Generative AI in Banking: Real-Life Applications Worldwide in 2024
In banking, generative AI offers many benefits, from enhancing customer interactions to revolutionising operational efficiency. Despite some banks hesitating to adopt this technology, numerous success stories worldwide highlight its potential impact.
Exploring Success Stories of Generative AI in Banking
Wells Fargo: Innovating Virtual Banking Experiences
Wells Fargo leads the way in utilising generative AI through its virtual assistant app, Fargo. With over 20 million interactions since its launch in March 2023, Fargo, powered by Google’s PaLM 2 language model, assists customers with everyday banking tasks such as bill payments and fund transfers. Wells Fargo also employs open-source large language models (LLMs) for internal applications, including Meta’s Llama 2 model.
CBA: Improving Customer Experience and Combatting Financial Abuse
The Commonwealth Bank of Australia (CBA) explores Generative AI’s potential to enhance customer experiences and fight financial abuse. By creating AI-generated customer personas, CBA aims to understand and simulate customer behaviours in various scenarios, including potential scams or natural disasters. Moreover, CBA’s AI model helps identify digital payment transactions containing harassing or offensive messages, aiding in preventing financial abuse.
Deutsche Bank: Personalised Investment Guidance and Service
Deutsche Bank utilises AI algorithms to enhance customer service and investment advice. These algorithms analyse customer portfolios, identify risks, and suggest appropriate adjustments. By recommending suitable products based on similar customers’ portfolios, Deutsche Bank ensures personalised recommendations tailored to individual needs.
Bunq: Simplifying Banking App Search and Financial Planning with GenAI
Dutch fintech Bunq has introduced a user-friendly GenAI tool within its banking app, designed to replace the search function. It simplifies financial planning, app navigation, and transaction searches for its 11 million users across Europe. The tool functions similarly to ChatGPT, allowing users to effortlessly inquire about their bank accounts, spending patterns, and savings.
Payment Systems Leverage GenAI to Fight Fraud
Mastercard: AI-Powered Fraud Detection
Mastercard is deploying AI to combat fraud, aiming to enhance detection by up to 300%. The AI system analyses transaction details in real-time, focusing on account information, purchases, merchant data, and device identifiers. The company plans to make this solution accessible in late 2024, building on previous success in preventing scams through real-time fund transfer monitoring.
Visa: Investing in Generative AI Initiatives
Visa actively engages in generative AI initiatives, offering practical insights and recommendations through its AI Advisory Practice. The company has allocated $100 million to foster innovation in generative AI in payments and commerce, emphasising its commitment to transformative technologies in the future of finance.
PayPal: Streamlining Checkout and Preventing Fraud with AI
PayPal has announced new AI tools to streamline the checkout process, offer personalised cash-back deals, and strengthen fraud prevention. These tools use machine learning and graph technologies to analyse consumer data and merchant information, effectively enhancing payment authorisation rates and combating payment fraud.
Conclusion
Generative AI brings numerous benefits to the financial sector, from improving customer service to enhancing fraud detection. As adoption increases, financial organisations may face challenges, but the potential for transformative change is significant.
Contact Tovie AI for insights and consulting services to effectively navigate generative AI use in banking and finance.
