The expanding horizons of Generative AI and LLMs in Indian Banking Sector .

The Indian Banking system has gone through a radical change since 1990s. When computers where introduced in place of manual lengthy files . The use of computers not only made the work easier and faster, but it also minimized manual errors. Generative AI and LLMs in Indian Banking Sector will only magnify Banking.

Since then , the Indian Banking Sector has come a long way , where the whole auditing system has been computerized. The Banking has been centralized and from visiting Bank Branches in person , customers are doing banking on fingertips. From Branch Banking to Internet Banking to Mobile Banking, the Banking sector has surely come a long way.

Indian Banking and Role of AI.

In the current context, only having large deposit base, underwriting acumen is not enough to drive profits and expand. The Role of AI to innovate and create some unique customer propositions is the way forward.

The aim of usage of AI is to streamline the customer experience by providing straightforward prompts that enable customers to promptly retrieve information on any product, including bank statement details.

Role of Large Language Models (LLMs) in Banking Optimization.

Applications using generative AI, like OpenAI’s ChatGPT, operate mostly on LLMs. The development of LLMs, which are centered on the elements that improve information clarity and communication skills, is expensive and time-consuming.

LLM offers the capacity to generate human-like, intuitive write-ups and convert buying through a multitude of data points that we have.” That’s essentially where the true benefit lies. Generative AI and LLMs in Indian Banking Sector will only accelaerate this phenomen

To obtain greater business outcomes at the same expense, generating content—whether marketing or code—with a private LLM and making decisions to automate procedures across streams will be helpful.

The future planned investments by Banking Majors in AI and LLMs

The banking majors like HDFC Bank plan to roll out LLM powered Website which will attract the existing as well as new user base. With private LLMs, internal operations and the client experience could be completely changed.

In order to generate business requirement documents, credit assessment models, and other documents that analysts often have to manually sift through a tonne of data, HDFC Bank will use a private LLM for genAI.

Another Private Bank, Axis bank is collaborating with top cloud service providers and software as as service providers to explore options of using LLMs in their operations.

It is not financially viable to run the compute requirements for pre-trained and untrained models in one’s own data center. Cloud, which provides state-of-the-art compute on a need basis will be very much useful and efficient in this regard.

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The future of LLM usage and generative AI usage in Banking

In the next two years , Banks will also use a private LLM for genAI to develop business requirement documents, credit assessment models, and other documents that require analysts to manually go through a tonne of data.

Private LLM adoption will increase in the near future. “From our engagement, the trend is still on Proof of Concept or Proof of Technology in India and internationally,” stated Ashish Kakar, research director for IDC Financial Insights, IDC Asia/Pacific. The early use cases on transaction processing, IT operations, and knowledge management make up the majority of the use cases. Banks are still mostly using models as a service at the present rather than developing their own models. Once the initial pilots are successful, we anticipate a rise in private LLM for the next year.

“Banks may be able to perform precise predictive analytics, fraud detection, and prevention with the use of private LLMs.It will lead to improved fraud and risk management. As a result of improved technology and increased data availability. Banks and tech companies alike may find it advantageous to collaborate with credit bureaus, account and data aggregators and other financial institutions to grow their operations.”

Technical Partners

Industry participants are assisting IT firms like Tech Mahindra in creating private LLMs. The extensive and varied data from the financial sector emphasizes the importance of LLMs for companies. We are helping our customers with on-premise systems to solve data privacy concerns by optimizing the LLMs that are currently accessible.

AI companies like CoRover are also working in the field of generative AI and LLM for Banking Sector which may increase the diversification in this field .CoRover is already providing Chatbot Services to organizations like NPCI , IRCTC.

Ultimately, we need to wait and watch how things unwind in this segment in coming time.