The Transformation of Financial Services through Hyper-Personalization by GenAI

The rise of generative AI (GenAI) is revolutionizing financial services by driving hyper-personalization and enhancing back-office productivity, as stated in Fintech News. According to Michael Haney, head of product strategy at Galileo Financial Technologies, combining machine learning and GenAI is creating a new era for financial institutions, enabling them to leverage data more effectively.

In a conversation with PYMNTS as part of the “What’s Next in Payments: Payments and GenAI” series, Haney noted that while many organizations are still adopting machine learning, the focus is now shifting toward generative AI to optimize productivity and operational efficiency. GenAI offers significant advancements, moving beyond the rigid rules engines of the past to modern deep learning models that can predict and create human-like responses.

Haney highlighted that AI has the potential to improve a wide range of processes, including client servicing, fraud defenses, and loan decisioning. Hyper-personalization is emerging as a natural outcome of AI’s ability to analyze vast amounts of structured and unstructured data, providing consumers with tailored recommendations for their payment choices.

“Consumers are often overwhelmed with the number of different ways to move money,” Haney explained, emphasizing the value of AI-powered engines in guiding users through decisions based on factors like speed, price, and risk.

While AI opens new possibilities, Haney cautioned that models must be carefully monitored to avoid bias. Looking forward, he predicted that specialized large language models will lead to even more exciting developments in financial services.