Artificial intelligence is reshaping finance, with PwC forecasting efficiency gains in banking, FINOS introducing an AI governance framework, and Devexperts bringing AI-powered trading to Discord.
These advancements underscore AI’s influence across financial services, from boosting security and streamlining operations to enhancing user access and tackling governance issues.
Generative AI is set to transform the banking sector, offering opportunities for efficiency, security and customer satisfaction, according to a report from PwC.
The report highlighted how generative AI can streamline processes, enhance cybersecurity and provide personalized banking services.
Loan processing, fraud detection and risk management could be impacted, the report said. By using advanced AI models, banks can reduce loan approval times and make more precise decisions.
“GenAI is a game changer for banking,” the report said. “It will significantly help make the overall financial services process more secure, efficient and customer friendly.”
However, the report also warned of potential risks associated with generative AI adoption, such as data privacy concerns and the need for security measures. To mitigate these risks, PwC recommended implementing data governance, enhancing AI system security, and adhering to established frameworks like the AI Risk Management Framework from the National Institute of Standards and Technology (NIST).
The report suggested that banks developing a customized generative AI strategy will be best positioned to use its benefits while managing associated risks. As the technology continues evolving, integrating with other emerging technologies like blockchain and Internet of Things (IoT) could further expand generative AI’s capabilities in the banking sector.
The Fintech Open Source Foundation (FINOS) released a draft of an AI governance framework designed to guide financial institutions in the safe and compliant deployment of AI technologies, according to an Oct. 1 press release.
The framework, developed by FINOS’ AI Readiness Special Interest Group, outlines 15 risks and 15 controls tailored explicitly for AI systems using large language models in financial services. It aims to address the challenges of implementing AI in the regulated financial industry.
“It’s exciting to see how the FINOS membership has come together in a relatively short period of time to work on these important foundational guidelines for deploying AI in the complex and regulated financial services world,” FINOS Executive Director Gabriele Columbro said in the release.
The announcement is part of FINOS’ broader AI initiative, which seeks to accelerate AI readiness in the financial sector.
Devexperts integrated its AI assistant, Devexa, with Discord, expanding its multichannel capabilities, according to a Tuesday (Oct. 8) press release.
Already supporting Telegram, WhatsApp and Facebook, Devexa’s new integration aims to streamline trading for users directly within Discord’s platform.
Traders using Discord can “access all the benefits of Devexa, including her knowledge base support and in-depth financial analysis capabilities, as well as her virtual assistance and support,” Jon Light, head of OTC platform at Devexperts, said in the release.
Traders can get financial data, perform technical analysis and place orders without switching between apps, the release said.
The integration provides brokers with a direct line to traders, enabling them to deliver trading signals, updates and messages to their communities without leaving Discord. By consolidating communication, brokers can keep users engaged and informed in real time, per the release.
The move highlights the company’s effort to simplify and centralize trading processes across widely used communication platforms, making financial tools more accessible on the go.
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