Generative AI has diverse applications, ranging from art and e-commerce to science. It will also become relevant for the insurance and finance industry in the long term.

Artificial intelligence (AI) is becoming one of the key technologies of our time and is already having a profound impact on many industries. Implementing AI technologies also offers enormous potential for innovation and new standards for the future of the insurance and financial sector. AI will be important for transforming and optimizing business processes. It will also help improve banking and insurance services and increase their efficiency.

What is Generative AI

Generative AI (Generative Artificial Intelligence) is a form of artificial intelligence that can create content such as text, images, music, and videos. Previous AI systems recognize patterns in existing data and make decisions based on them. Generative artificial intelligence, on the other hand, creates new content from existing data. Advanced machine learning technologies, particularly deep learning, are used for this. This sub-area is based on artificial neural networks trained to analyze large amounts of data and recognize complex patterns.

Generative AI has diverse applications, ranging from art and e-commerce to science. It will also become relevant for the insurance and finance industry in the long term.

AI as a competitive factor in the finance and insurance industry

Insurance companies and banks are under pressure: new competitors, such as fintechs, are entering the market and offering their customers innovative and digital solutions. At the same time, digitalization is influencing people’s usage behavior and, thus, customer needs.
The insurance and financial sectors are challenged by developing digital business models and processes. AI will become a key competitive factor in the future.

Why is AI important in the finance and insurance industry

The implementation of artificial intelligence at banks, fintech, and insurance companies is crucial for several reasons:

  • Automation: AI enables the automation of many manual and time-consuming processes. As a result, it helps to increase efficiency significantly.
  • Data preparation: Artificial intelligence can evaluate large volumes of data from banks and insurance companies. This enables it to derive specific, customer-related measures.
  • Cost reduction: The automation and optimization of processes through AI reduces operating costs in the insurance and financial sectors.

 

These are the opportunities offered by AI in the finance and insurance industry

Artificial intelligence in the finance and insurance industry opens up many potential applications.
Sales optimization and personalization

AI creates customized offers for customers of insurance companies, banks, and fintechs, such as tariffs that are individually tailored to them. Machine learning models analyze customer data and predict customers’ needs and wishes. Such personalized offers increase the probability of closing a sale and improve customer satisfaction.

Risk assessment and claims management

By using AI, insurance companies are able to assess risks and process better claims more efficiently. AI models analyze historical data and current information to determine a customer’s risk precisely. This approach makes it possible to set fair and appropriate premiums.

Fraud detection

AI algorithms can analyze large amounts of transaction data in real-time and identify unusual patterns that indicate fraudulent activity. Thus, banks and fintechs can detect and prevent fraud attempts and minimize financial losses.

Churn Prediction

Churn prediction is an advanced analysis in the insurance and financial sector. It uses artificial intelligence to predict which customers are likely to churn. By analyzing customer data, AI can identify patterns that indicate imminent churn and suggest proactive measures to retain customers.

Financial analysis and forecasts

In banking, AI supports the analysis and forecasting of market developments. By processing large volumes of data, AI models can predict future trends, enabling them to make well-founded investment decisions in the financial sector.

Customer portals and applications

Modern AI-supported online portals are user-friendly interfaces for insurance company and bank customers. They eliminate the need to visit a bank branch or insurance office.

Apps already available in the financial and insurance sector are not necessarily user-friendly, and some functions are even very cumbersome:

  • Complicated verification process
  • impractical user processes
  • laborious operation

For insurance companies, banks, and fintechs, AI offers a great opportunity for improvement in this area. Their integration ensures automated workflows and continuous optimization of the customer portals – for the best possible user experience.

Customers can digitally …

  • manage their contracts
  • submit damage reports
  • process payments
  • receive personalized offers


Chatbots

Chatbots are already widely used for direct customer communication. They help to deal with a high volume of inquiries. An AI-supported chatbot can process various customer concerns around the clock, relieving employees, optimizing customer service, and reducing costs.

Robo-advisors and asset management

Robo-advisors are automated systems that use algorithms to provide personalized financial advice and portfolio management services. They assess investors’ risk profiles, financial goals and market conditions. Based on this, they make suitable investment recommendations and create diversified portfolios. In this way, banks and fintechs can use AI to make asset management more cost-effective and accessible.

Digital identity management

Artificial intelligence and blockchain in banking manage digital identities securely and verifiably. A blockchain is a decentralized database that chronologically encrypts transaction information in a block. Personal information is reliably protected against manipulation. Customers retain control over their data, and companies receive the information they need from customers. The technologies facilitate credit scoring, and help simplify banks’ and fintechs’ lending processes.

How Gini uses AI to optimize financial and insurance products

At Gini, we recognized the possibilities of generative AI early on and developed innovative products for our clients in the insurance and financial sectors. Our information extraction and digitization from documents is market-leading. It facilitates the creation of invoices and the processing of payments. Using state-of-the-art OCR technology and self-learning AI, we transform unstructured data into structured data in real-time. For example, Gini AI reads payment information from documents and fills it in automatically in the banking app.

The “Gini Story” is always at the heart of our software company: we focus specifically on the user and use AI to map clear and optimized processes. This is how we make the lives of insurance and banking customers simple and smart.
Millions of customers have used our applications for banks and insurance companies daily since 2011.

Insurance solutions from Gini

Gini’s SaaS solution turns insurance apps into a modern digital headquarters. This fits easily into the new digital everyday life, which particularly appeals to young people.

  • Mobile document capture: Our AI-supported solution makes mobile document capture fast and secure. It extracts all relevant invoice information and the bank without errors and prepares it for payments. 
  • Sorted submissions: Users can easily make submissions via the insurance app. Both invoices and submissions are collected and sorted by status. 
  • Uncomplicated payment: With in-app payment, users can pay bills when and where they want – and even seamlessly with their own banking app. Gini Pay Connect makes it possible. Our Gini AI connects the insurance app with the banking app with a single click and based on mobile receipt capture. Payments are processed seamlessly – a clever solution for what is often the biggest pain point for policyholders.

Banking solutions from Gini

Thanks to Gini, every bank becomes a digital companion on your smartphone. 

  • Gini Pay photo payment: The solution transforms conventional mobile banking into smart banking. Gini Pay enables photo payments with just a few clicks and in just a few seconds. Users no longer have to type in recipient data; instead, Gini AI extracts all invoice information from the document and automatically creates the transfer.
  • Gini Pay Request-to-Pay: In retail, payments are often processed via third-party providers. Gini Request-to-Pay connects the house banks directly with retailers. A merchant’s payment request is pushed directly into the banking app, where customers can pay with a single click. Hidden fees and uncertainties when paying via payment services are now a thing of the past.

We take your information security seriously

If financial and insurance companies offer online services, they must comply with strict regulations and protect their customer information best. Gini complies with legal standards regarding your information security thanks to extensive measures. 

Our measures include strict controls to ensure that sensitive data is always protected. Regular security audits and certificate checks ensure the integrity, confidentiality, and availability of all customer information. We work continuously to identify and minimize potential security risks, which is how we ensure the security of our products and your data.

Author Ambra Rehm

Ambra Rehm

Senior Content Marketing Manager at Gini since 2023. Passionate about Content Marketing and SEO strategies for Software and AI solutions.

At Gini, we want our posts, articles, guides, white papers and press releases to reach everyone. Therefore, we emphasize that both female, male, and other gender identities are explicitly addressed in them. All references to persons refer to all genders, even when the generic masculine is used in content.