ServiceNow AI Agents for Banking Financial Operation

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ServiceNow AI Agents for Financial Services Operations (FSO)

Now Assist is a growing cross-platform family of generative AI (Artificial Intelligence) features, which are tasks that a large language model (LLM) can perform. Generative AI features are based on the initial training and architecture. Some of the generative AI features that are currently being offered are:

Case or incident summarization
Chat summarization
Code generation
Banking use case
Playbook generation

As the financial services sector continues to struggle with legacy systems, regulatory compliance, and cybersecurity threats, the need for efficient and customer-centric solutions has never been more pressing.

This is where ServiceNow's Now Platform solution comes in – an AI-powered platform designed to revolutionize the way banks and financial institutions operate. By automating routine tasks, streamlining processes, and providing personalized customer engagement, Now Assist is empowering financial services organizations to transform their operations, reduce costs, and drive growth.

With its ability to integrate seamlessly with existing systems, ServiceNow Agentic Platform is helping banks and financial institutions enhance customer experience through personalized, omnichannel engagement.

Framework

Now Platform is a conversational AI platform that provides automated customer support and service management solutions. Here is a brief overview of its framework:

Natural Language Processing (NLP) Engine: Now Platform uses a proprietary NLP engine to analyze and understand customer inquiries, sentiment, and intent.
Intent Identification: The NLP engine identifies the intent behind the customer's query, categorizing it into specific topics or issues.
Knowledge Graph: NowAssist has a vast knowledge graph that contains a repository of answers, solutions, and responses to common customer queries.
Contextual Understanding: The platform uses contextual understanding to analyze the conversation history and provide personalized responses.
Integration Layer: Now Platform integrates with various systems, such as CRM, ticketing systems, and other backend applications, to fetch relevant data and provide accurate responses.

framework-of-nowassist Figure: Framework of NowAssist

ServiceNow Agentic Platform in Banking and Financial Operations

The rise of AI in the financial industry has transformed the business landscape, and the NowAssist solution is at the forefront of this revolution. In this blog, we will discuss how the NowAssist solution is being used and deployed in the banking and financial sector, utilizing the power of Generative AI.

AI and Credit Decisions

Now Assist's AI-powered credit scoring solution is transforming the way lenders assess potential borrowers. By utilizing the power of Generative AI, this innovative solution provides a faster, more accurate, and more comprehensive assessment of creditworthiness. Unlike traditional credit scoring systems, Now Assist's solution considers a wider range of factors, enabling lenders to make better-informed, data-driven decisions.

Overview

Now Assist's credit scoring solution utilizes Generative AI to analyze a vast array of data points from various sources, including:

Traditional credit data (e.g., credit reports, payment history)

Alternative credit data (e.g., social media, online behavior, mobile phone data)

Customer-provided data (e.g., income, employment history)

This AI-powered mechanism is based on complex and sophisticated rules, allowing lenders to distinguish between high-risk applicants and those who are creditworthy but lack an extensive credit history. Another benefit of the AI-powered mechanism is objectivity. Unlike human beings, machines are not likely to be biased, which is crucial in financial app development. Digital banks and loan-issuing apps use machine learning algorithms to evaluate loan eligibility and provide personalized options.

how-credit-score-is-calculated Figure: How credit score is calculated

Benefits

Improved Accuracy: NowAssist's AI-powered credit scoring solution provides a more accurate assessment of creditworthiness, reducing the risk of default and enabling lenders to make better-informed decisions.

Objectivity: Unlike human beings, machines are not prone to bias, ensuring that credit-scoring decisions are fair and unbiased.

Comprehensive Assessment: The solution considers a wider range of factors, including alternative credit data, to provide a more comprehensive assessment of creditworthiness.

Faster Decision-Making: Now Assist's solution enables lenders to make faster credit decisions, improving the overall customer experience and reducing the time-to-approval.

Personalized Options: The solution uses machine learning algorithms to provide personalized loan options tailored to the individual borrower's needs and credit profile.

Risk Management & Privacy

NowAssist's risk management and privacy solution is designed to help banks and financial institutions detect and prevent fraudulent activities while ensuring the security and privacy of sensitive customer data. By utilizing AI-powered algorithms and robust security measures, NowAssist provides a comprehensive risk management and privacy framework that enables financial institutions to mitigate risks, protect customer data, and maintain regulatory compliance.

Overview

NowAssist's risk management and privacy solution is built on a robust architecture that combines AI-powered algorithms with advanced security measures to detect and prevent fraudulent activities while ensuring the security and privacy of sensitive customer data. The solution consists of the following components:

risk-management-using-ai Figure: Risk management using AI

AI-powered Risk Detection: AI-powered algorithms analyze vast amounts of data to identify patterns, detect anomalies, and prevent fraudulent activities.

Data Encryption: All communication between NowAssist and external systems is encrypted using industry-standard protocols (such as TLS/SSL) to ensure confidentiality during transmission.

Access Control: Role-based access control (RBAC) restricts access to authorized personnel only, adhering to the principle of least privilege.

Audit Trails: Comprehensive audit logs capture user interactions, system events, and data changes to ensure compliance, incident investigation, and accountability.

Benefits

NowAssist's risk management and privacy solution offers several key benefits to banks and financial institutions, including:

Enhanced Risk Detection: AI-powered algorithms detect and prevent fraudulent activities, reducing the risk of financial losses and reputational damage.

Improved Data Security: Robust security measures, including data encryption, access control, and audit trails, ensure the confidentiality, integrity, and availability of sensitive customer data.

GDPR Compliance: NowAssist's GDPR compliance ensures that financial institutions meet regulatory requirements, avoiding fines and reputational damage.

Enhanced Customer Experience

NowAssist's AI-powered customer service solution is designed to provide personalized support to customers, making it easier for them to manage their finances. By using AI-powered chatbots and digital assistants, NowAssist enables customers to plan and execute short- and long-term tasks, from paying bills to preparing tax filings.

Overview

NowAssist's AI-powered customer service solution consists of the following components:

AI-powered Chatbots: AI-powered chatbots provide 24/7 customer support, answering frequent queries and resolving common issues.

Digital Assistants: Digital assistants are personalized AI-powered assistants that can plan and execute short- and long-term tasks, such as paying bills, preparing tax filings, and more.

Task Automation: The solution automates routine tasks, freeing up customers' time to focus on more important financial decisions.

Personalized Recommendations: The solution provides personalized financial recommendations based on customers' financial data and goals.

Benefits

NowAssist's AI-powered customer service solution offers several key benefits to customers, including:

Personalized Support: AI-powered chatbots and digital assistants provide personalized support, making it easier for customers to manage their finances.

Increased Efficiency: Task automation and digital assistants save customers time, enabling them to focus on more important financial decisions.

Improved Financial Management: The solution provides personalized financial recommendations, enabling customers to make informed decisions about their financial lives.

Reduced Errors: Automation reduces the risk of human error, ensuring that tasks are completed accurately and efficiently.

Key Benefits of NowAssist

Frictionless Client Experiences: With NowAssist, banks can deliver immediate and convenient client experiences. Whether it is handling inquiries, resolving issues, or providing personalized aid, the AI-powered chat and web interfaces streamline interactions.

Innovation at Scale: Now Assist operates as a single system of action, allowing banks to innovate at scale. It integrates seamlessly with existing processes and core systems, enabling rapid adoption of modern technologies and practices.

Digitization of Siloed Processes: Banks can break down silos by digitizing processes across functions. NowAssist connects employees, functions, and core systems, ensuring a cohesive approach to operations.

Risk Management and Compliance: Real-time monitoring and automation help effectively manage risk, compliance, and environmental, social, and governance (ESG) aims.

Real-World Applications of ServiceNow Agentic AI in Financial Services

Lloyds Bank Group utilized NowAssist to revolutionize nine critical processes, resulting in considerable time and cost savings. The platform’s intelligent frameworks simplify complex workflows and dispute resolution and is diligently working to automate routine tasks with the power of Generative AI as:

Overall, the payment-in error process went from being 100% manual in the back office to 72% automated, requiring much less human interaction.

Every failed payment was manually handled in the back office to determine the transaction's eventual outcome. In just 12 weeks (about 3 months), process automation was introduced, which has resulted in 91%+ of these exceptions being automatically resolved.

Final Insights on the Impact of ServiceNow Autonomous Agents in Banking and Finance

In conclusion, NowAssist solution is revolutionizing the banking and financial operations industry by using AI, ML (Machine Learning), and robotic process automation. Its applications in credit decisions, risk management, efficiency, and customer experience are transforming the way financial institutions run, making them more efficient, secure, and customer-centric.

The future of AI in financial services looks promising. With increased transactional and account security, especially with the adoption of blockchains and cryptocurrency, transaction fees might be drastically reduced or eliminated due to the lack of an intermediary. The NowAssist solution is poised to play a significant role in shaping the future of financial services.

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