Lean and Smart: 3 Practical Generative AI Wins for Smaller Financial Firms

Introduction

Smaller financial institutions, such as accounting firms, investment companies, and credit unions, often struggle to compete with larger companies that possess vast resources. It's not only the resources but knowing what tool to use and when. These companies do not have Deloitte or PWC advising them or a dedicated tools team looking at their processes and how to gain efficiencies with AI.

All this said, THEY CAN leverage generative AI tools effectively even with limited means. Here are 5 simple use cases.

Use Case 1: Research

One of the primary challenges faced by smaller financial institutions is the vast amount of data that needs to be analyzed and made actionable. Generative AI can streamline this process at no cost! Better yet there is ZERO risk to your customer data because it does not involve this. AI can summarize key points from almost any type of information.

Tools like ChatGPT, Copilot, Notebooklm and Perplexity allow firms to analyze and produce timely and accurate data without dedicating excessive manpower to the task.

Think of the Big Beautiful Bill which has 1100 plus pages. Or the Gramm-Leach-Bliley Act which has near 90 pages. Importantly, ensure whatever questions you ask you personally verify the answers. This is called human in the loop.

Use Case 2: Personalized Financial Services

Generative AI can assist in creating tailored financial solutions for clients. Collaborate with ChatGPT and other models to analyzing GENERIC customer data. These systems can identify individual needs and preferences, enabling institutions to offer personalized recommendations on investment opportunities. Your customers are experimenting with this at home. As a firm, you should be competent in doing this. This level of personalization helps build customer loyalty and improves client satisfaction..

Use Case 3: Predictive Analysis

Whether the firm is a tax or Investment company, generative AI can be utilized for predictive analysis. The tools are solid when utilizing them to gauge market trends and make informed decisions. AI can suggest optimal investment strategies tailored to the risk appetite of individual clients. This sophisticated analysis can lead to better portfolio performance, tax reduction resulting in a very happy customer.

Conclusion

While larger financial institutions have all the resources, smaller entities can harness the power of generative AI to level the playing field. By implementing these three use cases to better serve their customers. Embracing innovation in the form of AI can position you for sustainable growth and success in the competitive financial landscape.