AAM’s Largest Bank Saves $50M Annually with Advanced AI

Bank presence in Asia, Africa, and 66 more countries

About the Company

Services: Offers a wide range of financial..

Market Presence: Operates across Asia, Africa, Middle East and 65 more locations.

Revenue: $14 billion (2022)

Employees: 85,000

Challenges faced

High operational costs stemmed from extensive manual processes, while inefficient credit risk management led to significant nonperforming loans. Limited customer engagement drove up service costs, and the bank faced increased vulnerability to fraud and security threats. These challenges strained the bank’s resources and impacted profitability. Addressing these issues became critical for sustainable growth and improved financial health.

AI Implementation Strategy

AI-Powered Credit Risk Management

Challenge: High levels of nonperforming loans.
AI Solution: Deployed predictive analytics to assess credit risk, resulting in a 30% reduction in nonperforming loans. AI models continuously monitored borrower behavior, allowing proactive management of potential risks.
Impact: Reduced credit losses, improved asset quality, and saved $10 million annually.

Operational Efficiency through Automation

Challenge: High costs and inefficiencies in back-office operations.
AI Solution: Implemented robotic process automation (RPA) for routine tasks, reducing processing times by 40% and associated costs.
Impact: Streamlined operations, minimized manual errors, and saved $12 million annually.

Enhanced Customer Experience

Challenge: High service costs due to extensive manual customer service operations.
AI Solution: Deployed AI chatbots and virtual assistants to handle customer inquiries, reducing call center workload by 50%. AI-driven insights personalized customer interactions, increasing satisfaction and retention rates.
Impact: Improved customer engagement, reduced operational costs, and saved $8 million annually.

Advanced Fraud Detection

Challenge: Increased fraud and security threats.
AI Solution: Utilized machine learning algorithms for real-time fraud detection, reducing fraud losses by 25%. AI systems adapted to new fraud patterns, enhancing overall security.
Impact: Enhanced security measures, reduced financial losses from fraud, and saved $5 million annually.

Compliance and Regulatory Management

Challenge: High costs and complexity associated with regulatory compliance and reporting.
AI Solution: Implemented AI-driven compliance management systems to automate regulatory monitoring and reporting, ensuring timely and accurate compliance with all relevant regulations.
Impact: Reduced compliance-related costs, minimized risk of regulatory fines, and saved $5 million annually.

Facility Management

Challenge: High occupancy and maintenance costs.
AI Solution: Deployed AI-powered facility management systems to optimize energy usage, reduce maintenance costs, and manage space utilization more efficiently.
Impact: Reduced occupancy costs and saved $5 million annually.

Data Processing and Management

Challenge: High costs due to manual data processing.
AI Solution: Leveraged AI for data processing tasks to reduce errors, enhance accuracy, and improve decision-making.
Impact: Improved data management efficiency and saved $5 million annually.

Results

Total Annual Savings: $50 million
Improved Efficiency: Significant reductions in processing times and manual errors.
Enhanced Customer Experience: Increased satisfaction and retention rates.
Reduced Credit Losses: Improved asset quality and proactive risk management.
Increased Security: Enhanced fraud detection and prevention measures.
Optimized Compliance: Reduced regulatory risks and associated costs.
Better Data Management: Improved accuracy and decision-making.

Project Highlights

24 weeks from kick-off to production-ready application
7 different data sources
72,000 applications processed, 4 years of history from 20 different countries
1,200+ fields per application
1,000+ machine learning features
19 categories, ~100 typologies to provide interpretable, actionable insights
$50 million expected annual economic revenue benefit

Solution Architecture

Data Integration and Processing: Integrated data from 7 sources using Apache Kafka and Nifi, processed with Hadoop and Spark, stored in AWS S3 and Google Cloud Storage.
AI and ML Implementation: Developed AI models with TensorFlow and PyTorch, deployed on AWS SageMaker and Google AI Platform, enhancing credit risk, customer service, and compliance.
Real-Time Monitoring: Continuous monitoring with Prometheus and Grafana, providing actionable insights via CRM systems and IoT-enabled facility management.

For more technical details feel free to book a call with our AI engineers.