AI will be a game-changer in banking and finance

AI, including both traditional AI and GenAI, brings numerous benefits to the banking industry. It helps banks enhance performance and optimise costs by automating processes and efficiently analysing data, allowing banks to make accurate and timely business decisions.

Le Nhan Tam, chief technology officer Microsoft Vietnam

It also helps improve customer experience by providing personalised services based on consumer behaviour analysis and transaction history. Additionally, AI plays a crucial role in detecting and preventing fraud, safeguarding the financial security of customers and banks.

FWD Group was among the early adopters of GenAI in Hong Kong, leveraging data analytics and AI to streamline processes and enhance efficiency across the insurance journey, including sales, underwriting, claims, actuarial, finance, and more. OCBC, Singapore’s second-biggest bank by assets, has rolled out a GenAI chatbot to help boost productivity for more than 30,000 global employees. The results speak volumes, with an impressive 72 per cent reporting significant improvements in day-to-day productivity.

However, deployment in terms of timing and manner remains a challenge for many financial institutions in Vietnam. While some hesitate to adopt it too early, others are uncertain about the capabilities it might offer or worry that they lack the appropriate.

We advise our clients to adhere to the 3P model: people, process, and platform. Among these, people are the priority, meaning we must have a correct understanding of the benefits that tech brings and equip ourselves with the knowledge to use technology safely. Next, we need appropriate processes and operating mechanisms to maximise the effectiveness of AI as well as control it to ensure that it is used safely, does not go off track, and operates without errors.

Finally, we need a suitable technology platform to implement it. This is what businesses in general, and financial institutions in particular, need to focus on – investing in people, building optimal processes, and then equipping with technology.

When implementing AI strategies for enterprise customers, we approach it in what we call the “room of the house” method, ensuring that every department and business unit within an organisation can effectively access and adopt AI, emphasising the importance of a holistic and comprehensive transformation throughout the entire organisation. When a bank aims to undergo digital transformation, it cannot be done in just one or a few rooms; it must be carried out comprehensively.

For example, directors face making strategic decisions based on disparate data from multiple departments, making it difficult to predict risks and seize market opportunities. To address this issue, Microsoft has implemented a real-time dashboard system using Microsoft Power BI and Azure Synapse Analytics, which consolidates data from various departments and facilitates…