TECH NEWS – Artificial intelligence (AI) is bringing about radical changes in the way financial services, especially the banking sector, are operating, creating significant efficiency gains and new business opportunities. According to a recent forecast by Deloitte, AI will play a key role in shaping the future of the industry. In addition to reducing costs and increasing efficiency, it can bring breakthroughs in many areas, from software development to the fight against fraud.

The financial sector is constantly evolving, while facing a low growth and interest rate environment, as well as geopolitical uncertainties. In this dynamic environment, technological innovation, especially artificial intelligence, is becoming decisive.

Deloitte’s latest FSI Predictions analysis shows that AI tools They could also revolutionize software development in the banking sector. They could reduce software investment costs by up to 20-40 percent by 2028, which could result in savings of up to $1.1 million per engineer per year. This efficiency gain can be seen at all stages of the software development life cycle (SDLC).

“Companies that recognize and embrace these changes early and approach technological transformation in an innovative way are likely to be in a great position in the market over the next decade. For example, generative AI can significantly reduce operating costs at banks, and according to the majority of bank leaders, AI will become a key element of their business strategy by 2025,” said Tamás Schenk, Partner at Deloitte Digital.

New opportunities and challenges in financial services

The application of AI goes far beyond software development. Intelligent technologies are also fundamentally transforming customer service: personalized, 24/7 services, such as facial recognition or voice control, are becoming commonplace. In addition, AI can make a significant contribution to the fight against fraud, for example by filtering out false claims in the insurance sector.

However, for banks, the introduction of artificial intelligence brings not only benefits but also challenges. It is of paramount importance to develop robust governance models that oversee the integration of AI, as well as to provide appropriate data management platforms for the effective implementation of AI. Ethical and responsible use of AI is also key, especially given the rise in deepfakes and digital fraud.

“AI-driven solutions offer an opportunity to address the challenges of today’s financial systems by automating data collection, improving the speed and quality of decision-making, and increasing an organization’s readiness for regulatory compliance,” emphasized Tamás Schenk.

The financial institutions of the future will be those that successfully combine technological innovation with traditional banking foundations, while adopting a customer-centric approach and continuously adapting to changing market conditions. Exploiting the opportunities created by AI and responsibly managing the associated risks will be key to long-term growth and competitiveness.

Source: Deloitte