Unlocking the Future of Financial Services with IBM Consulting at Think London 2024

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In a world where financial services are evolving at an unprecedented pace, staying ahead of the curve is crucial. The recent IBM Think London event, IBM’s flagship UK event,  brought together industry leaders, partners, and clients to explore how cutting-edge technologies like generative AI and hybrid cloud infrastructure are transforming the sector. For IBM Consulting, the event underscored our mission to empower firms across the financial services industry by leveraging innovation to deliver lasting business value.

A Convergence of Innovation and Expertise

The IBM Think event provided a unique platform for decision-makers to meet industry experts, network with peers, and stay informed on the latest advances in generative AI and hybrid cloud technologies. These technologies, once seen as speculative, are now shaping the backbone of modern banking and financial services.

IBM CEO Nicola Hodson and IBM Senior Vice President Kareem Yusuf took  the stage to discuss the adoption of generative AI in business. They emphasised the need for an open, trusted technology architecture that supports a hybrid-by-design approach -enabling firms to scale AI use securely and efficiently across multiple IT environments. As they pointed out, the right combination of breakthrough technologies and deep expertise is essential to creating unique business value from AI today. This has never been more relevant in financial services, where efficiency, security, and compliance are paramount.

Generative AI: Unlocking Profitability and Innovation

AI is no longer a futuristic ideal; it’s a critical tool for growth. Generative AI assistants, such as those powered by IBM’s watsonx platform, are being deployed by leading financial institutions to enhance profitability, spur innovation, and drive revenue growth. These AI systems can rapidly analyse data to generate personalised insights and automate routine actions, freeing up human resources to focus on more strategic tasks.

IBM’s clients are already seeing significant results. For instance, Virgin Money’s implementation of AI-driven conversational assistants is a perfect example of the impact these technologies can have. With 6.6 million retail and business customers, Virgin Money needed a solution that would optimise customer service without sacrificing the personal touch that defines its brand. By integrating the “Redi” intelligent agent into the bank’s core systems, IBM helped Virgin Money drastically reduce call volumes and streamline customer support operations. Not only did this solution meet the bank’s goal of achieving a rapid return on investment, but it also led to a notable improvement in the bank’s Net Promoter Score (NPS).

The Power of AI + Hybrid Cloud for Financial Services

At Think London, a central theme was the synergy between AI and hybrid cloud, which has emerged as a powerful combination for organisations seeking to scale their operations and maintain agility. Hybrid cloud allows businesses to manage workloads across both public and private cloud environments, providing the flexibility and security needed to meet ever-evolving compliance standards in financial services.

For financial institutions, this hybrid approach to AI deployment is key to ensuring that AI initiatives don’t get stuck in pilot phases but instead move into full production environments. IBM’s hybrid cloud solutions are designed to do just that – support AI at scale while maintaining the governance, security, and compliance that are so critical in the financial sector. From speeding up customer response times by up to 40% with AI-driven assistants to enabling seamless integration with core banking systems, hybrid cloud is proving to be a cornerstone of digital transformation in banking.

Trust and Compliance in AI

The financial services industry is heavily regulated, and governance plays an essential role in ensuring that AI technologies are deployed responsibly. IBM has long been a leader in advocating for AI governance that ensures trust and compliance. During Think London, it was made clear that regulation should not be seen as a barrier but as an enabler of innovation. AI-ready architecture, underpinned by strong governance frameworks, allows firms to scale AI projects with confidence, ensuring they meet legal requirements while also addressing broader ethical concerns.

Rory Stewart, who also took the stage at the event, echoed these sentiments during his keynote on the broader societal implications of AI. Stewart offered a thought-provoking perspective on how financial institutions must not only leverage AI for growth but also prepare for the unintended consequences of its widespread use. As Stewart rightly noted, the rise of AI-powered cybercrime is one such challenge, making AI-driven cybersecurity an urgent priority for financial services firms.

Building the Future with IBM Partners

IBM’s leadership in AI and hybrid cloud is further strengthened by our strategic partnerships with technology leaders such as Microsoft and Amazon Web Services (AWS). These collaborations ensure that IBM Consulting can offer financial institutions a comprehensive set of tools to meet their unique needs, from cloud infrastructure to AI governance. At Think London, our partners were integral in discussions about how to create robust, scalable AI environments that drive real business results.

Real-World Impact: Virgin Money Case Study

Virgin Money’s journey illustrates how quickly AI can deliver value when paired with the right technology and expertise. Their conversational AI strategy, deployed initially within their credit card business, aimed to reduce call volumes for the bank’s human customer service agents while preserving the warmth and personality of the Virgin Money brand. IBM Consulting’s integration of the “Redi” intelligent agent not only reduced workloads but also exceeded the bank’s expectations in terms of return on investment, which was achieved in just a few months.

By automating routine tasks and providing faster responses, Virgin Money’s NPS score also saw a significant boost—proof that AI-driven initiatives can enhance customer satisfaction while driving operational efficiency.

Future-Proofing Financial Services with AI

The key takeaways from the IBM Think London event reaffirm IBM Consulting’s commitment to helping financial services firms navigate the complexities of digital transformation. As the event showcased, AI is more than just a tool for automating tasks – it is a driver of innovation, capable of reshaping the future of banking. Coupled with hybrid cloud technologies, AI offers the scalability, security, and flexibility needed to thrive in an increasingly competitive market.

The following key insights stand out from the event…

1. AI + Hybrid Cloud = A Growth Engine:
   The combination of AI and hybrid cloud technologies offers a powerful platform for growth and innovation in financial services.
2. AI Assistants Deliver Results:
   AI-driven assistants like IBM’s watsonx can boost customer response times by up to 40%, enhancing both customer satisfaction and operational efficiency.
3. AI-Ready Architecture Is Critical:
   For AI to scale effectively, firms need an AI-ready architecture that supports hybrid cloud environments while maintaining governance and compliance.
4. Governance Ensures Trust:
   Building trust through robust governance is essential for the responsible deployment of AI technologies in the financial sector.
5. Moving from Pilot to Production:
   The real value of AI is realised when organisations move from pilot projects to full-scale production environments. This is where IBM Consulting excels—helping financial institutions turn potential into performance.

Conclusion

At IBM Consulting, we understand that the future of financial services is being shaped by the intersection of AI, hybrid cloud, and trusted technology infrastructure. Our experience at IBM Think London only strengthens our resolve to help financial institutions unlock new opportunities, enhance profitability, and stay ahead of the competition. By embracing AI and hybrid cloud, financial services firms can not only meet today’s challenges but also build a foundation for sustainable growth in the years to come.

We are excited to continue this journey with our clients and partners as we work together to create a smarter, more efficient financial ecosystem.

Thank you to our partners at Microsoft and AWS for their invaluable contributions to this event and for helping us push the boundaries of what’s possible in financial services.

To explore our captured content from Think London 2024 – click here.