How is AI revolutionizing the financial sector?

Artificial Intelligence (AI) is already making waves across various industries and the banking sector is no exception. Financial institutions have the opportunity to harness this technology to drive innovation, optimize operations and enhance customer experiences. However, adopting AI also brings certain challenges that need to be addressed.

At the panel discussion “Artificial Intelligence: Opportunities and Challenges for Enhancing the Participatory Dimension of Cooperatives,” held at Syncoop 2024, an event hosted by FENASBAC, our VP of Innovation and Strategy, Caroline Capitani, shared valuable insights on how AI is impacting the sector. The conversation was moderated by FENASBAC’s Director of Innovation, Rodrigoh Henriques, and Daniel Stivelberg, Nubank’s Data Protection Officer (DPO), was also a panelist.

Key topics included the use of AI to personalize customer service, making it faster and more secure, as well as process automation, which is elevating corporate governance with real-time decision-making and risk monitoring.

Opportunities for AI Adoption in the Financial Sector:

• Optimized Customer Service: Chatbots and virtual assistants can provide 24/7 customer support, answering frequently asked questions, resolving simple issues and freeing up human agents to handle more complex cases. This improves accessibility and responsiveness, offering a more satisfying customer experience.
• Service Personalization: AI can analyze data to recommend personalized products and offers, creating a more relevant experience and addressing individual customer needs. Data-driven credit analysis also speeds up loan approvals, making services more efficient.
• Enhanced Security: AI plays a key role in real-time fraud detection and biometric authentication, protecting institutions and their customers from growing threats. According to the Public Safety Yearbook (2024), banking fraud has risen by 65.2%, underscoring the critical importance of AI in this area.
• Efficient Governance: AI automates processes and reports, bringing greater accuracy and speed to compliance and risk reporting. AI-powered risk management platforms monitor risks in real-time, aiding strategic decision-making.

But what about the challenges?

Professionals need to be trained and adapted, understanding the basics of AI, its applications in the financial sector and its impacts on business and society.

• Data Analysis and Critical Thinking: AI relies on data and professionals must be able to analyze large datasets, identify patterns and trends, and make strategic decisions based on insights.
• Digital and Technological Skills: Professionals must be familiar with AI tools and platforms, as well as other relevant technologies such as cloud computing and blockchain.
• Adaptability and Continuous Learning: The financial sector is constantly evolving and professionals must be adaptable, willing to learn new technologies and stay updated with market trends.
• Communication and Interpersonal Skills: AI will not fully replace human interaction. Professionals must be able to communicate effectively, build relationships and collaborate with colleagues and clients.

The 2024 Febraban Banking Technology Survey shows that banks using AI saw an 11% increase in internal process efficiency. Additionally, a study by the IBM Institute for Business Value (IBV) indicates that over 86% of global banking organizations are developing or preparing to operate with generative AI. These findings highlight AI’s potential to boost efficiency and competitiveness in the financial sector.

Financial institutions that invest in professional development, integrate AI into their systems and implement ethical and responsible practices will be better positioned to seize opportunities and overcome challenges, driving growth, customer experience and long-term sustainability.