FinTech Magazine June 2024 | Page 66

RED HAT
This includes AI-based creditworthiness assessments by banks , as well as pricing and risk assessments , meaning banks must comply with heightened requirements for such AI applications .
As such , for Harmon , while this new technology “ could be really exciting , gain efficiencies and insights into customer behaviour , it must be implemented correctly ”.
“ If a bank does not implement AI to the latest , most relevant regulatory standards , it can lead to serious consequences .
“ So even though banks could do a lot , I think at first they ’ re going to select Gen AI application use cases that have immediate value , don ’ t require regulatory approval and don ’ t expose any customer data . This will include more sophisticated versions of what banks have already done , such as natural language processing .”
Red Hat customer Banco Galicia , an Argentinian bank , leveraged predictive AI and natural language processing to process corporate onboarding and new corporate customers , a process that previously would ’ ve taken weeks .
66 June 2024