Bits In Glass’ Post

🌟 Industry Update: Scaling Gen AI in Banking 🌟 Generative AI (gen AI) is revolutionizing the banking industry, enhancing efficiency and innovation. McKinsey’s latest article highlights how choosing the right operating model is crucial for banks to unlock AI's potential. Centralized models currently lead in effectiveness, offering streamlined decision-making and risk management. Read more about the key operating models and how they shape the future of banking: [McKinsey Article](https://buff.ly/3JdbEDX) #Banking #Insurance #GenAI #DigitalTransformation #IndustryNews

With Artificial Intelligence, banks can drastically reduce the time needed for project analysis, system testing, and business analysis, which often account for nearly 70% of a bank’s investment in modernisation initiatives. By employing AI to handle the repetitive and time-consuming aspects of payment infrastructure upgrades, financial institutions can cut costs while maintaining or even accelerating project timelines. AI’s ability to process and analyse vast amounts of data in real time enables banks to better anticipate and respond to market demands, regulatory changes, and fraud risks. #payments https://lnkd.in/dZewMiiw

𝗧𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗶𝗻𝗴 𝗕𝗮𝗻𝗸𝗶𝗻𝗴: 𝗔 𝗖𝗮𝘀𝗲 𝗦𝘁𝘂𝗱𝘆 𝗶𝗻 𝗜𝗻𝘁𝗲𝗹𝗹𝗶𝗴𝗲𝗻𝘁 𝗗𝗲𝗰𝗶𝘀𝗶𝗼𝗻-𝗠𝗮𝗸𝗶𝗻𝗴 Dive into our latest article where we unravel the journey of a leading global bank that revolutionized its operations by harnessing the power of intelligent systems. Learn how they conquered the tidal wave of transactional challenges with swift, data-driven decision-making. Key Highlights: • Mastering a 700 million daily transactions volume • Achieving a mere 10 ms response time for decision-making • Handling 200,000 transactions per second with unparalleled precision Discover how strategic advancements in risk management and a future-focused outlook are setting new benchmarks in the banking industry. #TrustDecision #BankingInnovation #RiskManagement #AI #Fintech #DigitalTransformation

Excited to share my latest article on the transformative impact of AI and fintech on the banking industry! Discover how these innovations are reshaping financial services and driving unprecedented change. Check it out here: https://lnkd.in/d-2Qi2yX

AI in Banking Supervision? "Banks are increasingly finding that, in order to remain competitive, they must embrace AI while delivering on their risk management responsibilities." "[Supervisors] should use it to enhance our internal supervisory capabilities and gain greater insights into the risks facing supervised banks as they, in turn, also deploy #AI."

"...the big challenge for banks in the months and years ahead is how to deliver material outcomes from their spending on tech, including #AI. That means not just delivering products on time and on budget, but to do so in a way that gets measurable value out of it—by generating revenue, taking out cost, or tangibly improving risk management, among other benefits." McKinsey & Company's Ido Segev and Vik Sohoni discuss why capturing value from technology and AI requires taking actions beyond just those domains. https://lnkd.in/ebEY6PN5 #financialservices #cx #fintech

As the financial services sector undergoes profound transformation, banks like Standard Chartered are pivotal in bridging traditional services with the demands of a digital-first world. The focus on full-digitization, effective AI use, and rigorous data management exemplifies a comprehensive approach to maintaining stability and driving sustainable growth. https://lnkd.in/d6DNiUzQ

Our latest article on Emerging Generative AI in Banking and Financial Services is a must-read! Discover how these innovations are transforming the industry and paving the way for revolutionary changes in our work. Dive in and explore the future with us! #AI #BankingInnovation #FinTech

Great speech by the Chair of the Basel Committee on Banking Supervision Pablo de Cos yesterday at the IIF on use of AI in banking. We are increasingly seeing regulatory recognition of AI benefits for the industry. He cites AI/ML potential to improving client experience, risk management (AML monitoring, for example), and operational efficiency via broader data processing and pattern recognition capabilities. On the same tune sang by the broader regulatory community, de Cos highlights concerns on interpretability and bias of these models, data management governance and consequent high reliance on historical patterns, and contagion effect due to the dependency on small number of third-party providers of foundation models. On the back of these concerns, there is a stark message about the importance supervisors put on human judgement in bank's governance structures and risk management at large. Recommended reading. https://lnkd.in/enSn_Hic

The McKinsey Global Institute (MGI) projects significant potential for gen AI in the global banking sector, estimating an annual value addition between $200 billion and $340 billion. When it comes to selecting an operating model, it's not a straightforward decision. Financial institutions can leverage insights from the article linked below to determine the optimal level of centralization for different components of their gen AI operating model. This tailored approach allows organizations to align with their unique structure and culture. Read more about scaling gen AI in banking and choosing the best operating model here: https://lnkd.in/dDdHgcAS