Banks are missing out on benefits of GenAI in client engagement: Bain & Co

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Only two out of 16 financial institutions interviewed by the HKMA said they use GenAI to create tailored marketing plans or customised pitches

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Banks in Hong Kong are slow to deploy GenAI in their marketing function, according to a report published by the HKMA. Photo: Shutterstock Images

Aileen Chuang

Published: 2:00pm, 3 Oct 2024

Banks are falling behind other industries in deploying generative artificial intelligence (GenAI) to differentiate their products and services, leaving vast monetisation opportunities untapped, according to management consultancy firm Bain & Company.

That is especially true in the areas of marketing and customer engagement, where retailers and consumer goods producers have excelled, said Andreas Dullweber, the firm’s global head for marketing and customer experience based in Munich.

“There are a lot of opportunities amplified by recent technology developments on GenAI for financial institutions to learn from those industries,” he said during a business trip to Hong Kong. Higher productivity created by GenAI can boost revenue and trim costs, he added, citing its global study involving financial institutions.

Banks and other financial institutions have used GenAI in the back office to optimise processes and fraud management, Dullweber said. They have only recently started experimenting with it gradually in client-facing services, he added.

Andreas Dullweber, global head of marketing and customer experience at Bain & Company. Photo: Handout

GenAI describes algorithms that can be used to create new content, including audio, videos, codes, images, texts and simulations.