Despite the inherent risks, banks are increasingly optimistic about the transformative potential of GenAI in reshaping their operations. While the current benefits may seem incremental, financial institutions are anticipating substantial advancements in productivity, cost efficiency, and revenue generation driven by GenAI technologies. Early adopters have already demonstrated significant progress, with 48% already implementing GenAI in production—a figure projected to soar to nearly 84% based on proactive frontrunners' estimations as per a Celent Survey
Diverse Adoption Patterns Along the Value Chain
The adoption of GenAI exhibits notable disparities across different segments of the banking value chain. Information technology (IT) and data-centric functions lead the pack in terms of adoption levels, closely followed by marketing departments. This trend can be attributed to the perceived lower risks associated with these areas (employee-centric, minimal regulatory hurdles, human oversight feasible) and the high potential for enhancing productivity. Primary use cases revolve around IT and Data applications, particularly focusing on code generation and anomaly detection models, followed by data analysis tools tailored for customer-facing personnel and marketing teams.
For e.g., Code creation using Gen AI: This solution caters to auto code generation, suggestions and reviews for the developers leading to an overall reduction in effort up to 30-40%.
Critical Success Factors Driving GenAI Implementation
Several key success factors underpin the effective integration of GenAI within banking institutions. Organizational and operational support and alignment are pivotal in fostering a culture that embraces AI-driven solutions. Furthermore, ensuring high data quality and establishing clear regulatory frameworks are imperative for the successful deployment of GenAI initiatives. By addressing these fundamental aspects, banks can harness the full potential of GenAI while mitigating risks and maximizing benefits across their operations.
For e.g., Credit Migration risk: The risk analyzer can be used to assess z-score fluctuations and their impact on company stability. The solution uses GenAI to automate the application of the Z-Score model and analyze financial results declared by a firm. The platform presents analyzed data and commentary through a user-friendly interface, making it easier to understand and interpret results.
Exploring Priority Areas at Coforge BFS Business for GenAI Integration
Within Coforge BFS, a strategic focus is placed on leveraging GenAI technologies across various sub-verticals within the banking and financial services sector. The following key areas are being actively considered as top priorities for GenAI implementation:
- IT & Data Transformation:
Within the software development life cycle (SDLC), particular emphasis is placed on activities such as debugging, refactoring, test case generation, test data creation, and comprehensive documentation. By harnessing GenAI capabilities in these areas, Coforge BFS aims to enhance efficiency, accuracy, and overall software quality.
For e.g., Automation test scripts using Gen AI: This solution empowers developers to save time in generating test cases and automation scripts by providing pre-generated scripts based on JIRA stories, leading to 40% reduction in effort with increased test coverage.
- Enhancing Customer Engagement—Internal Focus:
Recognizing the crucial role of customer-facing employees in delivering exceptional service, Coforge BFS is exploring GenAI solutions to empower these staff members with robust tools and resources. The focus lies on enhancing productivity by facilitating quick access to vast amounts of information that employees need to comprehend and reference effectively. Moreover, GenAI applications are being developed to summarize and analyze call center interactions, aligning with the evolving dynamics of customer engagement.
For e.g. Assistive problem solving: A solution to provide Assistive Query Resolution for a large US based organization leveraging Gen AI Document Processing, reducing nearly 40% tickets creation.
- Revolutionizing Marketing & Sales Strategies:
In the realm of marketing and sales, GenAI holds immense potential for diverse applications aimed at optimizing customer interactions and driving revenue growth. From analyzing customer behaviour patterns, including digital customer journeys, to evaluating best sales practices, GenAI enables Coforge BFS to extract valuable insights from online feedback, comments, and various data sources. Additionally, the generation of initial drafts for marketing collateral and sales materials is streamlined through GenAI-powered content creation tools, enhancing efficiency and creativity in these domains.
For e.g. Personalized recommendations – marketing, emails, website content: A solution that creates personalized emails for customers with automated offers embedded for a large asset management firm.
By strategically focusing on these priority areas, Coforge BFS aims to catalyze innovation, drive operational excellence, and deliver enhanced value to both internal stakeholders and external customers through the effective integration of GenAI technologies. This concerted effort underscores the organization's commitment to embracing cutting-edge solutions that empower its teams and elevate its competitive edge in the rapidly evolving landscape of banking and financial services.
