Financial Services Use Cases - Artificial Intelligence (Gen AI and Agentic AI)
Our consulting firm aims to deliver a technology utility, where banks especially smaller regional banks, community banks and credit unions can access Artificial Intelligence (AI) powered solutions (Gen AI and Agentic AI) for various use cases. These tools are aimed at solving specific challenges and improving AI adoption at these institutions. AI is transforming community banking by delivering tangible benefits through enhanced efficiency, risk mitigation, revenue growth, and improved customer experiences.
Key Benefits for Community Banks:
• Efficiency and Cost Reduction: Automating processes and improving efficiency.
• Risk Mitigation: Enhancing fraud detection and ensuring compliance.
• Revenue Growth: Improving customer satisfaction, enabling personalized services, and optimizing marketing.
• Competitive Advantage: Offering innovative services and enhancing operational effectiveness.
Below is a breakdown of select use cases, with Gen AI examples and forward-looking agentic AI applications. The summary provides a high-level overview of the benefits of Artificial Intelligence (AI) for community banks, highlighting the potential for agentic AI to drive further transformation.
Select Use Cases in Community Banks:
Enhanced Customer Service
Intelligent Virtual Assistants and Chatbots: Deploy AI-powered assistants to handle inquiries, process transactions, and guide customers through complex processes. These systems reduce response times from days to minutes while providing 24/7 service.
Example: A customer receives instant mortgage pre-qualification through a conversation with the bank's AI assistant, which analyzes their financial profile and explains available options.
Agentic AI Opportunity: Banks are exploring autonomous service agents that proactively identify customer needs, schedule follow-ups with appropriate specialists, and prepare personalized solutions before the customer even requests assistance
Personalized Financial Guidance: Deliver tailored financial advice, investment strategies, and savings plans based on individual spending patterns and financial goals, increasing customer engagement and retention.
Example: The AI system analyzes a customer's recurring expenses and automatically creates a personalized savings strategy to help them reach their vacation fund goal by their target date.
Agentic AI Opportunity: Financial wellness agents that continuously monitor accounts, predict upcoming financial challenges, and autonomously implement approved micro-adjustments to spending and saving habits.
Credit Decisioning and Loan Underwriting
Enhanced Credit Decisioning: Incorporate alternative data sources to assess creditworthiness more accurately, expanding the qualified borrower pool and accelerating loan origination.
Example: A first-time homebuyer with limited credit history but strong rental payment records and stable income receives approval based on expanded assessment criteria.
Agentic AI Opportunity: Lending agents that could continuously monitor existing loans, identify refinancing opportunities beneficial to both customer and bank, and prepare personalized offers at optimal timing points within predefined parameters, expediting the process.
Automated Loan and Mortgage Underwriting: AI automates underwriting by analyzing data and risk factors, reducing costs and turnaround times.
Example: AI systems rapidly process mortgage applications by extracting data from credit bureaus, property records, and income verification documents, delivering near-instant underwriting decisions. • Implemented
Implemented Agentic AI: AI is utilized to automatically gather required documents from customers, and in some cases, to automatically order and review appraisals.
Risk and Compliance
Advanced Fraud Detection: Identify suspicious transactions in real-time by analyzing behavioral patterns and flagging anomalies, minimizing fraud losses and strengthening security.
Example: The system detects an unusual series of small transactions followed by a large withdrawal attempt, immediately freezing the account and alerting both the customer and security team.
Implemented Agentic AI: Some banks are using AI to automatically freeze accounts exhibiting high-risk behavior, pending customer verification.
Regulatory Compliance and Reporting: Streamline regulatory reporting with AI systems that continuously monitor transactions, generate required documentation, and adapt to evolving regulations, reducing non-compliance risks.
Example: The system automatically flags and documents transactions for Bank Secrecy Act (BSA)/ Anti Money Laundering (AML) compliance, preparing Suspicious Activity Report (SAR) filings with supporting evidence when suspicious patterns emerge.
Agentic AI Opportunity: Future regulatory intelligence agents that could monitor legislative changes across jurisdictions, assess potential impacts on the bank's operations, and update compliance protocols automatically.
Operational Efficiency
Intelligent Process Automation & Workflow Optimization: AI analyzes and optimizes internal workflows, automating repetitive tasks and streamlining processes, reducing operational costs and improving overall efficiency.
Example: AI analyzes the loan processing workflow, identifying bottlenecks and inefficiencies. It then automatically routes applications to the appropriate departments, prioritizes urgent requests, and alerts staff to potential delays, reducing processing time.
Implemented Agentic AI: AI-driven systems are being used to automatically categorize and prioritize incoming emails and customer service requests, routing them to the appropriate teams for faster resolution. AI is also used to automate the generation of daily, weekly, and monthly reports, freeing up staff to focus on more strategic tasks.
Agentic AI Opportunity: Future agentic AI could autonomously redesign entire internal workflows based on real-time data analysis, proactively identifying and resolving inefficiencies. It could also manage and optimize resource allocation across departments, ensuring that tasks are assigned to the most appropriate personnel and resources
Document Processing and Automation: Automate extraction and analysis of information from loan applications, financial statements, and KYC documents, reducing manual workload, errors, and processing time from days to hours
Example: A small business loan application with multiple financial statements is processed in hours instead of days, with key risk factors automatically highlighted for the underwriter. AI systems extracts key data from loan applications and financial statements, automatically populating bank systems.
Implemented Agentic AI: AI-driven systems automatically route documents for approval based on predefined workflows, speeding up processing times.
Predictive Resource Management: Optimize capital allocation and cash flow with AI forecasting tools that suggest capital management strategies, enhancing financial planning.
Example: The system predicts seasonal cash demand increases in agricultural communities during harvest season, allowing the bank to adjust liquidity positions beforehand.
Agentic AI Opportunity: Treasury management agents that could dynamically rebalance the bank's portfolio based on real-time economic indicators, interest rate movements, and projected customer activity.
Revenue Growth and Marketing Insights
Personalized Product Recommendations & Cross-Selling: AI analyzes customer financial behavior and preferences to deliver highly personalized product recommendations and cross-selling opportunities, increasing revenue through targeted offers and improved customer engagement.
Example: AI identifies a customer who consistently maintains a high checking account balance and frequently transfers funds to a brokerage account. The system then automatically recommends a premium wealth management service or a high-yield savings account, tailored to their financial profile.
Agentic AI Opportunity: Agentic AI could autonomously initiate personalized conversations with customers, presenting relevant product offers and answering questions in real-time. For instance, if a customer's spending patterns indicate a potential need for a small business loan, the AI could proactively schedule a consultation with a loan specialist and provide initial loan information.
Targeted Marketing Automation: Generate personalized marketing campaigns with optimal timing and messaging based on customer behavior analysis, increasing response rates and improving marketing ROI.
Example: Generate targeted email campaigns based on customer profiles who recently searched for college information on the bank's website receives targeted information about education savings accounts and student loan options.
Agentic AI Opportunity: Campaign orchestration agents that design, test, and optimize marketing initiatives across channels, incorporating real-time performance data to maximize engagement and conversion rates.
