Blog FinTech and GenAI–how to create customer value and innovate

What do FinTech and financial services companies most want from cloud-based innovations, including generative AI? My work at Insight has me consulting with FinTech and financial services companies that want to stay competitive with cloud technologies without sacrificing the security, ease, and reliability their customers expect and deserve. In this blog post, I’m going to put myself in the shoes of financial companies and organizations that are looking to integrate FinTech and AI into existing workflows.

The security-conscious financial services industry faces some pivotal questions as it navigates the adoption of large language models (LLMs). While these models offer exciting possibilities, their potential for unreliable output raises concerns in a sector where accuracy and trust are paramount. Let’s dive into this complex issue and explore the potential impact of LLMs on the financial services landscape.

Where to start with GenAI for FinTech

Every successful FinServ company meets customers where they are. Today, that means contending with the rise of generative AI, the rapid-growth sector of the technology industry that’s putting the power of content generation, coding, and complex data analysis in the hands of anyone with a smartphone, tablet, or laptop. 

GenAI for FinTech and FinServ often comes down to using it as a tool to market your services to your customers. Whether that means targeted email campaigns, web copy, short-form video, or image generation, the tools at your disposal are beginning to grow within the context of the platforms you already depend upon. 

Of course, GenAI is just the latest, most eye-catching aspect of artificial intelligence that’s transforming financial institutions. It’s worth keeping in mind that artificial intelligence has a track record in the financial sector, including analyzing customer data, fraud detection, predictive analytics, and supporting virtual assistants. Artificial intelligence technologies are present in banking apps that identify market trends and use data analytics to provide more accurate risk assessments. GenAI in the financial technology sector represents just the latest advance in delivering customer satisfaction.

Using GenAI as a productivity & collaboration booster 

Gemini for Google Workspace provides powerful new capabilities when you work in Docs, Sheets, Slides, or Meet. Insight AI experts have been working with customers to deploy custom solutions using Vertex AI for enterprise-level database applications. Initiatives that range in scope from accelerating and automating workflows to entirely new applications tied to Google Workspace that enable faster, safer, more compliant decision-making GenAI is proving to be a game changer as it helps summarize meeting notes, email chains, or text threads, offering convenience in every industry, not just financial services. 

Developing a strategy that makes the most of Gemini for Google Workspace starts with establishing partnerships with experts who are adept at separating the signal from the noise. When you engage Insight’s team of GenAI experts to develop an AI strategy for your business, you get a deep bench of FinServ and FinTech expertise–including a laser focus on your regulatory ecosystem and security requirements. It’s all about finding a natural entry point for GenAI within the context of your industry’s stringent expectations.

Understanding the innovation landscape: FinTech and GenAI

A Venn diagram that includes both AI innovation and companies that are responsible for their customers’ money does, in fact, exist. It’s no news that financial institutions and FinTech companies operate in a highly regulated and complex industry. Companies are up against an array of challenges, including:

• Regulatory compliance. The financial industry is subject to strict regulations, which can make it difficult for companies to innovate quickly and efficiently. The mere mention of GenAI might raise red flags, but it doesn’t have to. Just as mobile banking brought the power of moving money to every smartphone, GenAI will continue to find points of integration with money management. The key is to do it right. Staying current with the regulatory environment is the starting point. 
• Legacy systems. Many financial services and FinTech companies rely on systems that are not necessarily designed for the digital age. This can make it difficult to adopt new technologies and processes. This industry can move slowly, and with good reason. But there is a way to maintain the integrity of legacy systems as your organization evolves and meets customers where they are. 
• Competition. The financial industry has both traditional banks and new FinTech startups vying for market share. This means that companies need to constantly innovate to stay ahead of the curve. The question is how to identify which innovations are worth adopting and which are distractions. A discerning approach to integrating new AI-driven solutions is key to achieving cost-effective outcomes. 

Having stated the obvious, it’s also true that…

Financial services and FinTech companies do, in fact, innovate

If financial services companies had simply dug in their heels and resisted any innovations beyond double-entry bookkeeping, they simply wouldn’t exist today. GenAI represents the latest technology that companies must assess and deploy in ways that make sense to their core business functions. 

As with AI, maintaining value for customers as they adopt increasingly sophisticated devices and platforms means judiciously embracing advances. The leaders of these industries understand that they must stay current with technology, including:

• The evolution of digital technologies. Artificial intelligence, machine learning, and blockchain are here to stay and are already transforming the financial industry. These technologies can help companies enhance customer service, reduce costs, and create new products and services. Customers are eager to embrace solutions that will help them with portfolio management, credit scoring, executing trades, and more.
• The changing customer landscape. Mobile, always connected, and always on the go, customers demand digital-first experiences from their financial providers. This creates a need for companies to level-up their customer-facing offerings with the conveniences we’ve come to expect from other industries, like retail. Using AI to create operational efficiency and analyze vast amounts of data represents increased customer value.
• The emergence of new business models. Open banking and embedded finance are creating new opportunities for innovation in financial services. Financial institutions are finding new ways to provide personalized financial advice and enhance the customer experience with a new breed of apps and services, including AI-powered chatbots and AI systems that adapt to user behavior.

The role of partnerships in building innovation engines

Building an innovation engine within your company is a complex and challenging undertaking. It requires a combination of technology, expertise, and resources. For many financial services and FinTech companies, partnering with a trusted technology provider like Insight is a smart strategy.

A number of companies within the FinTech and FinServ space (Questrade, for example) have tapped Insight’s expertise to identify their innovation goals, develop a strategy, and select the right technologies to achieve business outcomes. Insight’s change management services are designed to accommodate every organization’s unique challenges, and ongoing Flex Services are designed to maintain and improve systems post-deployment.

Leveraging the cloud for innovation

With a track record of flawless deployments for the finance industry, Insight’s security experts make it their business to fully comprehend the powerful, built-in security features of Google Cloud Platform and the growing complexity of attacks that target organizations in every industry. 

Google Cloud has become essential for innovation in financial services and FinTech. Cloud platforms offer a number of advantages, including:

• Security: Robust security features protect data, applications, and your customers. This is essential for financial services and FinTech companies, which are subject to strict regulatory compliance requirements.
• Scalability: Cloud platforms can easily scale to meet the changing needs of businesses. This is especially important for companies that are experiencing or expecting rapid growth.
• Flexibility: Cloud platforms offer a wide range of services that can be used to build and deploy innovative applications. This allows companies to experiment with new technologies and business models.

The time is right to tap into Insight’s extensive experience in helping FinTech and FinServ companies leverage Google Cloud for innovation. Migrate your existing applications to the cloud, develop new cloud-native applications, and integrate with third-party cloud services. Achieving your most ambitious business outcomes in a manner that’s secure, scalable, and flexible puts you on solid footing for innovation and growth.

Establishing a culture of innovation and managing change with AI

GenAI for FinTech and FinServ is promising to say the least. As with all transformative new technologies, the big question comes down to whether your organization has the capacity to absorb a rapidly evolving set of new capabilities. Does your company culture encourage employees to come up with new ideas and take those ideas seriously? For most, fostering a pro-innovation culture is easier said than done. Innovation by nature is disruptive, and disruptions would appear to get in the way of executing established plans. 

Innovation flourishes when it is a reflexive reaction to changing conditions. One way to spark innovation is to simply introduce new tools into a workflow. The introduction of Google Gemini into Google Workspace has simplified activities that would have previously taken a lot of time and iteration while expanding the opportunities to commit more time to neglected stages of workflows. 

For instance, content development may have previously involved multiple brainstorming sessions with myriad stakeholders. With GenAI, you can submit a prompt to generate lists of ideas for content within seconds. Your content team then has more time to commit to assessing and elaborating upon the ideas that GenAI helped produce. This gives your team the chance to flex different creative muscles, providing the conditions for innovation.

It’s a lot to manage, I know. Fortunately, Insight’s Change Management experts have developed practices designed to encourage buy-in, with a thoughtful approach to adoption and implementation that taps into the talent of your team. 

Making the case for GenAI at your FinServ or FinTech business

I imagine that if you’re reading this post, you already understand the powerful, disruptive potential of GenAI. Making a case for adopting it within your organization can be a challenge. I’d like to conclude this post with three data points you can refer to in any meeting with decision makers at your company when you’re discussing the need to develop a GenAI strategy. When you head into your next meeting to discuss GenAI, consider asking: 

1. How can Generative AI address our specific business challenges and enhance customer value?
2. What are the ethical and regulatory implications of implementing generative AI in our ecosystem?
3. How should we prepare our organization and workforce for the integration of Generative AI?

Unlock your AI potential with Insight’s free generative AI assessment

The time is right for your organization to embark on your AI journey today with Insight’s free Generative AI Readiness Assessment. Insight experts will be happy to guide you through a comprehensive evaluation of your current capabilities and identify the most impactful AI solutions tailored to your unique needs. Sign up for a free assessment today to start on your AI journey.