Stress-tests balance sheets that contain complex, illiquid financial products. The technology could help improve the precision of financial stability measures and lower the cost of compliance.

Our generative AI strategy

To guide BFSI organizations on harnessing the power of Gen AI, we have developed a comprehensive solution strategy that encompasses four stages: discovery, incubation, acceleration and scale.

  • Discovery. During this stage, we work closely with BFSI executives to assess the organization’s readiness for Gen AI implementation. We conduct a thorough evaluation of their existing infrastructure, data capabilities and business goals. This assessment helps us understand the unique challenges and opportunities that lie ahead.
  • Incubation. Here, we focus on data understanding and exploration. Our team of experts dives deep into the organization’s data ecosystem, analyzing vast amounts of structured and unstructured data. Through advanced analytics and machine learning techniques, we uncover valuable insights and patterns that can fuel the development of powerful Gen AI models. This process empowers BFSI institutions to make data-driven decisions, identify growth opportunities and optimize their operations.
  • Acceleration. During this stage, we focus on developing and refining Gen AI models that align with the organization’s specific use cases and objectives. Our team works in collaboration with BFSI stakeholders, iterating on the models and fine-tuning their performance. We pay close attention to model health, ensuring that the models remain accurate, reliable and adaptable to changing conditions. This iterative approach ensures that the Gen AI models continuously evolve and deliver optimal results.

Model governance is a key pillar of our solution strategy. We prioritize responsible AI, data privacy and transparency throughout the entire process. This includes implementing measures to detect and mitigate model drift, ensuring that the models remain aligned with regulatory requirements and ethical standards. By prioritizing model governance, we empower BFSI institutions to maintain the trust of their customers and stakeholders.

  • This is the phase in which value realization is achieved. This involves deploying the models in real-world scenarios and measuring their impact on key performance indicators. By integrating Gen AI into various business processes and workflows, BFSI institutions can unlock operational efficiencies, enhance customer experiences and drive business growth.

Unleashing hidden value

In today’s financial landscape, where regulatory requirements are complex and constantly evolving, our solution offers a strategic advantage.

With Gen AI as our ally, Brillio can empower organizations to meet compliance demands efficiently and effectively. From ensuring data privacy to implementing robust model governance and responsible AI practices, our solution is tailored to address the specific regulatory challenges faced by the industry.

By leveraging the capabilities of Gen AI, our clients can proactively detect anomalies, monitor transactions and adhere to ethical standards. This not only safeguards customer trust but also ensures compliance with regulatory frameworks, positioning our clients as leaders in responsible AI practices.

Conclusion

Generative AI is a catalyst for unprecedented customer experiences, an amplifier of operational efficiency, and a gateway to innovation. This technology will undoubtedly transform the BFSI landscape and usher in an era of extraordinary possibilities.

Interested to learn more about the game-changing impact of Gen AI on the BFSI industry? Let’s connect!

About the Author

 

Aditya Pande

Aditya is a Consultant in the BFSI vertical at Brillio. He is experienced in designing deal solutions, providing design-thinking-led consulting and developing GTM strategies. Aditya is an MBA graduate, with majors in marketing and IT.

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