In the dynamic world of financial services, artificial intelligence (AI), particularly Generative AI (GenAI), has become the linchpin of transformative change, redefining the operational and strategic horizons of the banking sector. GenAI’s capacity for creating new, original content is not merely an incremental advancement but a change in basic assumptions that is propelling banking toward a future ripe with innovation and efficiency

GenAI models such as GPT, with its transformer architecture, mark a quantum leap from the AI of yesteryear, which primarily focused on understanding and processing information. Today, these models are the architects of text, images, code and more, initiating an era of unparalleled innovation in banking. The strategic deployment of GenAI is much more than a trend; it is a comprehensive reimagining of operations, product development and risk management, allowing banks to deliver personalized services and novel solutions while streamlining mundane tasks.

The evolution of AI in banking has been nothing short of revolutionary, moving from foundational concepts to the creation of sophisticated, innovative applications.

This transformation is apparent in the broad spectrum of available AI applications, from automated knowledge management to investment research and bespoke banking services, each underscoring the remarkable advancements and potential of GenAI. Major banks, especially those in North America, have been pioneers in this journey, making substantial investments in AI to spearhead innovation, talent development and operational transparency. Their investment strategies encompass a wide range of applications, including enhancement of fraud detection mechanisms and customer service chatbots. Their focus is on acquiring critical hardware, such as NVIDIA chips for AI processes, and making strategic investments in human and technological resources. The aim of refining existing processes is driving this strategic shift, combined with an ambition to explore and capitalize on high-impact AI use cases, balance potential benefits against risks, and scale innovative prototypes into robust solutions.

The Financial Services Industry has entered the Artificial Intelligence (AI) phase of the digital marathon, a journey that started with the advent of the internet and has taken organisations through several stages of digitalisation. The emergence of AI is disrupting the physics of the industry, weakening the bonds that have held together the components of the traditional financial institutions and opening the door to more innovations and new operating models. 

How Artificial Intelligence is Transforming the Financial Services 

AI is an area of computer science that emphasises on the creation of intelligent machines that work and perform tasks like humans. These machines are able to teach themselves, organise and interpret information to make predictions based on this information. It has therefore become an essential part of technology in the Banking, Financial Services and Insurance (BFSI) Industry, and is changing the way products and services are offered.

By Stanley White and John McCrank

TOKYO/NEW YORK (Reuters) - Asian shares and U.S. stock futures fell on Friday as record-breaking new coronavirus cases in several U.S. states stoked concerns that new lockdowns could derail an economic recovery, while investors looked forward to earnings season.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.76%. Australian stocks dropped 0.42%, while Japanese stocks declined by 0.4%.

Shares in China fell 0.72%, the first decline in more than a week, as investors booked profits on a surge in equities to a five-year high.

E-mini futures for the S&P 500 erased early gains to trade down 0.01%.

The Antipodean currencies fell and the yen rose as traders shunned risk and sought safe havens.

More than 60,500 new COVID-19 infections were reported across the United States on Thursday, the largest single-day tally of cases by any country since the virus emerged late last year in China.

That heightened concerns that renewed lockdowns could hurt the economic recovery.

The number of Americans filing for jobless benefits dropped to a near four-month low last week, data showed.

But investors remained cautious as the report also said a record 32.9 million people were collecting unemployment checks in the third week of June, supporting expectations the labor market would take years to recover from the COVID-19 pandemic.

"Weakness in financial stocks, with the bank sub-index down 2.5%, comes ahead of next week's Q2 reporting season that sees JP Morgan, Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) all report next Tuesday and following news that Wells Fargo is planning to cut 'thousands' of jobs starting later this year," said Ray Attrill, head of FX strategy at National Australia Bank (OTC:NABZY).

On Thursday, the Dow Jones Industrial Average fell 1.39% and the S&P 500 dropped 0.56%, but the tech-heavy Nasdaq rose 0.53% to its fifth record closing high in six days.

Mainland China shares fell on Friday for the first time since June 29. Shares had surged to the highest since 2015 on Thursday, fueled by retail investor enthusiasm and policy support, even as regulators cracked down on margin financing and as state media warned of market risks.

The rise in China's mainland equities has some similarities to the bubble there five years ago, but it is not yet close in scale, and prices could continue to inflate for some time, said Capital Economics economist Oliver Jones.

"That said, another boom-bust cycle in China's equities could have even greater knock-on effects for markets elsewhere than before, with foreign holdings far higher now than five years ago," he said.

Fueled by illegal margin lending, the 2015-16 market bubble saw the benchmark Shanghai index fall more than 40% from its peak in just a few weeks.

In the currency market, the yen edged up against the dollar and the euro as investors bought the traditional safe haven.

The Australian and New Zealand dollars, which are often traded as a liquid proxy for risk because of their close ties to China's economy, both fell against the greenback.

The Aussie also fell as local officials use lockdowns and border restrictions to contain a sudden increase in coronavirus cases.

U.S. crude fell 0.23% to $39.53 a barrel, while Brent crude edged 0.02% lower to $42.34 per barrel due to concerns about a long-term decline in global energy demand.

SYDNEY (Reuters) - Virgin Australia Holdings Ltd (AX:VAH) bondholders plan to propose an alternative deal to creditors to the purchase by Bain Capital agreed by the company's administrator, a lawyer for the bondholders said on Friday.

Singapore's Broad Peak Investment Advisers and Hong Kong's Tor Investment Management plan to put forward an alternative deed of company arrangement (DOCA) to a vote at a creditor's meeting next month, said Ian Jackman, a lawyer representing them.

"The administrators will no doubt put forward a DOCA that represents the Bain transaction at the second meeting of creditors," he said at a court hearing.

"We for our part will have an alternative DOCA….with a view to improving the return of creditors as well as ensuring the future viability of the company."

By Anthony Esposito

MEXICO CITY (Reuters) - Ford Motor Co on Thursday said new staffing restrictions imposed on plants producing car parts in the Mexican state of Chihuahua were "not sustainable," the latest sign U.S. automakers are still reeling from coronavirus lockdowns in Mexico.

Mexico is a key part of a wider international supply chain crucial to U.S. carmakers, many of which operate factories across the border in Mexico due to lower labor costs.

Chihuahua, where the state government has limited employee attendance to 50% in plants, is home to a Ford (N:F) engine plant and many auto parts producers.

U.S. ambassador to Mexico Christopher Landau on Thursday said the Dearborn, Michigan-based automaker may have to shut some U.S. car plants as early as next week if they fail to receive Mexico-produced engines.

Kumar Galhotra, president of Ford's Americas and International Markets Group, said the company had "several suppliers" operating under restrictions imposed by Chihuahua state.

"With our U.S. plants running at 100%, that is not sustainable," Galhotra said in an emailed statement.

"While we do not expect any impact to production next week, we are continuing to work with government officials on ways to safely and constructively resume remaining production," he said.

Mexico's federal government has given automakers, mining firms and builders, with activities deemed essential, the green light to restart work, though some states have implemented their own restrictions as the coronavirus pandemic rages on.

Landau said a senior Ford executive told him on Wednesday night about the company's concern over parts produced in Chihuahua state.

"They're saying that they're going to start shutting down factories in the United States as of next week if they don't get that rolling," Landau said, in a talk organized by the Atlantic Council.

Alejandra de la Vega, Chihuahua's minister of innovation and economic development, said she was in "constant contact" with Ford and spoke with a company executive Thursday morning, but did not specify what was discussed.

De la Vega said Chihuahua had created a traffic light system to allow different sectors to gradually reopen from lockdowns, but added it was a "balancing act" to protect both public health and the economy.

In May, when Mexico signaled it would delay the reopening of its factories, Mexican officials said their U.S. counterparts pushed for a speedy return, arguing that U.S. plants on American soil could not operate without them.

(This story corrects to fix typographical error in headline)

LONDON (Reuters) - Britain's retail industry on Friday urged UK and European negotiators to reach a post-Brexit trade deal, warning that without tariff-free trade, consumers face higher prices from next year.

The sector has already announced thousands of job losses due the coronavirus pandemic as wary shoppers stay away from the high street, and the next stage of the Brexit process poses a further challenge.

Britain left the EU in January and is currently in a standstill transition period with the bloc to give the two sides time to fix a new relationship in everything from trade to security.

Last week's round of talks was cut short, with both sides saying that, while they wanted an agreement, they had yet to overcome the gulf in positions that could see Britain leaving the transition period without a trade deal.

Four-fifths of UK food imports come from the EU and EU imports also play a major role in supply chains for fashion, homeware, and other retail sectors.

In May, the UK government published its new tariff schedule, which would apply from Jan. 1 2021 if a deal was not agreed.

Under the schedule, 85% of foods imported from the EU will face tariffs of more than 5%, including 48% on beef mince and 16% on cucumbers. The average tariff on food imported from the EU would be over 20%.

Given the highly competitive nature of retail, the industry could not absorb all these increased costs, meaning the public would face higher prices, the British Retail Consortium (BRC) said.

“Many UK shoppers experienced disruption in the run up to (coronavirus) lockdown; without a deal, the public may face an even bigger challenge at the end of the transition period," said Andrew Opie, the BRC's director of food and sustainability.

"With the clock ticking down to 31st December, the government must put consumers first and agree a deal that avoids tariffs and minimises the impact of non-tariff barriers."

UK retailers, already struggling with high rents, business taxes, tight margins and online competition, were particularly hammered by the lockdown and data shows shoppers are reluctant to enter stores even as restrictions ease.

By Svea Herbst-Bayliss

BOSTON (Reuters) - Cannae Holdings (NYSE:CNNE) and Senator Investment Group, which are trying to buy property data and analytics company CoreLogic Inc, have hired a proxy solicitor, a source familiar with the matter said on Thursday.

A proxy solicitor polls large shareholders on how they plan to vote on hotly contested corporate matters like mergers or proxy fights. Hiring one signals that Cannae and Senator are taking next steps to prepare for a potential fight with CoreLogic.

The source said the two firms tapped D.F. King two days after CoreLogic rejected their unsolicited $7 billion takeover bid.

Last month Cannae and Senator, which jointly hold an economic interest of roughly 15% in CoreLogic, proposed to buy the company, valued at $5.3 billion, for $65 a share. The stock has since risen past the offer price and closed at $67.54 on Thursday.

This week, Cannae and Senator said they stillhope to engage with the company but also said they could call a special meeting as soon as July 28 to replace the current board. CoreLogic said it "is open to all viable paths to increasing shareholder value" and that it is "willing to meet with Senator and Cannae."

Bank of America (NYSE:BAC) has said that it was sure it could arrange financing for the deal.

D.F. King has worked with Xerox (NYSE:XRX) in a hostile bid for HP (NYSE:HPQ), which was canceled because of the Covid-19 pandemic, Mantle Ridge in its investment in Aramark where the investment firm gained control of the board, and the Rice Brothers in their successful proxy contest at natural gas producer EQT Corp (NYSE:EQT).

Representatives for D.F. King, Cannae and Senator did not respond to requests for comment.

CoreLogic hired Innisfree as its solicitor, the company said earlier this week.