Banks Seek GenAI Solution to Combat Cybercrime and Regulatory Burden

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As banks face a surge in costs to combat cybercrime, protect customer data, and comply with increasingly stringent regulations, executives are turning to Generative Artificial Intelligence (GenAI) as a potential solution.

The Need for Innovation

According to a recent survey, 41% of bank executives have already implemented or are piloting GenAI solutions. The technology has the potential to revolutionize banking operations by:

• Automating repetitive tasks
• Improving customer service
• Enhancing fraud detection capabilities

The demand for GenAI is driven by the need to address the growing threat of cybercrime, which has become a major concern for banks worldwide.

Expert Insights

In an interview with KPMG, Peter Torrente, US Sector Leader for Banking & Capital Markets, noted that “GenAI is poised to transform the banking industry by providing a new level of efficiency, accuracy, and security.”

Steven Arnold, Sustainability Financial Services Leader at KPMG, emphasized that “GenAI can help banks automate manual processes, improve data analysis, and enhance customer experience, ultimately driving business growth and profitability.”

Regulatory Compliance

The survey also highlighted the importance of regulatory compliance in the adoption of GenAI solutions. Brian Hart, Principal for Financial Services Risk, Regulatory and Compliance Network Leader at KPMG, noted that “Regulatory bodies are increasingly focusing on the use of AI in banking operations. Banks must ensure that their GenAI solutions comply with relevant regulations to avoid potential risks.”

Conclusion

As banks continue to navigate the complex landscape of cybercrime and regulatory requirements, it is clear that GenAI has the potential to play a significant role in shaping the future of the industry.

Source: KPMG Banking Survey 2023