How genAI is changing financial services

By Michael Cullum, Vice President of Engineering at Bud Financial

Generative AI (genAI) is a powerful tool that is transforming the financial industry and empowering financial services professionals. It enables banks to manage data and gain insight, improving decision making; giving serious feedback; and achieve greater speed, personalized service, and automation. The value of transactional data is at the center of this transformation, providing valuable insights into customer behavior and providing management insights.

Banks are increasingly adopting genAI to improve operations, from spending discrimination and performance monitoring to improving risk decisions and predictive customer service. The key to these benefits is improving transaction data. This process includes updating transaction information with contextual information, including merchant information, transaction location, payment processing information, and spending categories. Improved data allows banks to create a complete picture of customer behavior, enabling personalized services and accurate risk assessment.

The cornerstone of genAI’s success lies in the quality of the bank’s data, with customer interactions as its most valuable asset. Transaction data provides deep insights into customer behavior and market dynamics, which, when analyzed in detail, can generate significant benefits across the banking value chain. From improving risk decisions to creating new propositions and delivering exceptional customer service, the potential applications are endless.

The main target of genAI discussions in the banking context are large language models (LLMs), which deal well with text information but are more effective when working with natural language. This poses a challenge for banks because a lot of data needs to be processed to be useful for genAI. For transport, this means adding dimensions that can be interpreted in natural language and with as much sophistication as possible to ensure that all possible patterns and similarities will be found.

“The successful use of genAI depends on the breadth, depth, and quality of the bank’s data, and the most important data a bank has is customer interactions,” said Richard Berkley, PA Consulting.

Bud Financial (Bud) helps banks and financial institutions deliver that meaning to their customers, alerting them to ways they can improve their decisions. At the same time, banks can use this information to improve their decisions around areas such as affordability and application processes. Bud is working hard to improve customer sales data, providing customer experience that makes it useful across the business, including contributing to genAI applications, helping banks and financial institutions to find deep understanding of customer behavior, improving risk assessment, and providing personalized services. .

Bud’s platform handles a wealth of real-time data, providing actionable insights that improve customer engagement and operational efficiency. Bud uses advanced technologies such as DataStax Astra DB to seamlessly manage and scale their data operations, ensuring high performance and reliability. Astra DB’s agility and performance enable Bud to process hundreds of thousands of transactions per second, providing real-time information and services.

GenAI isn’t just revolutionizing financial services; it also encourages banks to use the full potential of their transaction data. Investing in data analytics and advanced AI models allows banks to gain deeper insights, improve customer service and drive innovation. As the financial services industry continues to change, financial professionals must stay updated and informed about the role genAI will play in shaping the future of banking, thereby keeping them motivated and be active.

To learn more about genAI in financial services, read the new report, How to use GenAI to Generate Customer Insights from Transaction data, from Bud and PA Consulting with contributions from DataStax, Google Cloud, and Zup Innovation. The report assesses the transformative potential of genAI in financial services, highlighting the emergence of ‘smart banking’ and the shift towards an ‘AI-first’ concept and detailing how genAI will drive transformational changes in financial services. policies and decision making process in banks. .

About Michael Cullum

DataStax

Michael Cullum is the VP of Engineering and Data at Bud, a London Fintech company that develops a platform used by the world’s top banks and fintechs to leverage the value and power of transaction data to gain 360 insights of customers and provide actionable information.