Generative AI represents a technological revolution, where chatbots are capable of thinking and even reasoning. Generative AI offers a significant opportunity for the banking sector to redefine how it serves millions of consumers.
Experts shared insights on the applications and impacts of generative AI on the banking sector in Season 2, Episode 10 of the DxTalks program. The episode featured Mr. Nguyen An Nguyen, Founder and CEO of Trusting Social; Mr. Nguyen Anh Tuan, IT Director of Techcombank; and Mr. Duong Quoc Tu, Retail Banking and Digital Banking Director at Saigon – Hanoi Bank (SHB).
Generative AI is a next-generation technology, with the ability to advance automation by empowering computers to generate new content and ideas, rather than merely processing and analyzing data. With these capabilities, generative AI is gradually bridging gaps that human effort alone could not fill.
The first benefit that can be mentioned is the ability to democratize information and knowledge. In many industries, knowledge and information are primarily held by individuals, and this asset essentially disappears when the person leaves the organization. This presents a significant challenge for the financial services industry as a whole and for the banking sector in particular. Information is centralized, and if there are bottlenecks, it can take a long time to receive reports from various departments.
For example, if a field sales representative wants to know how their performance compares to the previous week, they would have to go to the Business Intelligence Competency Center (BICC) and then wait two weeks to receive the report. By that time, the market may have already changed. However, in the future, with the assistance of generative AI, “we could have a highly advanced knowledge management system that bridges the gap between newcomers and seasoned professionals, between those with 20 years of experience and recent graduates,” Mr. Nguyen Anh Tuan emphasized.
Specifically, generative AI also offers banks the opportunity to serve the broader public more effectively. Currently, the banking sector can only cater to 1-2% of top-tier customers out of millions of potential clients, according to Mr. Nguyen An Nguyen. However, he also notes that AI has the potential to reduce knowledge costs by a factor of ten and improve customer service by a factor of ten.
Finally, like in other industries, generative AI helps employees reduce the time spent on simple, repetitive tasks. Mr. Nguyen predicts that AI could automate compliance up to 99%. For example, a mid-sized bank may handle millions of sales calls, debt collection calls, and customer support calls. Ensuring compliance with standards for customer service representatives is an ongoing challenge. However, generative AI is now ready to fully address this issue.
Despite its unprecedented benefits, experts unanimously agree that AI cannot replace the role of humans, including in the banking sector. Mr. Tuan expressed, “I do not believe that machines will replace humans someday, as AI lacks compassion.”
Agreeing with this view, Mr. Nguyen added, “I believe that compassion is a unique skill that no machine can replicate. Machines are designed to reason logically, process vast amounts of data, and respond quickly, but they are not designed to possess compassion because they do not suffer, nor do they love.”
In reality, the mere existence of technology does not mean that customers will immediately adopt it. It will take a considerable amount of time for individuals to truly trust financial advice, bank account recommendations, or credit card referrals from AI. It is even more challenging for users to entrust AI with personal loan management or banking transactions.
Mr. Duong Quoc Tu believes that the value of generative AI lies in its ability to better serve customers in the middle and mass market segments. For customers in the higher-end segments, however, personal interactions are still highly valued over purely technical solutions. They prefer to look someone in the eye, shake their hand, and possibly have a drink with them. “There are many things that machines will never replace. For high-end customers, I believe the level of human interaction will always remain high,” Mr. Tu emphasized.
The revolution brought about by generative AI is likened to a deluge with the potential to transform all industries. Since its inception, this transformation has been occurring at an astonishing pace. Numerous AI models are competing, with the gap between each model and the next shrinking to mere months, compared to the years-long intervals seen previously.
IBM’s report indicates that 40% of jobs will require retraining within the next 12 months. Consider that the global knowledge industry, which accounts for 50% of the workforce and 65% of global GDP, is currently being disrupted at a rapid pace. Therefore, “if businesses do not transform and reinvent themselves, they will soon become like prehistoric dinosaurs,” Mr. Tu observed. Thus, the best time to start integrating generative AI is now.
While it is crucial to start quickly, businesses must also develop a well-thought-out strategy. According to Mr. Tu, companies must establish the right mindset before undertaking any transformation activities, and it cannot be treated as a minor side project. Otherwise, businesses risk expending considerable resources with little to show for it.
