Choosing the right AI solution for your bank
Financial services professionals are eager to get their hands on AI-powered tools. This technology promises better information sourcing, instant answers to their most pressing questions, and disentanglement of operational inefficiencies. In fact, 47% of bankers surveyed in Hapax’s recent Documentation Dilemma report believe that AI would improve their confidence at work.
But not all AI models are created equal. In a highly regulated industry, bankers require tools built specifically for their needs. To ensure your institution makes the right choice, let’s explore three key questions to keep in mind when evaluating potential generative AI solutions.
- What data sources inform the solution’s responses?
Open source Large Language Models (LLMs) like ChatGPT pull information from anywhere and everywhere on the internet. That means the results they provide aren’t always relevant or even accurate; so-called “hallucinations,” or AI models generating false answers, are all too common.
Bankers already have a difficult enough time sourcing the answers they need, like information about federal (55%) and state (52%) regulations. They don’t need to sort through inaccurate data as well; they need tools that are purpose-built for the financial services industry. The right generative AI model will be built on relevant sources like:
- Conversations between bankers
- Real-time insights and information related to federal and state regulatory requirements
- Internal policies and procedures
When AI is built upon data that’s industry- and institution-specific, bankers can trust that the responses it generates are tailored to their region, their institution, and even their unique role.
- Does this solution offer up-to-date regulatory information?
Sixty-one percent of respondents agreed that compliance burdens are disproportionate for small to midsize bank and credit unions compared to larger institutions. This makes keeping up with regulatory changes an ongoing battle, with 48% arguing their institution lacks adequate resources to do so.
When bankers do track down the information they need, it’s often out of date. The majority (64%) feel stuck in an endless cycle of updating documents, and noted that by the time documents get updated, the rules have already changed again (56%).
Bankers need to trust that the information they’re sourcing is adherent to the latest requirements. An AI model that can proactively notify users of proposed rule changes and integrate updates into existing documents helps minimize the risk of non-compliance.
- How does this solution impact the end user?
No matter the use case or industry, AI implementation in a professional setting serves a universal purpose: to make our lives easier. This is especially true for bankers, who spend an average of 7 hours per week asking their peers or managers for help locating information (and another 8 combing through policies to ensure adherence to regulatory requirements and internal procedures).
All of this prevents them from doing their jobs efficiently. It hinders their ability to build relationships with clients. But when bankers have instant access to the information they need, they can focus on higher-value tasks that drive growth and customer satisfaction.
The right AI will allow bankers to forge lasting connections with their community and deliver exceptional experiences, so it’s crucial to do your due diligence when searching for the right solution.
For a full list of questions to consider when selecting a generative AI tool, check out Hapax’s Generative AI Evaluation Checklist.
