OpenAI recently announced the release of GPT-4, a language model which can respond to language-based queries with creative responses. And it’s almost certainly going to have a huge impact on the financial industry, according to Fintech Finance News.
Potentially, GPT-4 could be used to analyze patterns associated with fraud and improve customer service. It could also involve producing a chatbot that can make recommendations to customers based on a few factors: their account information, information on the internet, legal information, and breaking news. This could decrease the need for customer service agents, especially if the chatbots are comparable in terms of quality of information and convenience.
As part of the new release, Open AI has opened up their model to developers, who can—for a fee—create software that uses it as an engine for a number of efforts.
For financial institutions, new developments involving ChatGPT will likely come not from products developed in-house, but from collaborations with fintech companies that develop application programming interfaces (APIs) that FIs can use. APIs are modular software “add-ons,” which are designed to interface with a bank’s internal IT infrastructure, and allow banks to offer new financial products, such as buy now, pay later (BNPL), real-time payments, and digital wallets.
GPT-4 fits neatly into the trend of collaboration between fintech, tech, and banking companies.
Historically, banks were more likely to develop their payment systems in-house. Today, they’re increasingly partnering with fintech and tech companies to leverage their technology and expertise.
One of the key advantages of GPT-4 is its ability to personalize responses based on a user’s behavior and preferences. This means that financial institutions can offer more targeted and relevant services to their customers, which can help to improve customer satisfaction and loyalty. With the rise of voice assistants and smart speakers, customers may be shifting their behavior and interacting with financial institutions via new automated systems.