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Banking’s Generative AI Future | Part 2 | Mambu’s Banking Insights for Growth

‘AI will create an explosion of new jobs in banking.’

Our Banking Insights for Growth series continues with the second part of our conversation on AI in banking.

In partnership with Mambu, we spoke to experts Richard Kalas, Kamalesh Rangasayee, Annette Harris and Kerim Bertrand to explore the practicalities that come with AI adoption.

We explore a number of important topics, such as the legal frameworks surrounding AI and the need to develop privacy and security measures to gain the trust of consumers.

Avoiding the trap of AI hype is also mentioned but there’s plenty of positives! From accelerating cloud adoption to improving customer experience there’s much to get excited about.

And that’s not all! Anyone wanting more insight on this topic will be well served by Mambu’s own 6-step insider checklist of considerations for any financial institution planning or thinking about an AI transformation within their organisation. Based on insights from this very interview it’s a definitive resource that will help guide important decisions in this area. Head to their website to read the full thing.

Cloud computing acceleration and security

Our experts had plenty to say on the topic of AI in banking. In the video above we get more thoughts on how to actually implement AI in your organisation.

Bertrand begins by reflecting on how for the past decade, the big area of transformation was in cloud computing. Security concerns were a significant part of the discussions around this technology and were a key area where banks needed to be convinced. Now, Bertrand sees AI as a key enabler for accelerating the transition to cloud computing for banks, highlighting the synergy between both technologies.

And on security, there may be benefits too. Rangasayee, ever the security evangelist, emphasised the role of AI in fraud prevention and mentions an interesting use case: creating AI models within a company’s security operations. Adversarial models can be created to mimic attacks, thereby improving a bank’s security readiness.

Other benefits of Generative AI

Of course, we’re keen to know what other benefits are available to consumers in particular. On this, Kalas introduced the concept of Gen AI summarising the salient points of terms and conditions for customers, potentially revolutionising trust in a time where these are often glossed over, while also maintaining legal requirements.

A lot of work is needed to get here though and Rangasayee stressed the substantial investment required to build effective AI models, comparing AI to an untrained intern that needs considerable effort and training to become useful. He reiterated the importance of proper governance, linking it back to the notion of responsible AI, mentioned in Part 1, which is crucial for its effective use within an organisation.

Kalas added that for AI to achieve wider consumer adoption, it must gain trust, demonstrate benefits, and ensure privacy and security. These factors are essential for AI to become more prevalent. He acknowledged the limitations of AI and pointed out that younger generations are more willing to share their data and engage with Gen AI. However, there are inherent risks with this and a responsibility from institutions like banks to protect customers’ data.

An explosion of new jobs

The conversation also touched on the impact of AI on the job market. Kalas predicted an explosion of new job roles as AI becomes more integrated into business processes. Bertrand, however, warns against the hype surrounding AI, noting that everyone claims to be working with AI in some capacity. He advised trusting well-established companies that are genuinely innovating in this field and cautioned against rushing to implement AI solutions without proper development and customer experience enhancement.

Ultimately AI is not a silver bullet and Bertrand also underscored the importance of focusing on improving customer experience as the primary goal. The panel agreed that while AI offers significant potential, it must be approached with caution, responsibility, and a clear focus on customer benefits.

We hope you enjoyed this deep dive on AI. Be sure to catch Part 1 here and stay tuned for more content from Mambu, coming soon.

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