Making online chats more real – Banking & Finance News

By Nachiket Deshpande
The financial technology (fintech) sector is undergoing a significant transformation. We are witnessing an extraordinary metamorphosis, propelled by the swift progression of AI. Herein, GenAI is emerging as a pioneering catalyst, reshaping the landscape of customer interactions and operational processes in fintech.
Goldman Sachs projections shed light on the transformative potential of GenAI, which anticipates a staggering 7% boost in global GDP—equivalent to a staggering $7 trillion—over the next decade. In the competitive fintech landscape, providing a superior tech experience is what sets these companies apart from traditional banks. GenAI is at the forefront of this transformation, enhancing customer service in two significant ways—by improving self-service chatbots and empowering customer service representatives. Here are five areas where fintechs are applying GenAI for an elevated customer experience.
Voice AI support: By deploying AI-powered chatbots, GenAI can deliver instant, accurate, and personalised customer assistance. Unlike traditional chat, GenAI-supported interfaces continuously pull from fresh customer data, learn from past interactions, and engage with individuals in contextual ways.
Amplifying financial advisory: Fintech firms have found a niche in accessible, real-time, and inexpensive financial advisory solutions. GenAI is aiding this by dissecting the financial data, individual’s financial behaviours, pinpointing crucial trends, and converting these findings into comprehensible narratives. This approach enables individuals to make educated financial choices. Many of the large financial institutions are embracing these solutions to reduce the workload of the wealth advisors.
Personalised marketing: In the fintech marketing landscape, GenAI is being utilised to devise personalised marketing plans. Fintech companies, by filling certain gaps in the financial services sector, are serving specialised customer groups. Their digital marketing communications help them connect with individuals who are looking to fulfil a specific requirement.
Enhancing customer safety: Customers are expressing their preference for the superior technology-driven security offered by fintech companies as compared to traditional banks. GenAI employs advanced AI algorithms to fortify fintech platforms, enabling real-time detection of anomalies and potential fraud attempts.
Assessing credit risk: GenAI is revolutionising risk assessment solutions in fintech by enhancing traditional AI methods. In the early stages, GenAI identifies customers likely to miss their first payment and those who can self-cure without collection efforts. For late-stage assessments, it predicts payment amounts and loss forecasts based on recovery rates and delinquency stages.
GenAI is changing things in a big way. But the ones who will really stand out are those who can use it safely and responsibly. With new AI rules coming into play, especially in the strict world of banking and finance, it’s going to be interesting to see how fintech companies handle this change.
The writer is whole-time director & COO, LTIMindtree.
Disclaimer: Views expressed are personal and do not reflect the official position or policy of FinancialExpress.com. Reproducing this content without permission is prohibited.
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