This year, generative artificial intelligence (GenAI) has taken the spotlight in banking IT, outshining fintech. Unlike fintech, which is more of a movement than just a technology, AI is shaping the next phase of this evolution, and GenAI is at the center of those conversations.
According to Accenture’s research last year, GenAI will play a crucial role in enterprises over the next decade, especially in the finance sector. For example, Wells Fargo, managing $1.9 trillion in assets, is utilizing business automation software and AI to assist customers in handling estates after a loss.
On the reinsurance front, Munich Re anticipates a growing need for AI insurance as businesses increasingly adopt AI and seek ways to mitigate its risks. They aim to provide organizations with a safety net to navigate these challenges.
Just a few years back, the instances of AI’s application were scarce. Now, as businesses gain a better grasp of the technology, use cases are popping up everywhere. In contrast, quantum computing remains a puzzle for many. While it holds the potential to revolutionize industries, explaining it often feels like trying to sell sand in the Sahara. UK Finance, the banking industry’s trade group, urges banks to catch up on quantum tech, which, despite being mostly theoretical, is drawing significant attention.
Amid all the buzz around quantum and GenAI, banks have plenty of work left to fully leverage these innovations. For instance, Admiral Insurance and Nationwide Building Society are taking steps to integrate these technologies effectively.
Here are some of the top financial services stories for 2024:
– Wells Fargo is gaining customers by using automation and AI to help manage estates after bereavements.
– UK Finance recommends that banks establish a quantum computing task force to stay ahead.
– A paytech system in the Middle East lost backing due to ties with Russian sanctions evasion.
– Members of the House of Lords are advocating for amendments to the Data Protection and Digital Information Bill, raising concerns about government surveillance of benefit recipients’ bank accounts.
– Silicon Valley Bank, focused on tech startups, found itself unprepared for a bank run as cash burn increased among its clients.
– Munich Re expects a surge in demand for AI insurance as companies experiment more with AI tech.
– Admiral has partnered with Google for cloud services to enhance its operations and customer experience.
– The data chief at Admiral emphasizes using data for better insights and promoting diversity in data leadership.
– Andrew Phillips, CTO at LMAX Group for 17 years, notes that his budget works in nanoseconds.
– Nationwide Building Society continues its digital transformation with assistance from HPE GreenLake for its hybrid cloud goals.