Financial operations with GenAI: Optimal management for the banking industry

The biggest challenge for banks and fintechs is to find the balance point. On the one hand, informed and demanding customers who require a better experience and immediate attention. On the other, strict regulations that cannot be avoided. In between, increasingly sophisticated fraud strategies. Can all of this be addressed simultaneously? Welcome to the era of financial transactions with GenAI.

Challenges in the banking sector

Indeed, the number of challenges facing the financial services industry is growing. Here are some of the most prominent ones.

Risk management and regulatory compliance

Regulatory compliance and risk management are two of the fundamental pillars for the sector.

Trust in the financial system rests to a large extent on this. Therefore, companies in this industry need strong systems that include the identification, assessment, mitigation and continuous monitoring of risks. Customers need real-time solutions and it is imperative to perform all these tasks with maximum efficiency and in real time.

Moreover, regulatory frameworks and compliance capabilities must be continuously analyzed as they change frequently, especially in the region.

Service customization

In an increasingly competitive market, banks need to customize their services to differentiate themselves.

Customers are increasingly demanding speed, efficiency, accessibility and flexibility. All while interacting through the multiple channels of their choice.

Providing personalized experiences can be a challenge for companies in the market, which typically have information gaps and do not have a 360º view of the customer. In this context, it is key to have initiatives, tools and data platform processes that allow banks to take advantage of customer data in a timely and agile manner. 

In addition to this, the proliferation of GenAI models allows us, in conjunction with traditional ML techniques and models, to use this data in the context of financial operations and perform advanced analysis to understand the needs, habits and preferences of each customer. This enables us to offer highly accurate and targeted products and services.

Fraud prevention and transaction security

The increase in digital transactions led to an associated phenomenon: a significant increase in fraud attempts. In this context, banks need to implement advanced protection measures.

In addition to traditional techniques of early detection and fraud prevention through predictive modeling, we can incorporate GenAI into these key processes.

Banks can augment the capabilities of their customer service teams with conversational assistants to automate part of the information gathering process. For example, when someone is unaware of a transaction from a credit card. An LLM-based agent is used to establish data such as transaction, date, amount or card information, which will then be used in the analysis. 

Improved customer experience and loyalty

Associated with personalization, improving customer experience and loyalty is key to sustained growth. This involves delivering high quality care, solving problems efficiently and providing added value through loyalty and rewards programs.

By using LLMs, marketing teams can generate relevant messages and content for each customer, in an appropriate and personalized tone. 

GenAI solutions for banks

The number of use cases for driving financial transactions with GenAI is growing every day. Here are some of the most outstanding ones:

Predictive Analytics for Credit Risk Assessment and Fraud Detection

With GenAI it is possible to analyze images or audio recordings. From this, it is possible to detect possible fraud, such as document forgery or phishing attempts.

Moreover, maximum accuracy can be achieved in credit risk assessment. Among other things, this technology makes it possible to collect information on customers’ credit history and risk tolerance.

Process automation

Automation alternatives are manifold and impact different layers of business.

From customer underwriting and enrollment to processing documentation to analyzing and ensuring compliance, the options are limitless.

For example, it is possible to automatically process payment receipts or invoices through images, extracting the relevant information.

Personalized digital platforms and enhanced user experience

Digital platforms are essential to deliver a superior customer experience.

The implementation of intelligent chatbots that can interact in natural language tends to revolutionize people’s interactions with banks. Added to this is the simplicity of intuitive mobile applications and the significant increase in online services.

Moreover, with machine learning solutions it is possible to deliver personalized recommendations for customers. Or provide them with a financial virtual assistant, which solves queries related to the management of portfolios, investment advice and planning to optimize financial strategies.

Together, these solutions improve customer satisfaction and reduce operating costs by automating routine tasks.

Conclusions

Banking and fintech companies need to combine agility with security, customer personalization with robustness, innovation with compliance.

Financial operations with GenAI can meet all these requirements simultaneously. The companionship of an expert technology partner such as Nubiral is key for all this power to become a realization. A technology that, to use industry terms, should be generating maximum interest in companies in the sector.

Interested in boosting your business with GenAI? Our experts are waiting for your call: Schedule your meeting!