What is Generative Finance (GeFi)?

Since the launch of ChatGPT, Artificial Intelligence (AI) has become an important theme in the financial market. As a natural language generation model, ChatGPT has an advantage in the application of smart interaction and information processing, so that financial institutions can provide more efficient and convenient customer services. Generative Finance (GeFi) is a term for applying AI to the financial sector. While worldwide financial regulatory bodies encourage financial institutions to use fintech to provide reasonable and efficient financial services, they warn players of the potential risks at the same time. As they manage the relevant risks, financial institutions are accelerating the application of AI in different aspects under the global trend of innovation.

Firstly, AI can be applied to customer service to provide quick and accurate responses. Based on the customer’s inquiry, AI could instantly generate an appropriate and reasonable response. Compared to traditional live chat and ChatBot, AI could deliver smoother, friendlier and more natural customer service. This technology is changing the way traditional banks serve customers and enhancing the quality and efficiency of the whole industry.

On the other hand, AI can be used to improve and strengthen risk assessment. By learning the customers’ historical transaction data and capital flow as well as processing massive text data, AI could quickly generate risk assessment reports for financial institutions to make rapid and reliable decisions after inspecting. In fact, given the huge database that banks have, algorithms powered by AI could screen through numerous daily transactions to detect frauds with the help of machine learning and data analysis, in return improving financial regulatory compliance.

On the road to fintech and AI development, many financial institutions foresee more cooperation between banks and fintech companies instead of competition. Financial institutions themselves have been putting more resources into the investment and development of technology and AI. For example, iFAST Corp launched the iFAST Global Hub.ai in Malaysia which is a global digital centre providing technological support powered by AI to the whole iFAST group. The establishment of the centre signifies a shift in the Group’s strategy to leverage advanced technology, particularly AI, to strengthen the Group’s fintech capabilities, enhance operational efficiency, optimise workflow and improve scalability.

Compared to traditional banks, iFAST Global Bank embraces digital innovation to improve or even subvert traditional practices when it comes to providing a better customer experience. Our online banking services emphasize convenience by simplifying account management and providing better interest rates, hoping to benefit more customers.