Tharindu Gunarathne’s Post

"With great power comes great responsibility." Uncle Ben's words ring truer than ever in the context of AI in banking. As the Reserve Bank of India explores regulating AI, it’s not about stifling innovation, but ensuring that power is used ethically and securely. AI’s potential is immense—automated decisions, fraud detection, personalized services—but what about bias, data privacy, and accountability? Without a solid framework, AI could create ethical blind spots or worse, systemic risks. Should we let AI self-regulate, or should we adopt a strict governance model? Over-regulation risks stifling innovation, while under-regulation risks creating a digital wild west. The RBI’s move is crucial to balance innovation with responsibility, ensuring that AI empowers and protects both the industry and its customers. This is a defining moment for the future of AI in banking. How do we ensure that we harness its power responsibly? https://lnkd.in/dGu36U8J

🚀 Navigating the AI Landscape in Banking: Opportunities and Challenges 🤖 The emergence of ChatGPT in November 2022 catapulted generative AI into the spotlight, igniting discussions on its potential to revolutionize digital experiences. However, it also raised concerns about content authenticity and copyright violations. While AI has silently powered efficiency gains for years, its recent advancements demand cautious integration, especially in regulated sectors like banking. Caution mustn't hinder progress; instead, it should drive informed risk management strategies. As banks strive to meet consumer expectations for AI-enhanced experiences, education and exploration are key. Most bankers are still familiarizing themselves with AI solutions, with ChatGPT being the most recognized tool. Despite concerns about ethical issues and customer relationships, banks foresee significant benefits from AI adoption. However, they are in the early stages of preparing for widespread implementation, with many still collecting information or conducting pilot projects. As the AI landscape evolves, talent capable of integrating innovations will be vital. Banks and vendors must position themselves strategically to harness the full potential of AI in banking. 💼🤖 #AI #Banking #Fintech #Innovation #FutureOfWork #DigitalTransformation

🚀 Embracing AI in Banking: Balancing Innovation and Human Touch 🚀 Banks face a pivotal moment—invest in AI transformation or maintain the human-centric approach that built their reputation. Interesting case from #HBR by #ThomasHDavenport and #GeorgeWesterman: an initial AI investment in a highly publicized project failed to meet expectations, reminding us that tech hype doesn’t always translate to success. Although new AI technologies can revolutionize client interactions and slash costs, the stakes are high: massive savings and a competitive edge, but potential alienation of clients craving human interaction. What’s your take? Should banks prioritize AI or human connection? 🤔💡 #BankingInnovation #AI #Leadership #ClientExperience #DigitalTransformation https://lnkd.in/ePVKBT6g

“Unleashing the Power of AI in Banking” by American Banker #AIAdoption in #Banking: The document discusses the cautious approach banks are taking towards the adoption of AI, particularly #generativeAI tools like ChatGPT. It highlights the need for careful #AIRiskManagement in the highly regulated #bankingindustry. #GenerativAIImpact: There’s an emphasis on the transformative potential of generative AI in banking, from automating tasks to enhancing #customerexperience. However, concerns about #accuracy, #ethics, and #loss of distinctive touch are also noted. Industry Readiness: The report indicates that the banking industry is in the early stages of #AIImplementation, with most banks still educating themselves and running small #pilotprojects. It suggests that #standards and #bestpractices for #AI use are evolving rapidly.

Exploring Hyper-Personalization and AI in #Banking: A Journey with Vaidyanathan V, CIO of Unity Small Finance Bank. Discover how technological overhaul, customer-centricity, and strategic tech allocation are shaping the future of banking in India. Read more: https://lnkd.in/dB8jfMWQ #BankingInnovation #AI #HyperPersonalization #DigitalTransformation #CoreBankingSystem #CustomerCentricity #DataAnalytics

Financial institutions have understandably been cautious in developing AI on a grand scale, but organizations that have embraced AI's risks have learned the most about how to use it safely in their industries. Here's why banks need to start using, testing, and failing with AI > https://owy.mn/3ZUBRAC Meet us in hall 3 at the upcoming Singapore FinTech Festival to explore how the banking sector has leveraged AI for real results. #SFF2024 #OliverWymanQuotient #AI

Taishin Bank’s entrepreneurial community uses AI to write credit reports in just 4 hours Taishin Bank is enhancing its digital capabilities by partnering with Moody's to use artificial intelligence (AI) for credit reports. This initiative, launching in November, aims to cut the preparation time for Fajin credit reports from 21 hours to just 4. The goal is to streamline the credit reporting process, enabling staff to focus more on client interactions. General Manager Lin Shuzhen noted that the traditional credit report compilation is time-intensive due to the significant effort required to gather public information. With AI's help in collecting and organizing data, the reports will be produced more efficiently, meeting the bank's specifications. AI technologies represent a forward-thinking approach in keeping pace with digital advancements. Lin expressed confidence that the partnership would foster innovative solutions in the Taiwanese banking sector, underscoring Taishin Bank's commitment to harnessing digital innovations for operational efficiency. #AI #Taiwan https://lnkd.in/gYBHBibe

This fictionalised banking story about how much, how far and how fast to purse #AI and #GenerativeAI is fascinating. I imagine a similar scenario is playing out in many boardrooms across the global. Whats your #AI strategy - how much do you invest, where and at what cost? But also what is the impact on people - both customers and staff. A thought provoking piece from Harvard Business Review. Thanks Tom Davenport and George Westerman. The expert insight from Noémie Ellezam and Sastry Durvasula provides a great counter balance on the story.

Driving the responsible adoption of AI in banking, Saldo Bank's CEO Jarkko Maensivu recently shared an insightful perspective on "AI Regulation: shaping the digital future" at FIBE Berlin. 🧭 Saldo has used explainable AI models like XGBoost, achieving impressive gains of 6% improved fraud detection and 28% better churn modeling compared to traditional techniques. While prioritizing transparency and explainability for compliance, Maensivu highlighted opportunities to advance through flexible AI governance. He advocated for a shift towards approving the overall robust AI process versus static individual models. 💡 The true gamechanger? The ability to continuously retrain AI on real-world performance data for sustainable optimization. Maensivu outlined how this cutting-edge approach could propel the financial sector forward. While #FIBEBerlin may be over, the conversation around ethical AI innovation is just getting started. #fintech #banking #ai #airegulation #saldobank

🏦 As AI advances in leaps and bounds within the banking sector, compliance is becoming the cornerstone of sustainable innovation. Financial companies are not just implementing cutting-edge technology; they’re defining an era where each algorithm, data set, and automated decision underscores the balance between growth and governance. 💡 However, AI’s future in Banking hinges on the commitment to ethical standards and adherence to increasingly tighter regulations. The relationship between tech leaders and regulatory bodies becomes much more important as they will be able to craft frameworks to protect customers and also to harness AI's power fully while maintaining the integrity of the financial system. Lumenova's Responsible AI (RAI) platform offers a holistic strategy to address AI related risks and elevate the fairness, transparency and responsibility of your AI systems. 👇Learn more in our blog below: https://lnkd.in/d8ixFDmg #Banking #AICompliance #Innovation #LumenovaAI #AI