Lucinity, the leader in AI for financial crime prevention, estimates that the recent advancements in generative AI can save the banking industry $27 billion annually in training and staff costs.
Generative AI has the potential to significantly enhance the skills of less-experienced workers, improve the quality of their output, and result in substantial cost savings for the banking sector.
Lucinity’s analysis suggests that a Tier 1 bank has the potential to achieve annual savings ranging from $15 million to $36 million on training and recruitment expenses. This cost reduction is attributed to the more efficient onboarding process for less experienced employees, who can be rapidly upskilled. As a result, these employees are able to contribute more effectively and with higher quality, delivering a 40% increase in output value to the business.
Trials with Lucinity’s customers demonstrated that simple, empathetic AI systems that support lower-level compliance teams in banks can address skills gaps and reduce staff turnover as compliance analysts are empowered to carry out more rewarding investigating tasks.
This comes on top of potential productivity savings of $25 million a year by cutting the time of financial crime investigations from 2.5 hours to 25 minutes.
The enhancements in performance and support for novice compliance workers in the banking sector are attributed to Lucinity’s integration of Open AI’s advanced GPT-4 and GPT 3.5 technologies over the past year. This integration accelerated the development of Lucinity’s platform and its ability to support inexperienced compliance workers in banking.
Lucinity’s AI Copilot, known as ‘Luci,’ leverages this GPT technology to simplify the complexity of financial crime data by transforming it into easily interpretable visualisations, executive summaries, and comprehensive reports. This has proven instrumental over the last twelve months, equipping compliance teams with the tools to rapidly assimilate and act on critical information, thereby expediting their proficiency in analytical processes and enhancing their investigative competencies at an earlier stage.
“Our copilot turns everyday analysts into superhero investigators,” says Gudmundur Kristjansson (GK), CEO of Lucinity. “We’ve made Luci easy to use and instantly rewarding to the user, so they feel empowered soon after using it for the first time. It means compliance teams learn faster and quickly develop into more valuable case reviewers and investigators.”
“There is a lot of talk in AI circles about the need to upskill workforces to avoid them being replaced,” GK continues. “But we believe less-experienced workers can be elevated – upskilled by the AI itself – creating a partnership of human and machine that is more valuable to a business.”
Luci’s straightforward dashboard also eliminates the need to sift through disparate systems. Generative AI can summarise and explain relevant information, automate time-consuming tasks, and write detailed regulatory reports, among many other skills. This improves financial crime mitigation, lowers regulatory risk and enhances user experience.
The platform’s transformative role in championing “Faster, Smarter FinCrime Prevention through User-Centric AI” has been recognised by industry giants like Microsoft and Gartner, underlining Lucinity’s position as a leader in generative AI.
One of Lucinity’s customers, Visa’s cross-border solution, CurrencyCloud, has experienced these benefits first-hand:
Billy Pinder, Head of Transaction Monitoring at CurrencyCloud: “The Lucinity Platform has been a fundamental driver of efficiency in the team. Before implementing Lucinity, we had information from multiple data sources. Across all complex investigations, our analysts are now more capable of getting to the heart of the issue and understanding whether a particular pattern of behaviour is indeed suspicious.
“Luci will be a game-changer for us. Its ability to transform complex AI findings into actionable insights will empower our team to make faster, more informed decisions, saving valuable time and resources in our fight against financial crime.
The ability of generative AI to empower workers is backed up by significant studies, including an MIT report that proved “workers with the least experience can quickly improve at their jobs with the help of generative artificial intelligence” – and a Harvard Business School research paper, which concluded that generative AI “significantly increased performance and quality… increasing speed by more than 25%, performance as rated by humans by more than 40%, and task completion by more than 12%.”
Lucinity has now embarked upon a Series B round of funding, having established a strong product-market fit within the generative AI segment. Customers include a Tier 1 US bank and CurrencyCloud (Visa’s cross-border solution). Lucinity has raised over $ 25 million to date and now seeks further investment to shape its go-to-market plans and continue product development, ensuring it remains a leader in financial crime prevention.
