Empowering Financial Institutions in the Digital Era: How Generative AI is Reshaping Business Value and Customer Journeys



Gen AI has come a long way from being just a buzzword to offering business value quickly. It presents three distinct approaches to harness its transformative power: the consumer approach allows users to directly use prebuilt public models to generate desired results, the customized approach enables users to provide specific prompts or inputs for personalized outcomes, and the creator approach empowers users to train Gen AI with their own model and data for business-specific objectives.

Gen AI can be leveraged in almost every business function in the financial services space. Still, it significantly impacts revenue in segments such as operations, customer experience, legacy modernization, software development, sales and marketing, etc. It can significantly reduce the complexities associated with these segments, resulting in potential value generation for financial institutions.

In this blog post, we will explore how Generative AI adds value to financial institutions through these segments.

1) Transforming the Operational Landscape of Financial Institutions

From data-driven investment decisions and effective document management to real-time risk management and automated compliance, Generative AI is already transforming the front-, middle-, and back-office operations in financial institutions. Gen AI can significantly reduce the operational spend of financial institutions by automating all these major operational processes. For instance, in the case of document management, through automated data extraction and analysis to intelligent summarization and document version control, Gen AI reduces the time and effort required for data analysis and managing documents. In the case of regulatory compliance, Gen AI has the capability to aggregate and collate data within the company and automate the reporting process to the respective authorities, saving significant amounts of time and work for the operations team.

2) Revolutionizing the Customer Service Capabilities and Experience

Generative AI enables financial institutions to create highly personalized customer interactions. Gen AI-enabled chatbots and virtual assistants engage customers in real-time, understanding their requirements and providing tailored responses. Gen AI can also be trained to generate personalized client reports, providing insights into portfolio performance, clients’ progress toward financial goals, and market updates. This level of personalization and engagement enhances client satisfaction and further strengthens client relationships. Gen AI can also streamline the entire customer onboarding process, reducing manual paperwork through automated identity verification and account setup, leading to a positive first impression and customer retention.

3) Transforming Legacy Systems for Enhanced Efficiency and Scalability

Legacy systems have been the backbone of many financial institutions for decades, but these systems often lack the potential for scalability and innovation. Gen AI is enabling financial institutions to modernize these legacy systems through automated code refactoring and optimization. Gen AI has the capability to analyze millions of lines of code, identify inefficiencies, and automatically rewrite them for improved performance and enhanced system reliability. Gen AI also enables intelligent data mapping, cleansing, and integration across different legacy systems and platforms, ensuring smooth and seamless data transfer during migration.

4) Enabling Advanced Software Product Development and Technology Advancements

Generative AI’s ability to analyze vast datasets, learn patterns, and generate code autonomously is reshaping software development in financial institutions. AI models trained on extensive code repositories can generate code snippets, templates, and even entire modules for specific tasks, freeing up developers and helping financial institutions to optimize their resources and costs by reducing human errors, bugs, or technical debt. Automated code generation also expedites innovation and experimentation in the sector adding new technological advancements and functionalities faster and reducing the time to market new products and services.

5) Transforming Sales and Marketing for Enhanced Revenue Growth

Generative AI has the capability to develop customized and personalized marketing campaigns, content, and collaterals based on the product or market segment information given. Gen AI can analyze the client’s behavior and preferences in detail and considerably help the nurturing process, enhancing sales and revenue growth for financial services firms. Also, Gen AI-powered chatbots and virtual assistants can engage with customers in real time, providing personalized recommendations, answering queries, and resolving issues, leading to increased customer satisfaction and revenue generation.

In addition to the above-mentioned broader areas, Gen AI can also be leveraged in developing domain-specific point solutions across the segments like asset management, wealth management, custody business, etc. One such example is harnessing the potential of Gen AI for model portfolio generation for asset managers. Considering factors like risk tolerance, investment objectives, market conditions, and historical fund performance, Gen AI can create a more diversified and risk-adjusted portfolio model aligned with the client’s unique financial goals. In the asset servicing and custody business, Gen AI can be leveraged to streamline the trade settlement and clearing processes by automating repetitive tasks and by identifying and resolving discrepancies in trade data, ensuring seamless settlement and reducing settlement times. Generative AI can also enable wealth managers and advisors to offer personalized client services. AI-powered systems can analyze client preferences, investment histories, and risk appetites to deliver tailored investment advice to clients.


Generative AI is proving to be a game-changer in the financial services industry. In the coming years, Gen AI will significantly reduce the cost and operational spend of financial institutions through automation and also enable enhanced customer experience, paving the way for a future where every customer interaction is tailored, efficient, and memorable. Also, through accelerated code generation and software development, we would see a profound increase in productivity and efficiency for financial institutions as leveraging AI can allow their workforce to focus on bringing more innovative solutions. Furthermore, the journey of Generative AI in improving sales and marketing has just begun, and the future holds tremendous potential for businesses to drive customer engagement, increase conversions, and achieve sustained growth through innovative AI-powered strategies. As Gen AI further evolves, we will see more sophisticated uses of Gen AI in the financial services space. The players that embrace these advancements responsibly will gain a early mover advantage, delivering innovative solutions, superior customer experiences, and sustainable business growth.

About the Author

Bhupendrakumar Panchal

Bhupendrakumar Panchal

Bhupendrakumar Panchal (aka Bhupen) is a Project Director for Hexaware’s Financial Services vertical. Bhupen is a techno–functional expert with 28+ years of industry experience, predominantly working with the financial services client across the globe. He has passed CFA- level 2 and has excellent understanding of the Capital Markets domain. He has donned the consulting & advisory hat with large Investment Banks, Asset Managers, Fund Managers, Transfer Agencies, Index Providers, Custodians, Private Wealth Managers, Retail and Corporate Banks.

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