Banking GenAI #8 - Insights for COOs

Welcome to the latest edition of GenAI for Banking COOs. In today’s newsletter, we cover global banking and capital markets examples of how GenAI is poised to disrupt everything from customer interactions to fraud detection. From Microsoft Azure's One.Chat platform powering personalized banking experiences, to Mastercard's Decision Intelligence Pro fighting fraud in milliseconds, the future of banking is intelligent and automated. Even product vendors like Broadridge are jumping on board, offering solutions like OpsGPT to optimize operations in a T+1 environment. But concerns exist – FIS's research reveals consumer anxieties about GenAI adoption. So, the challenge lies in building trust and transparency while leveraging this powerful technology for a more efficient, secure, and personalized banking experience. Buckle up, the future is coming fast. Let’s dive into it with today’s topics:

• The One.Chat Platform is the latest case example of GenAI in Banking
• Broadridge Launches OpsGPT to Transform and Optimize Trading in a T+1 Environment
• Mastercard’s GenAI-powered fraud detection tool promises efficiency and better customer experience
• Customers are concerned about Banks using GenAI – mitigation approaches like Responsible AI are key to win their trust

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The One.Chat Platform is the latest case example of GenAI in Banking

?Microsoft News recently covered Unique AG’S recent collaboration with Pictet Group and the successful deployment of their One.Chat platform, powered by Microsoft Azure OpenAI Service. The announcement details how this platform provides over 5,000 employees with streamlined access to internal information, regulatory compliance support, and tools for personalized communication. The deployment of One.Chat showcases the potential for AI-driven platforms to enhance operational efficiency by automating administrative tasks, accelerating processes, and improving IT support. The emphasis on regulatory compliance, data storage in Swiss datacenters, and the enterprise-ready nature of Unique’s solution also aligns well with similar requirements in other locations. ?Unique’s total investment of $24m, with plans to further develop a Microsoft Azure-based Co-Pilot platform, indicate a growing recognition of the pivotal role Generative AI can play in optimizing client-facing teams and automating tasks critical to day-to-day operations. We are excited to see our thesis of significant GenAI impact on Operational processes being proven out in the real world and wish the Unique and Pictet team the best as they further scale this out.

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Broadridge Launches OpsGPT to Transform and Optimize Trading in a T+1 Environment

Product vendors have started to introduce GenAI tools to solve for operational processes in the financial industry. A noteworthy addition is Broadridge Financial Solutions' OpsGPT discussed in its whitepaper here, a capability designed to simplify and optimize post-trade lifecycle operations. OpsGPT mark a significant stride towards addressing the challenges posed by achieving T+1 settlement cycles, efforts to optimize efficiency, and the accelerating pace of trading. Broadridge's OpsGPT's leverages GenAI to analyze transaction, settlement, and positions data from Broadridge's multi-asset post-trade systems to deliver real-time visibility, faster fails resolution, and the prioritization of key risk items. Beyond the immediate benefits of accelerated settlement, GenAI enables improved compliance and risk mitigation. We especially like the built-in compliance layer, and the approach to minimizing hallucination through ?through advanced monitoring and predictive analytics, as well as more personalized customer support enabling organizations to future-proof operations as financial institutions continue to expand and diversify into new asses classes globally. ?We especially like the built-in compliance layer, and the approach to minimizing hallucination through retrieval of data only from trusted sources. This is a great start by Broadridge and we expect to continue to see the offerings and feature set evolve materially in this space as GenAI further matures. ?

Mastercard’s GenAI-powered fraud detection tool promises efficiency and better customer experience

?Mastercard has unveiled its latest innovation to fight credit card fraud—Decision Intelligence Pro, as shared with CNBC. This in-house-built GenAI-styled fraud detection tool can assess suspicious transactions in as less as 50 milliseconds. The architecture behind the tool (transformer model) is similar to language-based models but instead of predicting (aka generating) language based on certain inputs, the tool predicts customer actions with the prompt being user’s history of transactions with this merchant. The expected action and actual action is then given a score with a lower score being out of pattern and hence indicating fraud. ?Mastercard estimates this will improve fraud detection rates on average by 20%. With over 125 billion transactions passing through Mastercard's network annually, this tool could have a significant impact on bolstering security and customer confidence. Great going Mastercard! We are absolutely loving the innovative take of applying the transformer model and using the underlying GenAI technology in this manner.

Customers are concerned about Banks using GenAI – mitigation approaches like Responsible AI are key to win their trust?

FIS, a global leader in financial services technology, conducted consumer research and surveyed how much UK consumers understand and trust GenAI to gauge their attitudes towards the technology’s increasing role in banking. According to their Trust in Generative AI research, a shocking 30% of UK consumers do not trust GenAI. What is even more concerning is that half of the surveyed respondents expressed that they have some level of discomfort with their bank using GenAI, with an alarming 25% of consumers stating that they would consider leaving their bank if they knew GenAI was being utilized. However, the survey results also shared a glimmer of hope – consumers had a willingness to learn more, despite concerns around transparency in how data is used.

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As we look at consumers’ lack of understanding and trust related to Gen AI, it is important to understand who is leading the charge to change this narrative. In Davos, during the World Economic Forum, leaders of the AI Governance Alliance met to do just that. Leadership from Accenture, IBM Consulting and the World Economic Forum met to discuss the rapid expansion and implementation of generative AI, and the inherent ethical and social concerns that come with it. They discussed how building trust in GenAI is not only a technology challenge; it demands a cultural shift within banking institutions.

To harness the full power of GenAI while building trust with stakeholders, we recommend several key steps. Together with their risk and technology peers, COOs must take a proactive stance in shaping responsible AI practices within their organizations. Their active participation in crafting robust AI governance policies and strategies must be a priority, including establishing ownership across their organizations, advocating for ethical principles, establishing transparent communication channels, and ensuring ongoing training and awareness programs for employees. The team must also take a deep look into the bank’s current GenAI landscape, carefully identifying all applications and judging their potential risks and benefits to prioritize specific areas for improvement and tailor a targeted governance plan. Finally, the team should leverage the valuable resources offered by the AI Governance Alliance. By actively engaging with this global initiative, leaders can gain valuable insights from best practices and real-world experiences of other organizations around the world, accelerating their journey towards responsible AI implementation. At Accenture, we have built and are constantly refining our Responsible AI Framework. We hope this will help accelerate your journey to Responsible AI.

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As always, we hope you enjoyed this issue and are as excited as we are about the prospects of GenAI in Banking. This edition is just the tip of the iceberg. Stay tuned for insights, industry intel, and practical navigation tools as explore the future of GenAI in Banking together!

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#GenAI #COO #BankingOps #Innovation #ArtificialIntelligence #BankingTechnology #Banking #Transformation #Operations

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This issue of the newsletter is brought to you by Accenture’s Rajat Dev | Nazat Dowla | Francesco Erriquez |Ashley Iu | George Heathcote | Ian Jacobs | Donrick Sanderson II | Sebastian Cadillo