HowGen-AI Transforming the Banking Ecosystem

How Gen-AI Transforming the Banking Ecosystem Presented by Sushant Ajmani

Emerging Trends in the Payments & Banking domain

Payments Blitz-scaling

Banking Transformation

Gen-AI & Cybersecurity

The MENA Digital Payments Market size is estimated at USD 226.53 billion in 2024 and is expected to reach USD 380.86 billion by 2029 growing at a CAGR of 10.95% during the forecast period (2024-2029).

Bahrain is at the forefront of introducing open banking in the Middle East emphasizing financial inclusion. Its 2018 program expedited the adoption in the MENA region.

With the arrival of the Gen-AI wave, Cybersecurity discussions have heated up, and almost every regulated entity is looking at this wave cautiously.

Apple, Samsung, PayPal, and Alipay are raising the competitive bar, and expediting the scale.

A significant % of private sector banks are gradually adopting enterprise cloud infrastructure and aspiring for significant cuts in their IT operational cost.

Banks are embracing the Gen-AI wave, and doing a lot of controlled experiments with an objective to identify scalable opportunities for FY25.

NBFCs brought a new wave of credit for MSMEs and Retail customers, but funding and regulatory challenges have curtailed their growth.

Top-notch CX, tightened Fraud Prevention Frameworks leveraging LLMs, and cybersecurity are large banks’ top 3 focus areas.

Knowledge Discovery, Service Center Cost Optimization, CX, Underwriting, Regulatory Filings, and Market Intelligence are some of the prominent use cases banks are exploring.

Fintechs are consistently struggling with regulatory pressures and profitability, but they have a strong distribution channel for the Banks and are investing consistently in Customer Experience and Cost Efficiencies.

There is also an emerging trend around going after new-age cloud-native, API-first core credit card processing engines.

There will be a push for both closed-loop proprietary and open-source LLM models. and there would be a higher expectation around transparency, data security and regulatory compliance

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Knowledge Discovery @ Scale Summarization, Search, and Conversational Insights.

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Financial News Summarization LLMs can summarize the financial news articles, reports, and research papers and generate condensed version for quicker personal consumption.

Regulatory Updates & Compliance LLMs can monitor and analyze regulatory texts, master circulars, master directions, draft notifications, and past regulatory filings.

Market Intelligence LLMs can analyze the past market research reports, brand studies, panel discussions, financial news, social media conversations and enable informed investment decisions.

Customer Behavioral Analysis LLMs can analyze customer interactions, transaction histories, and communication logs between agents and customers and aid in creating personalized services and targeted marketing campaigns.

Knowledge Base Creation LLMs can also parse through cross-department and cross-geo data artifacts at scale, understand the patterns, and build a centralized knowledge base. © Course5 Intelligence

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Strengthening Fraud Prevention Monitoring, Anomaly Detection & Alerting

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Customer Interaction Monitoring LLMs can analyze cross-channel interaction points of the customers and detect inconsistencies in their language, and behavior to raise red flags.

Pattern Recognition in Customer Communication LLMs can compare the historical and current interactions including, conversation with agents via call, email, chat and even through social support channels.

Anomaly Detection in Textual Data LLMs can parse through emails, chat logs, and transaction descriptions to identify linguistic anomalies and unusual language patterns.

Automated Fraud Alerts LLMs can analyze the fragmented unstructured data and generate fraud alerts based on the parsing of the textual data and publishing it to the downstream systems.

Fraudulent Account Creation Detection LLMs contribute in to detecting fraudulent account creation by analysing the language used in applications and associated documents. © Course5 Intelligence

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Credit Risk Assessment Sentiment Analysis, Contract Reviews & understanding Market Trends and economic Indicators

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Sentiment Analysis in News & Reports LLMs can analyze financial news articles, analyst reports and market commentaries to determine positive, negative and neutral sentiments

Market Trends and Economic Indicators LLMs can analyze the economic reports, central bank statements, annual reports, industry publications, and macro-economic data points.

Regulatory Compliance Monitoring LLMs can parse through regulatory texts, legal documents, compliance guidelines, master directions, and master circulars from the Regulators.

Contract Review and Analysis LLMs can extracts key terms and conditions from loan documents, contracts, and legal agreements.

Communication Analysis LLMs can parse through email communication, chat logs, customer support interactions, dispute filings, and transaction descriptions. © Course5 Intelligence

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Responsible AI Basic constructs to drive the Gen-AI programs in a Regulated ecosystem Ethical AI Principles

Fairness, Transparency, Accountability, and Privacy Protection

Data Governance & Security

Encryption, access controls, data anonymization, and regular audits

Regulatory Compliance

Being compliant with GDPR, CCPA, PSD2, and regulatory guidelines

Risk Management & Auditing

AI Implementation risks include bias, hallucinations, model drifts, and unintended consequences.

Transparency & Explainability

Need for transparency around algorithms impacting customer interactions, credit scoring, and risk assessment.

Accountability & Governance Structure

Executive oversight, data stewardship, compliance teams, and ethics committees

Continuous Monitoring & Improvement

Enablement of closed feedback loops, and monitoring to evaluate performance & fairness

Stakeholder & Engagement

Alignment with organization goals and values and soliciting inputs and feedback from Stakeholders

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Thank You

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