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Generative AI in Financial Services: Top 5 Quick Wins for Maximum Impact  

Capital Markets

Financial Services

December 8, 2023


Generative artificial intelligence (AI) has come a long way from being just a buzzword to offering business value quickly.  

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

This blog will explore the top 5 ways in which Generative AI in financial services can quickly add value to various 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 financial institutions’ front-, middle-, and back-office operations. Generative AI for financial services can significantly reduce operational spending by automating all these major operational processes. For example, Generative AI can reduce the time and effort required to analyze and manage documents through automated data extraction and analysis to intelligent summarization and document version control. In the case of regulatory compliance, Generative AI can 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. 

  1. Revolutionizing Customer Service Capabilities and Experience 

Generative AI enables financial institutions to create highly personalized customer interactions. Generative AI-enabled chatbots and virtual assistants can engage customers in real time, understanding their requirements and providing tailored responses. Generative AI can also be trained to produce customized 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 by reducing manual paperwork through automated identity verification and account setup, thereby leading to a positive first impression and customer retention. 

  1. 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 in financial institutions enables the modernization of these legacy systems through automated code refactoring and optimization. It can analyze millions of lines of code, identify inefficiencies, and automatically rewrite them for improved performance and enhanced system reliability. Moreover, Gen AI enables intelligent mapping, refining, and integration of data across different legacy systems and platforms, ensuring smooth and seamless migration. 

  1. 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 for new products and services. 

  1. Transforming Sales and Marketing for Enhanced Revenue Growth 

Generative AI can develop customized and personalized marketing campaigns, content, and collaterals based on the product or market segment information given. It can analyze the client’s behavior and preferences in detail and significantly contribute to the client engagement process, thereby 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, Generative AI can also be leveraged in developing domain-specific solutions across segments like asset management, wealth management, custody business, etc. For example, asset managers can use it for model portfolio generation, considering factors like risk tolerance, investment objectives, market conditions, and historical fund performance. In the asset servicing and custody business, Gen AI can streamline the trade settlement and clearing processes by automating repetitive tasks and 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 spending of financial institutions through automation and 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 will see a profound increase in productivity and efficiency for financial institutions as leveraging AI can allow their workforce to focus on 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 it evolves, we will see more sophisticated uses of Gen AI in financial services. The players that embrace these advancements responsibly will gain an 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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