15BANKING AND FINANCIAL SERVICES: AI AS A DISRUPTIVE FORCE
AI has always been a game-changer in finance, but GenAI will take this to a whole new level. GenAI's ability to create content, analyze data, simulate scenarios, and optimize processes will enable financial institutions to make more informed decisions, innovate in product design, improve the services delivered to customers, enhance risk management practices, and maintain compliance more efficiently. As such, GenAI will profoundly change the landscape of banking operations.
As we'll see in this chapter, banks and other financial institutions are already starting to implement GenAI. It's not something they're shying away from. In fact, I think GenAI will end up bringing one of the biggest shakeups the financial world has seen – for example, by democratizing financial advice for everyone. According to McKinsey, GenAI could add between US$200 and US$340 billion in value for banks per year (9–15% of operating profits).1 Safe to say, any bank that doesn't embrace GenAI, risks being left behind.
Generative AI Uses in Banking and Financial Services
So how exactly can banks and financial services companies use GenAI? Let's explore the main use cases from this industry.
General use cases and possibilities
We'll get to real-world examples later in the chapter, but for now let's explore some overarching uses for GenAI.
One of the obvious uses is in customer services – such as banking chatbots that can answer questions and respond ...
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