By Juan Urthiague, Chief Financial Officer, Globant
According to a Citizens Bank survey, 97% of private equity financial firms use AI. Adoption by financial industry pioneers widely underway, although the challenge is no longer implementing AI but maximizing its benefits.
The AI market in banking was valued at $20 billion in 2023, and its growth is estimated to reach $315 billion by 2033. But what will happen over the next ten years?
AI will enhance customer experience, especially with personalized services and process automation. However, to unlock its true potential, the key is to avoid specific implementations that only favor comprehensive solutions. With technology, we have learned that change is constant.
Rigid Systems Risk Obsolescence
The first key to thriving is related to this: systems must not be rigid, as they can quickly become obsolete. There is an answer to this question: modular AI solutions that adapt continuously, such as open-source platforms or cloud-based systems.
The challenge is to construct a reliable and solid infrastructure that is flexible enough to incorporate new advances and keep the company at the cutting edge. As always, nothing is written in stone.
AI Pain Points
This apparent instability can be paralyzing for those unsure how to proceed. Here, we find the second key aspect of adopting AI: beginning with pain points. Early steps can be costly and affect smaller companies, so starting with targeted high-ROI projects is crucial. Studies indicate generative AI can increase banks’ operating profits by 9% to 15%.
Regulatory & Security Challenges
The third aspect is a universal concern across industries: regulatory and securityissues, which are especially sensitive in finance considering the involvement of data and large sums of money. Each AI adoption, ignoring how trendy or efficient it is, must have privacy and compliance at its core. Security is key at every step, from the beginning with the design of the AI architecture until the end with an interdisciplinary team, which should include legal, compliance, IT, and data experts collaborating.
Promoting AI Culture
The fourth key point relates to this: promoting an AI culture within companies. The human factor is as vital as technological advancements, meaning technology should be a tool for innovation, not a replacement for human resources. Companies are about people, and that requires attention to maintain a stable environment.
We can’t ignore the fact that this shift will change specific tasks and modify some roles. Addressing these challenges requires offering training and development to ensure everyone continues to feel valued, even as processes evolve.
In the organizational mindset, two words are the key to team success: upskilling and reskilling, in this case, to align with AI processes.
Competing for Talent
Lastly, we can’t forget the intense competition for talentthat spans industries and borders. The high demand for skilled professionals requires an investment and a strategy to close the talent gap. Some companies have experienced difficulties recruiting AI specialists, while others have started making proactive decisions to get ahead of the competition.
In recent years, leading players in the financial sector have recognized AI’s transformative power. Now, the challenge is to address the key aspects needed to maximize its potential.
About the Author
Juan Urthiague is Chief Financial Officer at Globant. Juan joined Globant in 2011 and was a key member in the company’s global expansion and transformation into a publicly listed company in NYSE. In 2017, he spent 15 months outside Globant serving as CFO Latam for OLX and as CFO for Avantrip.com. He oversees Corporate Finance, Treasury, Accounting and Tax, Financial Reporting, Financial Services, and Investor Relations. Juan was appointed as CFO in October 2018. He has an MSc in Finance and Capital Markets from Dublin City University and a Bachelor’s degree in Business Administration from the Universidad de Buenos Aires. Juan is a native Spanish speaker and is fluent in English and Portuguese.
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