GenAI ‘heralding a transformative era’ in wealth, FSI

Generative artificial intelligence (GenAI) technologies are set to drive “unprecedented innovation and operational efficiency” within the financial services sector, says data and analytics firm GlobalData, with wealth firms set to undergo significant transformation.

With wealth firms already actively prototyping GenAI in their existing chatbot and robo-advice functions, building out more “personalised, human-like interactions”, Global Data predicts an explosion of likely use cases for the technology over the next five years.

“From 2025 to 2030, GenAI is likely to create personalised financial plans, dynamically adjust asset allocations, and automate compliance and onboarding processes, improving efficiency and client service.”

By 2031, GlobalData predicts that GenAI will enable increased machine autonomy in decision-making, enabling full-service roboadvisers to autonomously manage portfolios based on client-defined risk tolerances.

This, GlobalData said, would facilitate the creation of “personalised and efficient wealth management services”.

For insurers, GenAI’s ability to sift through and interpret vast volumes of claims data will see a proliferation of advanced AI models supporting fraud detection and operational performance improvements.

With the technology already innovating front-line service portals, GlobalData predicts that by 2031, GenAI will deliver for insurers “real-time, human-like responses”, significantly advancing on current chatbot capabilities. 

For banks, GenAI is expected to enable predictive financial insights, support middle-office processes like risk assessment, and enhance operational efficiency and security, GlobalData says.

By 2031, GenAI-driven advisers are expected to handle routine interactions, reserving human assistance for high-value transactions, and thereby enhancing customer satisfaction and operational efficiency.

Mukesh Singh, senior disruptive tech analyst at GlobalData said GenAI will prove “vital in driving innovation in financial services, as the sector leads the way in exploring its potential, with use cases evolving from trials to widespread industry adoption”.

An initial focus on tasks such as generating financial reports, analysing customer sentiments, and deploying chatbots, will advance to addressing complaints, improving customer experiences, and automating compliance through a combination of human and technological collaboration.

“Eventually, GenAI is expected to independently offer customer support, integrated services, real-time financial insights, and additional services.”

Manish Dixit, GlobalData’s practice head of disruptive tech noted that, “despite a downturn in the overall funding for financial services startups, the resilience of GenAI startups in financial services has been remarkable.

“Funding in this sector surged over 30% from 2023 to 2024 YTD, indicating robust investor interest.”