Industrial Generative AI
for Financial Services
McKinsey projects generative AI to create a $250-410 billion annual impact in the insurance and banking sectors. Enhance risk management, refine policy and portfolio pricing, accelerate forecasting, and run next-generation fraud prevention—all while cutting compute costs and speeding up calculations.
Faster, more accurate and comprehensive risk analyses are critical to the safety of the financial economy, with these analyses increasingly required by regulations such as Basel III and CCAR. Many interacting contingency factors must be considered in these risk analyses, from asset price dynamics and third party-risk to macroeconomic market variables.
The high-dimensional complexity of these analyses are typically addressed by Monte Carlo simulations — which are computationally expensive and time-consuming calculations. This scenario presents an ongoing and inelastic cost for financial institutions to maintain regulatory compliance and daily capital reserve requirements.
Solutions for Financial Services’ most computationally complex challenges.
Anomaly Detection
Fast Alternative to Monte Carlo
Optimization
Predictive Modeling
High Throughput Computing
Anomaly Detection
Fast Alternative to Monte Carlo
Optimization
Predictive Modeling
High Throughput Computing
Identify anomalies or outliers with greater accuracy using mathematical techniques from quantum science.
Key Challenges
Zapata AI Solutions
Credit Fraud Detection
Detect credit fraud more accurately, leveraging generative AI to enrich training data for machine learning detection algorithms.
Insurance Fraud Detection
Detect insurance fraud more accurately than traditional approaches to accelerate remediation and reduce losses.
Financial modeling with Sumitomo Mitsui Trust Bank
Sumitomo Mitsui Trust Bank is developing Industrial Generative AI applications to simulate financial scenarios, enhancing the accuracy of derivative pricing and value adjustments. This innovation empowers traders and investors to make faster, more precise decisions, enables risk managers to perform advanced stress tests, and helps derivative traders hedge their portfolios more effectively.
How can these solutions work for your enterprise?