AI in banking is poised for continued growth, with projections indicating a staggering reach of $64 billion by 2030.
BFSI organizations can harness the power of GenAI and the associated technologies to significantly streamline operations, optimize decision-making processes, and deliver highly personalized services. Reports from Business Insider indicate that approximately 80% of banks acknowledge the potential benefits of AI in banking. Juniper Research estimates that AI-powered fraud detection solutions will prevent $24.8 billion in global losses by 2025.
GenAI use cases in BFSI
Use case 1: Customer service and support
Typical run-of-the-mill customer service models rely on human intervention through service agents. There is a growing need for more automation to address the demands of modern consumers who yearn for highly personalized, instant responses to their problems.
Use case 2: Personalized financial services
GenAI can be a great driver for personalized financial services such as investment advice agents, tailored loan offers, automated portfolio management, and insurance products.
Use case 3: Financial advisory and wealth management
Financial advisors can leverage real-time analysis with GenAI to provide personalized recommendations to their clients. AI can help detect sudden shifts in market sentiments caused by geopolitical events or alert advisors to adjust investment portfolios and mitigate potential risks.
Use case 4: Fraud detection
the rise of digital banking, countermeasures toward fraud have become increasingly complex. This calls for the adoption of sophisticated tools and technologies powered by GenAI and implemented to detect subtle deviations in typical customer behavior to flag fraudulent activities.
Use case 5: Regulatory compliance and reporting
Financial institutions are required to produce detailed reports outlining compliance and regulatory rigor—a task that requires a great deal of human intervention. Instead, GenAI can analyze all the necessary data and regulatory information to generate accurate compliance reports promptly.
GenAI can drive efficiencies. The future of financial institutions lies in the strategic and responsible implementation of generative AI technologies, paving the way for robust growth. Transform operations and stay competitive in an increasingly agile and digital world.
