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Digital bank Zopa, alongside Juniper Research, has unveiled insights into the transformative role of Generative Artificial Intelligence (GenAI) in the UK banking sector. Anticipated to play a pivotal role, British banks are set to invest over £1.8 billion in GenAI by 2030. This technological leap aims to enhance staff productivity, reduce operational costs, and elevate the user experience, highlighting the growing relevance of Large Language Models (LLMs) in addressing the ever-evolving customer needs.
Significant outcomes are already coming from this investment. In five short years, productivity gains from GenAI deployments are predicted to save approximately 187 million labour hours, with a hefty ~82% derived from back-office and administrative efficiencies. Expected financial gains point to around 50% of cost savings in back-office operations, projecting a £1.8bn saving by 2030, a 100% return on investment as saved expenses mirror the total funds channelled into GenAI.
This technological prowess also unveils an opportunity to reskill and upskill industry professionals in AI-related disciplines. According to Peter Donlon, Chief Technology Officer at Zopa Bank, GenAI represents a fundamental shift in computing, offering pathways to revolutionise productivity, software creation, and decision-making processes. He emphasised Zopa's long-standing operation of machine learning well before LLMs gained traction, viewing GenAI as a fundamental capability rather than a mere add-on.
Clare Gambardella, Chief Customer Officer, views GenAI as a groundbreaking shift that redefines the customer experience. "At Zopa, innovation has always been in our DNA, and with GenAI, we're focused on turning that innovation into meaningful, trusted value for customers. We’ve always believed in using technology to remove complexity and put people in control of their finances. With GenAI, we have the opportunity to continue on that journey - making the customer experience more intuitive, personalised, and intelligent than ever before for millions across the UK.”
Nick Maynard, VP of Fintech Market Research, identifies the UK banking sector at a pivotal crossroad where GenAI will redefine banking operations. While digital-only brands like Zopa are well-equipped for this AI shift, the broader sector faces risks and opportunities in skills transformation, aiming for a refined customer banking experience.
Despite promising advances, GenAI's integration raises substantial concerns about job displacement. By 2030, nearly 27,000 roles, constituting 10% of UK banking jobs, may face changes, primarily impacting high street banks. In response, Zopa has championed JOBS 2030, an ambitious initiative to reskill 100,000 banking professionals in AI disciplines within the next seven years. This programme starts with training fintech engineers, analysts, and operational leads, complemented by the upcoming GenAI Engineering Programme and Zopa Coding Academy.
Meanwhile, with every Zopa employee having access to GenAI tools like ChatGPT, combined with advanced OpenAI-led training, these initiatives enhance Zopa's expanding AI capabilities. Recent rollouts include custom GPTs for efficient customer query handling and vulnerability detection. Soon, an AI Voice Assistant will further revolutionise customer interactions at Zopa.
