In today’s markets, characterized by economic downturn and increasing regulatory requirements, the utilization of generative AI in banking has emerged as a groundbreaking solution.
Generative AI can automate data extraction, accelerate research and provide deeper insights, and automatically generate content. These processes are fundamental across numerous banking operations, from credit approval to pitchbook creation to due diligence and more. When deployed under a risk-controlled environment, generative AI can provide the capability for efficient, intelligent insights. Banks have the unique opportunity to use this technology to streamline their operations and accelerate decision-making.
How Can Banks Utilize Generative AI?
Below we’ve outlined 6 ways Generative AI could be used to improve productivity in banking.
1. Credit Approval
- Loan Applications: Generative AI-based chatbots can guide customers through the loan application process. Banks can also user generative AI to verify customer information by conducting a natural language conversation.
- Credit Analysis: Credit analysts can use generative AI to assess creditworthiness by analyzing customer credit scores and financial history. Additionally, It can measure the risk level of a loan application by examining data from various unstructured sources.
2. Loan Underwriting
Once borrowers are approved, loan underwriters can use generative AI to speed up the underwriting process. With generative AI, lenders can auto-generate sections of credit memos such the executive summary, business description, and sector analysis, and more.
3. Pitchbook Creation
Investment banking is a highly competitive, fast-paced industry in which banks need to get ahead to win deals. Pitchbooks are critical to winning business but they are extremely time-consuming. Junior bankers need to search through a multitude of unstructured internal and external sources, analyze data, and compile it into the correct formats. Generative AI can be used to gather, process, and summarize information in seconds and create draft reports to be used in the final product.
4. Marketing and Lead Generation:
Generative AI-based chatbots can interact with potential clients, gather information about their needs and preferences, and create personalized product recommendations.
5. Customer Service
Generative AI can assist with payment reminders, billing inquiries, and account management. It can also personalize recommendations for loan repayment based on a borrower’s financial history.
6. Debt Collection
Generative AI can also aid in debt collection efforts. It can interact with borrowers to provide repayment options, identify patterns of delinquency, and recommend appropriate collection strategies.
For more information on the potential of generative AI in banking and to learn about how Evalueserve is using generative AI, speak to an expert now.
