INTERVIEW WITH ...
Q . HOW IMPORTANT DO YOU THINK GENERATIVE AI IS BECOMING IN FINANCIAL SERVICES ? WHAT DOES IT MEAN FOR THE FUTURE OF FINANCE ?
» The ability to train Large Language Models ( LLM ) on vast amounts of unstructured data could yield the largest transformation that the financial services market has seen in decades . But Generative AI ( GAI ) won ’ t see meaningful adoption without specialisation .
Generalist GAI offerings in fintech won ’ t work because they don ’ t integrate with , and adapt to , the highly specific workflows , processes , and compliance requirements of financial institutions . The problem is that legacy core financial systems are notoriously closed off to new tools and technologies , hampering innovation . To fully take advantage of GAI innovation , embracing a new category of fintech infrastructure called fintech enablement is key . This type of platform extracts the data from legacy core systems to make it available to other systems and processes , provides a low code / no code environment that is specialised for financial products , and orchestrates APIs from existing legacy systems , combining it with GAI to deliver new solutions for employees and customers of financial institutions .
Q . HOW ELSE CAN AI BE UNLOCKED TO BOOST REVENUE ?
» Innovation is key to the survival of banks and insurers – from boosting revenue to retaining and growing customer bases and protecting margins . Those that figure out how to innovate at a fast pace will survive and thrive , and those that don ’ t risk falling behind .
This innovation includes using GAI to accelerate the creation of new financial products , and perhaps less glamorously , the automation of backoffice servicing . Innovating the back office is about modernising processes , using data to make better decisions across multiple stakeholders , and integrating ecosystem tools to reduce risk and accelerate decision-making .
When looking at GAI in practice , it is best applied in a well-defined environment that includes well-defined APIs and interface definitions . For instance , customers using the FintechOS platform can use GAI to generate Apache Camel code to accelerate their development timelines for new products . Furthermore , customers can also use our platform to speed up the integration of new tools that leverage GAI to perform better KYC , fraud detection , and risk underwriting . As a result , innovating their backoffice processes .
24 September 2023