Still early days for AI in financial services, finds new research
Exclusive data from Kin + Carta, the global transformation consultancy, has revealed that the majority of financial services institutions are still only dipping their toes into the water when it comes to deploying generative AI.
Only one in seven (14%) believe that AI is currently baked into their corporate strategy, while just over a quarter of institutions (26%) admit that they’re at the very early stages of exploring use cases.
Meanwhile, although nearly half (43%) have a small number of proof-of-concept (POC) projects in development, only around one in six (17%) say they currently have key AI initiatives in production.
While there is a clear surge of interest in GenAI adoption within banks, primarily focused on internal efficiency gains, there’s no question that financial services as a sector faces unique challenges, not least regulatory and ethical as well as the obvious one of security.
The findings highlight that now is the time for financial services to start meaningfully thinking about their AI strategy to deliver more personalised financial experiences and thus avoid missing out on early adoption advantage.
The survey was conducted among 70 senior leaders from the UK’s largest financial services brands at the recent FWD24 summit hosted by Kin + Carta, whose clients in the space include Santander and Skipton Building Society.
Taking place in London (as well as a US-focused event in New York), the FWD24 event explored how financial services leaders can unleash impactful innovation by practising targeted, outcome-driven digital transformation in areas ranging from GenAI to data to hyper-personalisation.
Phillip O’Neill, director of financial services (Europe) at Kin + Carta,said: “Given the critical role banks play in our societies, a cautious approach that prioritises internal efficiencies over customer-facing applications is understandable. Several operational hurdles also exist to these projects, not least that data remains siloed across various systems.
“Most importantly, GenAI shouldn’t be implemented simply because it’s available. Financial services institutions must prioritise their strategic goals and desired outcomes, then explore how GenAI can contribute as a solution, rather than letting the technology define the problem. And this means fostering partnerships and an environment in which AI pioneers can innovate while still adhering to regulatory frameworks.
“What’s clear is that GenAI holds significant value for the customer journey. It’s a thrilling time to be working at the intersection of financial services and technology, unlocking the potential of GenAI.”
