How to re-imagine your business

strategy with the emergence of

Gen AI in FinTech?
June 2023
Like other industries, Gen AI is creating a buzz in the Fintech ecosystem
and pushing the industry stalwarts to reimagine their business models

Generative AI could be a game changer for fintech, however data security and privacy are potential inhibitors of Generative AI
application for fintech companies

Generative AI in Fintech
(Value-Drivers)
Opportunities and Risks
Key business questions
• Generative AI can act as a key element in (DFF
fintech to drive innovation and make the • Generative AI may disrupt businesses
products more accessible and efficient by reducing the cost of automation and • How can generative AI be effectively
cutting down the possibilities of
• It’s capable of generating highly realistic integrated into fintech companies to
human-induced errors improve decision-making, customer
and complex content – the use cases
which can disrupt the traditional experience, and reduce costs?
• It will take the innovation to a high-
workflow norms level impacting (positively) businesses’ • What are the immediate low-hanging
productivity and efficiency
• It will be adopted as a function like fruits and strategic use cases for
Generative AI-as-a-Component - generative AI in fintech?
• The adoption of Gen AI comes with
providing it as a component within the potential risks - AI bias, privacy & data
broader software or workflow process • What are the potential risks and
security concerns, and compliance limitations of implementing generative
for FinTech's issues. However, clearly over time, these AI in fintech and how can they
risks can be managed with proper be mitigated?
measures and adjustments

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As the realm of Gen AI continues to be explored by FinTechs, it is evident
that specific use-cases hold tremendous potential for value-generation

Generative AI in fintech can offer higher accuracy with employee assistance. It will increase employee productivity 5x with
higher accuracy outputs for the workflow processes or software

Use Case/ Task Utilization of Generative AI Impact on employee productivity

Customer Service and Support High

Compliance and Regulatory Reporting High

Investment and Portfolio Optimization High

Personalized Financial Advice Medium

Risk Assessment Medium

Fraud Detection and Prevention Medium

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……at the same time, the application of Gen AI also depends upon the
segment of Fintech and the prominent use-cases within

Fraud detection & risk assessment, customer engagements and predictive analysis are some of the potential use cases of
Generative AI for fintech sectors

Payment Processors Neo Banks Crypto Providers

01 Fraud Detection: 01 Personalized AI Banker: 01 Predictive Analysis:

Enable payment processors to simulate fraudulent Potential to create a personalized AI Banker for Able to predict crypto price fluctuations by analyzing
activities and improve the accuracy of their fraud customers to give personalized real-time historic price movement and market trends
detection algorithms recommendations on banking

02 Mining Efficiency:
Risk Assessment: 02 Product Innovation:
02 Generative AI can improve the mining process and
Empower businesses to identify the potential risks by Assist neo-banks in generating new product ideas by help crypto miners to discover new blocks faster with
analyzing data patterns & trends and allow them to analyzing market trends, customer feedback, etc. AI limited computational resources
take preventive measures models can offer insights into customer needs and
preferences, and help them develop innovative
financial products and services Unique Digital Collectibles (NFTs):
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03 Transaction Monitoring and Compliance: Potential to create unique digital collectibles such as
For AML and KYC regulations, Generative AI can 03 Customer Engagements: trading cards, and unique avatars, which can be
analyze transaction data to monitor for suspicious Generative AI enables neo-banks to offer collected and traded
activities, flag potential compliance violations complimentary services, and deals & discounts

04 Security:
04 Enhanced UI/UX: 04 Chatbots and Virtual Assistants: The security of currency can be enhanced by
The checkout page can be improved to make Integration of generative AI improves customer generating secure cryptographic keys, which are
payments quickly and conveniently communication helping in resolving queries of unique to each transaction – can be utilized for
new customers CDBCs as well

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 These use-cases can also be evaluated from more strategic lenses,
reflecting the investments and risks involved for a FinTech

Transaction Monitoring
and Compliance
High

Mining Efficiency
Fraud Detection and
Prevention Privacy, internal investments, and regulations & compliance
01
are the key operational risks of fintech

Security of Digital
Operational Risk

Facilitating Better Currency

Risk Assessment Fintech businesses should prioritize the enhancement of
Medium

Credit Decisions 02
Product Innovation customer experience by leveraging generative AI
Anti-Money Laundering
Enhanced UI/UX
(AML) Compliance
Predictive Analysis
Customer experience use cases are low-hanging fruits,
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which are easy to automate and have low associated risks
Personalized offerings
Personalised AI Banker
Chatbots & Virtual
Low

Assistants Risk assessment and mining efficiency use cases are

Unique Digital 04
Customer Collectibles relatively complex to automate
Engagements

Easy Moderate Hard Evolution of generative AI would enable high/medium

05 operational risk use cases to be easily automated in the
coming future
Ease of Gen AI Application

Payment Processors Neo Banks Cryptocurrency Other Processes

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 With long-term thinking, companies are gradually work on streamlining
their processes to build a scalable delivery model, powered by Gen AI
By harnessing the power of generative AI, forward-thinking fintech firms can create innovative financial products that are tailored to
individual customer needs, leading to more efficient, secure, and inclusive financial ecosystems

Low-Hanging Use-cases Transactional Use-cases Transformational Use-cases

• Chatbots & Virtual Assistants • Product/Service Innovations (such as Self-serve) • Fraud Detection/Prevention
• Customer Engagement with Gen AI • Predictive Analytics • Credit Risk Prediction/Scoring
Complexity of Implementation

• Transaction Analytics • Personalized offers/Investment advice • Anti-Money Laundering (AML) compliances

(Short-Term Adoption) (Long-Term Adoption)

Implementation Journey
Note: Some use cases may require significant computational power, advanced algorithms, and in-depth financial expertise, while others can be accomplished with simpler AI 6
techniques and readily available data.
How Evalueserve Can help?
What Evalueserve Can Offer to Support Your Business
Strategies ?
Our solution portfolio enables clients to formulate a clear vision and a defined go-forward plan and thus, stay ahead of
market disruptions

Identify Plan Strategize

Opportunity Mapping Product Roadmap Design Partner Intelligence
• Unlock New Opportunities & • Plan and prepare a robust AI- • Strengthen the core and gain
Use Cases powered by Gen AI, oriented tech roadmap, additional tech capabilities via
relevant to your business enabled by your baselined Build, Buy or Partner Strategy
domain capabilities
Opportunity Assessment Compete Strategy
• Identify Whitespaces and Voice of Customer • Continuous market monitoring
Core/Adjacent Market • Design your services/solutions to learn tech capabilities/AI-
Opportunities, pertaining to based upon realistic customer innovation strategy of key
your tech vision and biz needs and wants competitors and respond
strategy accordingly

We help clients achieve maximum impact by integrating research-driven insights, contextual innovation with strong domain capabilities

INSIGHTS ▪ INNOVATION ▪ IMPACT

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 We provide best-in-class insights, through a hybrid approach
(Mind+Machine)to maximize your RoI

Framework-driven Approach Business Consulting

Structured innovation and business approach, Set up and enhance the systematic AI strategy,
backed by a robust framework backed by robust research and advisory
Powered by capabilities
mind+machine™

Digital Platforms Problem Solving and Insights

Evalueserve offers hybrid AI-enabled, Expertise
cloud-based platform designed to take have rich experience and expertise in
market and competitive intelligence to solving complex business problems and
the next level offerings actionable business insights

Domain Expertise
Industry
Consultative experts have industry-grade expertise on business aspects of your domain and Experience &
Approach knowledge of recent developments in your industry Best Practices
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Contributors

Manish Chaurasiya Tripti Saxena

Consultant, TMT Practice Senior Business Analyst, TMT Practice
Evalueserve Evalueserve

• Strategy consultant with expertise • Strategy consultant with expertise in

in market assessment market research and analyzing
industry trends
• Extensive experience in competitive
intelligence, go-to-market support, • 6 years of experience in market
and market sizing projects for assessments and business strategy,
TMT clients for TMT clients

LinkedIn Email LinkedIn Email

Mentor: Saurabh Chhabra, Associate Director – TMT Practice, Insights & Advisory
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Elevate Your Impact