Financial institutions (FIs) are undergoing rapid transformation, powered in part by the capabilities of AI and advanced language models like ChatGPT. As FIs look for ways to stay competitive, accelerate product deployment, and enhance service offerings, AI-first strategies have emerged as the pathway forward. This blog delves deeper into ChatGPT specifically, how it works, its use cases for FIs, and some ways that PortX is pioneering its integration into financial services.
If you haven’t done so, read our recent blog about AI-first integration: AI and ChatGPT Accelerate Banking Integration and Fintech Deployment
What is ChatGPT?
ChatGPT, the brainchild of OpenAI, is an advanced language model designed to simulate authentic human interactions. Trained on a massive dataset comprising diverse sources of human-generated text, ChatGPT is built upon these key aspects:
- Language Generation: Crafting coherent and contextually apt responses.
- Conversational Aptitude: Holding intricate dialogues, making it a valuable asset in customer interactions.
- Natural Language Understanding: Recognizing and adapting to nuances and colloquialisms.
- Context Retention: Ensuring continuity in interactions by remembering prior exchanges.
How does ChatGPT work?
Input and Output: ChatGPT operates by accepting textual prompts from users and generating appropriate responses. This interaction can range from simple Q&A sessions to detailed, multifaceted conversations.
Understanding Language: At its core, ChatGPT is trained on a large dataset filled with varied human-generated text. This training allows it to not just generate text, but to understand context, sentiment, and nuances, making its responses feel incredibly human.
Model Mechanism: Using a series of transformers, ChatGPT navigates the intricacies of language. These transformers are the heart of its operations, handling the heavy lifting of encoding (interpreting the user’s input) and decoding (crafting a fitting response). This ensures seamless conversation flows and context retention across exchanges.
Learning from Data: Unlike some static systems, ChatGPT benefits from continual learning. With every interaction, it refines its knowledge, adapts to new contexts, and improves its conversational abilities. This dynamic adaptability ensures that it stays relevant and accurate.
Conversational Context: One of ChatGPT’s standout features is its memory. Unlike traditional bots that treat each query in isolation, ChatGPT retains context. This means it can hold longer, meaningful conversations, recall prior interactions, and provide coherent, connected responses over a dialogue.
ChatGPT Models: A Glimpse into Capabilities
For FIs, understanding the different ChatGPT models and their capabilities is crucial. It determines the cost, capacity, and extent of integration. The right model ensures optimal performance, budget alignment, and a tailored fit for specific tasks.
|Name||Family||Price per Token||Max Tokens Available||fine-tuning?|
|GPT-4 32k context||gtp-4||USD 0.0600 (p) USD 0.1200 (c)||32768||No|
|GPT-4 8k context||gtp-4||USD 0.0300 (p) USD 0.0600 (c)||8192||No|
|gpt-3.5-turbo||GPT-3.5||USD 0.0020||4096||No (current)|
Business Use Cases for FIs
The transformative potential of ChatGPT for FIs is limitless. From streamlining loan and mortgage operations to enhancing the efficiency of contact centers, AI integration can revolutionize traditional banking functions, making them more efficient and customer-centric. These opportunities include but are not limited to:
- Customer Support: Offering real-time aid and addressing common queries.
- Content Generation: Crafting blogs, product blurbs, and more.
- Data Analytics: Interpreting complex datasets to glean insights.
- Decision Support: Assisting in formulating strategies by providing relevant insights and simulations.
Here’s a snapshot of just some of the use cases we’re currently having conversations with FIs:
- Lending Solution Integration
- Streamlined Loan Origination and Onboarding
- Efficient Loan Processing & Funding
- Comprehensive Loan Servicing
- Addressing Mortgage Defaults
- AI-enhanced Loan Approvals
- Seamless Online Banking Solutions
- Remote Deposit Capture Systems
- Efficient Wire Transfers
- Check Adjustment Processes
- Implementing Check Holds
- Exception Processing Systems
Contact Center Solutions:
- Address Changes Made Easy
- Efficient Payment Processes
- Quick Password Resets
- Automated Data Entry Across Platforms
- Advanced Chatbots and Voicebots for Enhanced Customer Support
Get in Touch
Want to learn more about integrating ChatGPT in your FI operations? We have daily conversations with FIs like yours and would love to help you unlock the power of AI. Just start a conversation with our team of humans today.