In the rapidly evolving landscape of banking technology, it is more important than ever for banking institutions to maintain compliance and competitiveness. Generative AI has emerged as a double-edged sword, ushering in both empowerment and challenges in the realm of security. As we stand on the brink of 2024, the integration of Generative AI promises a seismic shift in the banking landscape, presenting both opportunities and challenges that demand the attention of banking technologists and enthusiasts alike. AI will
be the main driver behind these paradigm transformations, which will include reframing financial management tools, streamlining back-office activities, and revolutionising customer service.
The Power Play of Generative AI:
Generative AI, with its ability to foster extreme interconnections and solve complex problems, is set to redefine customer experiences in banking. According to a McKinsey Global Institute report, Generative AI could add a substantial $200 billion to $340 billion annually to the banking industry. This is a testament to its potential to revolutionise the way we do business, enhancing productivity and profitability across various sectors. The democratisation of Generative AI is on the horizon, paving the way for a connected
workforce and collaborative success. Industry Cloud Platforms and intelligent applications are set to become the bedrock of seamless banking experiences.
India’s Role in Digital Advancements:
In this era of exciting possibilities, India’s role in digital advancements becomes pivotal. With the rise of Global Capability Centres (GCCs) supporting sustainability, India’s domain knowledge extends globally. Also, GCCs are often established by multinational corporations that seek to capitalise on India’s vast talent pool and strategic geographical location and serve as innovation hubs, fostering the development and implementation of cutting-edge technologies. With a focus on Generative AI, these centres play a crucial role in enhancing product development, optimising business processes, and refining customer experiences.
This synergy between GCCs and Generative AI not only fortifies India’s position in the global digital landscape but also positions the country as a hub for innovation and technological leadership. As we navigate the transformative potential of Generative AI, the Indian industry must strike the right balance, leveraging innovation while ensuring robust security measures. Based on an industry report by EY, India’s economy stands to gain $1.2-1.5 trillion in economic benefits over the next seven years from the application of generative AI, which promises considerable disruption and innovation. The report also adds that India may add an extra $359–438 billion to its GDP in the fiscal year 2029–2030 if the country makes full use of Gen AI technology across various sectors.
The security tightrope:
However, with great power comes great responsibility. The interconnectedness facilitated by Generative AI introduces challenges in maintaining transactional friction and demands heightened vigilance against emerging risks. As global AI expenditure is projected to reach $166 billion by 2023, the focus on AI Trust, Risk, and Security Management (AI TRiSM) becomes paramount. The surge in investment in cloud infrastructure, exceeding $1 trillion in 2024, highlights the critical role of security and data protection in this digital transformation.
Looking ahead:
As we venture into 2024, the implementation of Generative AI promises a connected workforce and the unlocking of creative potential for collaborative success. Industry cloud platforms and intelligent applications will serve as the bedrock for seamless banking experiences. However, the experimentation with Generative AI in strategic initiatives requires cautious optimism and mature use cases with low-risk applications. Being a banking technologist in this era requires a delicate balance between innovation and security. The future is filled with possibilities, and the banking industry must rise to the occasion, leveraging the power of Generative AI while safeguarding the foundations of security.
About the Author
Muralee helms the creation of productized solutions that enable industry-leading CXOs to solve complex challenges across CX, Digital Ops, Connected Core, and Regulatory Compliance. Envisioning Maveric as a global brand specializing in Data and Analytics, Muralee’s efforts strongly influence the organization’s deep inroads into leading global banks and forging relevant partnerships with innovative digital, banking, and data platforms.
Originally published in Express computers
