The adoption of artificial intelligence (AI) in financial services by commercial banks is rapidly gaining momentum. (Image courtesy of Yonhap)
SEOUL, Nov. 13 (Korea Bizwire) – The adoption of artificial intelligence (AI) in financial services by commercial banks is rapidly gaining momentum. Specifically, the integration of generative AI, which derives new value by learning from existing data, is being hailed as a pivotal driver of growth within the financial sector and a cornerstone of innovation in financial services.
Recent financial reports indicate that banks are gearing up to introduce conversational AI services designed to offer real-time financial guidance and facilitate Q&A interactions. Unlike previous iterations that were confined to simple text exchanges or basic voice command processing, these advancements aspire to create a more conversational, human-like interaction.
KB Kookmin Bank is currently conducting internal beta tests on its AI financial assistant, ‘Honey Assistant,’ originally introduced as a kiosk and now being adapted for mobile use. The bank aims to test the assistant’s ability to engage in natural conversation before opening the beta to the public for service enhancement.
In August, Shinhan AI, an affiliate of Shinhan Financial Holdings, unveiled a demo version of ‘Momul,’ a service amalgamating generative AI technology with financial data analysis. Despite the decision to dissolve Shinhan AI, Shinhan Financial intends to delegate related tasks to its group companies to continue service development and launch preparation.
Woori Bank is in the process of selecting a preferred bidder to introduce ‘AI Banker,’ a customer consultation service utilizing generative AI. This month, the bank will commence development work to integrate the service into an existing mobile application, Woori WON Banking, offering guidance on deposit and savings products and extending this assistance to branch-level interactions by March of next year.
Apart from enhancing customer service quality, AI serves as a catalyst for operational efficiency in bank management. For instance, the implementation of optical character recognition (OCR) technology streamlines tasks by automatically extracting text from images like faxes, augmenting accuracy, and saving time in manual data input processes.
Efforts to implement generative AI are expected to gain momentum within banks. Hana Financial Group is currently conducting a proof of concept to introduce generative AI to external IT companies and knowledge chatbots for employees. Hana Bank is also proactively leveraging generative AI to address customer data security concerns and breaches.
Oh Soon-young, head of KB’s Financial AI Center, emphasized the efficiency and reduced human workload achievable through task automation during a seminar at the Bank of Korea. The ultimate goal is to minimize customer turnover, subsequently bolstering bank revenue.
A report from McKinsey in June estimated that the adoption of generative AI could potentially contribute 2.8 to 4.7 percent to banking industry revenue, generating up to $340 billion (about 447 trillion won) in value.
Kevin Lee (kevinlee@koreabizwire.com)
