The evolution of artificial intelligence in financial services is a journey spanning multiple decades, with its roots deeply embedded in traditional analytics and credit scoring systems of the mid-20th century. Machine Learning (ML), a cornerstone of modern banking technology, has been actively shaping financial services, building upon decades of algorithmic lending and risk assessment. The recent emergence of Generative AI has introduced new opportunities for financial institutions to enhance their service delivery and operational efficiency.
The impact of AI in financial services has been transformative in addressing the needs of Small and Medium-sized Enterprises (SMEs). Financial institutions are leveraging AI technologies across multiple domains; enhancing credit underwriting and risk management processes, creating personalised products and marketing strategies, and implementing process automation that significantly reduces operational costs while improving customer service efficiency.
Modern businesses increasingly operate through digital channels, from e-commerce marketplaces to cloud-based accounting systems and specialised business management tools. These platforms rapidly incorporate AI technologies, making sophisticated business management tools more accessible and user-friendly for SMEs. The convergence of AI capabilities with existing digital infrastructure is creating new possibilities for both financial service providers and their SME clients.
This was discussed at the roundtable “Leveraging AI: Enhancing efficiencies and greater customer engagement” held at the Global SME Finance Forum 2024. Moderated by Mathew Saal, Digital Specialist, IFC. The roundtable saw experts from finance and tech, present use cases while exchanging experiences from crucial challenges they faced and the solutions they have enlisted to broaden financial inclusion for SMEs, particularly in emerging markets. Participants include Stella Fraiha, Head of the Corporate Segment, SICREDI, Ketan Gaikwad, Managing Director and CEO, Receivables Exchange Of India Limited, Bahaa Khashogji, Head of MSME, BSF, Melis Özdeğirmenci, Senior Vice President of SME Marketing, Akbank T.A.Ş., Marcela Pinori, Executive Director of Commercial Solutions in Brazil, Visa, Eamon Scullin, Founder & President, Fern Software, João Tosin, CEO & Co-Founder, Celero, and Jorge Vargas Neto, Founder, Bhub.
This report examines how financial institutions are implementing AI solutions to better serve their SME customers and explores how businesses are integrating AI-powered tools into their operations.