3 Action goals to apply and deploy artificial intelligence in the fields of finance, insurance, and banking

* BFSI is an acronym for Banking - Financial Services - Insurance, which can be understood as a combination of economic sectors related to finance, including banking, financial services, and insurance. Businesses in this field include commercial banks, insurance companies, non-bank financial companies, investment funds,...

Achievements in applying artificial intelligence in the field of BFSI, especially the banking industry in the world

In 2022, the size of the worldwide artificial intelligence market will reach 454.12 trillion USD. By 2032, the size of the worldwide artificial intelligence market is estimated to reach 2,575.16 trillion USD. In the cycle from 2022 to 2032, the CAGR of the worldwide artificial intelligence market is expected to reach 19% (Precedence Research, 2023). Regarding the BFSI sector, the worldwide Artificial Intelligence market size in this field in 2022 will reach 19.45 billion USD, and is estimated to reach 56.03 billion USD in 2029, with a CAGR of 16.3% every year (Stratview Research, 2023) shows that artificial intelligence is an investment priority for organizations and businesses in the field of BFSI around the world.

Large organizations and businesses around the world in the field of BFSI have soon realized the impact and potential of artificial intelligence in daily operations. JP Morgan Chase, the largest bank in the US, faced the challenge of the legal department, when the specialists of this department had to read and approve a large number of documents, leading to a lot of time lost on work. creates little value. To solve the above problem, this bank has deployed COiN solution - a legal document review solution using machine learning and image detection. The solution is capable of performing a workload equivalent to 360,000 man-hours within seconds, thereby saving time and workload for this bank.

Vietnam's success in applying artificial intelligence in the banking industry and BFSI in general

In Vietnam, the artificial intelligence market size in 2023 is estimated to reach 541.4 million USD, and 1.885 billion USD in 2030, with a CAGR of 19.51% (Statista). The application of artificial intelligence in the BFSI sector, especially the banking industry, has also achieved a high level of maturity. According to Nielsen's 2022 report, 91% of banks in Vietnam have confirmed using artificial intelligence. The rate of investment in artificial intelligence by banks in 2022 is 1.5 to 3.5 times higher than in 2021. All shows that Vietnam has extensive experience and a high level of maturity. in the application of artificial intelligence in banking, at the same time, investments in artificial intelligence in this industry are being focused and deployed rapidly, and the level of artificial intelligence application in the banking industry in Vietnam is not far behind the world.

Opportunities for Vietnam to catch up with the world in applying artificial intelligence in the field of BFSI

In order for Vietnam to catch up with the world in the application and deployment of Artificial Intelligence, in the opinion of some industry experts, it is necessary to approach the problem from three angles: research, human resources, and determination. application direction of artificial intelligence. From a research perspective, it is necessary to allocate resources for research appropriately, ensuring priority is given to highly applicable fields such as machine learning, natural language processing, optical character recognition, etc. From a human resources perspective, it is necessary to build a team with high expertise and core competencies, as well as positive energy and perseverance in pursuing goals. From an application-oriented perspective, it is necessary to focus on developing and packaging products with stability and commercialization capabilities, directly implementing core use cases in the BFSI sector in general and the banking industry in general. private.

Key action goals for Vietnam to seize opportunities and catch up with the world

Based on 3 angles for Vietnam to catch up with the world in applying and deploying artificial intelligence, especially in the field of BFSI, there are 3 proposed key action goals:

• Customer experience: Artificial intelligence currently plays an irreplaceable role in customer experience, especially in the service registration and account opening steps. eKYC solutions using AI are capable of recognizing customers' faces and recognizing optical characters, helping to shorten the service registration and account opening process, quickly and accurately. Besides, artificial intelligence has the ability to help create hyper-personalized experiences for customers. By applying artificial intelligence to data analysis, banks can understand customers' desires, goals, and financial habits, thereby offering the most suitable products and advice to customers. client.
• Credit risk assessment and fraud detection: artificial intelligence brings new ways in credit scoring assessment. When not applying artificial intelligence, credit scoring personnel must review credit assessment criteria themselves. When applying artificial intelligence credit scoring algorithms, credit scoring can be performed automatically, while providing more perspectives for credit scoring and decisions, thanks to the ability to The ability to analyze customer data about customers' transaction history, transaction behavior, and financial habits. From there, banks can assess credit risks in a multi-dimensional and quick way, while enhancing the ability to detect fraud when they know of unusual transaction behavior.
• Document processing: Some artificial intelligence application technologies have the ability to shorten and automate the text and document processing process. Optical character recognition technology is capable of extracting data from texts and documents; Helps reduce data entry time and effort. Machine learning technology can be applied to automatically classify documents, such as customer records, account opening applications, credit loan applications, etc., helping to reduce time and effort on desk work. , while optimizing labor productivity.

Businesses in the BFSI sector in Vietnam, especially in the banking industry, should focus on strengthening resources and capacity to implement the above key action goals, aiming to optimize operations. Daily operations, thereby improving labor productivity, saving resources and costs for core operations; is a stepping stone to catch up with the level of Artificial Intelligence application in the field of BFSI in the world.

Reference source: Summary

Compiled by the DTSVN author group - Digital transformation solutions for the Finance and Banking industry.

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