Generative AI Transformation Series Part 4
In recent months, we’ve been exploring the different financial institution stakeholders impacted by the groundbreaking introduction of generative artificial intelligence (AI) and what this new technology means for the future of their roles.
Let’s go deeper into another one of these groups: operations and technology teams.
Automate and Analyze with Gen AI
Generative AI, an advanced technology that enables machines to generate content in response to natural language requests, has emerged as a transformative force in the financial services industry.
McKinsey research from 2019 found that Operations accounts for 15 to 20% of the average bank’s budget. Large and small banks alike have an opportunity to tap into generative AI to streamline back-office support, remain relevant, and meet evolving customer expectations.
In particular, you operations units can deploy gen AI in two key ways:
- Automation: Eliminate repetitive manual tasks, freeing resources for more strategic initiatives.
- Analysis: Examine and interpret operational data and patterns, identifying bottlenecks and areas for improvement.
This two-pronged AI approach allows your institution to operate with maximum efficiency, make data-informed decisions, and explore new opportunities for growth.
3 Operations Benefits of Generative AI in Financial Services
Your operations teams play a crucial role in the long-term success of your financial institution, but historically, they have been laden with outdated tools and processes that consume valuable time and introduce risk of errors and delays.
By tapping into a technology-forward ecosystem powered by generative AI, you can relieve your people of these burdens and realize true business transformation. Your IT teams can help usher in this modern approach to financial service operations by implementing generative AI-powered solutions.
Here are a few of the benefits you can expect this technology to bring to your back-office operations.
Enhanced Speed & Efficiency
Your operations teams are tasked with identifying the greatest areas of opportunity for improvement across your institution; how can you deliver better, faster service at a lower cost to your business?
One of the primary ways generative AI can support operational efficiency is in the contact center, a historically high-cost business function.
AI-powered digital assistants provide immediate responses to routine customer questions that don’t require human interaction, and when human team members are needed, additional generative AI tools equip them with large volumes of relevant, accessible information in a matter of a few clicks.
Generative AI allows your teams to work more efficiently and deliver service more quickly, leading to a long-term positive financial impact. In addition to the improvements in productivity, as operational workers become more efficient, product applications can be processed more quickly, leading to improved time to revenue and increased share of wallet.
WATCH: Making Intelligent Digital Assistants Integral Members of the Team
Resource Optimization
A 2022 Crowe LLP survey found that the turnover rate for front-line banking staff increased to 23.4% despite average pay rising by 5%.
As this workforce shrinks, financial institutions cannot afford to over-rely on human labor and under-utilize technology – it’s an unsustainable operating model that introduces risk and hampers growth.
Generative AI, powered by advanced natural language processing (NLP) and machine learning, automates routine and manual tasks that tax employees, like data entry, document processing, and information retrieval.
They are then free to do the work that only humans can do, including strategic decision-making, deep relationship-building, product expansion, and more. Plus, with predictive analytics and forecasting tools that leverage AI, you can better anticipate capacity needs and organize staff based on highest value areas across your organization.
Future-Readiness
The banking industry is experiencing a shift in the way employees and customers interact with each other, and it all centers around AI.
In the not so distant future, AI will no longer be one of the channels for reaching consumers – it will be a key component of every channel. By adopting AI-powered tools now, you have the opportunity to position your financial institution as a leader in this new reality.
Generative and conversational AI allows banks and credit unions to deliver highly personalized, frictionless experiences that proactively identify and respond to consumers’ financial needs. By prioritizing this future-forward approach you can make your technology investment one of your biggest assets.
From Technology to Teammate
To get the most value out of generative AI, operations and tech teams should embrace a paradigm shift in the way they approach introducing new tools to their financial institutions: it’s less like a software implementation project and more like onboarding a new employee.
The banking industry of the future relies on AI tools in the same way institutions have historically relied on their best bankers. Think about the orientation steps you take with new team members to ensure comprehensive job preparation; similar steps apply to organization-wide AI adoption.
Your operations and tech teams will need to ensure 1) your data is ready for generative AI tools to use, and 2) it integrates with your workflows in a way that aligns with business objectives.
And, in the same way you would encourage your people to collaborate with new team members, you want to foster a culture that welcomes and adapts to new innovations.
Shifting your institution’s point of view from “AI is technology” to “AI is a teammate” is the first move toward real business transformation.
Learn More from Kasisto
Want to learn more about the future of AI in banking and what it means for your operations and tech teams? Check out ChatGPT Perspective: A Conversation with Kasisto’s CTO or contact us to start a conversation with our team.
