The Use of GenAI and Embedded Finance in Non-banking and Fintech Applications

Artificial intelligence (AI) technology is a key enabler in transforming financial services solutions. Today, financial services and fintech companies use AI and Machine learning techniques to build new-gen embedded finance applications for digital banking/ non-banking interfaces. McKinsey reported that embedded finance could transform how customers interact with financial products without relying on a banking interface during their buying journeys. AI, integrated with embedded analytics in finance, creates new avenues for financial as well as non-financial platforms to identify and solve challenges related to identity management, content delivery, KYC, fraud detection, and personalization. According to a recent survey by Finastra, financial institutions view Generative AI or GenAI as a major game-changer in the industry. Together with Banking-as-a-service (BaaS), and embedded finance, AI has occupied the center stage in offering the seamless, personalized experiences that customers increasingly demand. Our journalist and staff writer, Pooja Choudhary sat down with Chief AI Officer at Finastra, Adam Lieberman, to discuss how the company’s embedded finance and AI capabilities impact the modern Fintech marketplace.

Here’s the full interview with Adam.

Hi Adam, welcome to our AiThority.com TechBytes Interview Series. Please tell us about your tech journey.

Adam Lieberman: Throughout my career, I have been passionate about leveraging machine learning to build outstanding data products and assembling high-performing data science teams. These interests began early – my educational background is in mathematics and computer science, and I hold a master’s degree in Computer Science with a specialization in Machine Learning from the Georgia Institute of Technology.

Post-grad, experiences like co-founding Cappio, a financial research tool that lets users search for financial data and metrics through natural language search queries, and leading machine learning at NCR Corporation, a leader in transforming, connecting, and running technology platforms for self-directed banking, stores, and restaurants, provided me with critical hands-on learning that I now draw on in my current role.

Today, I serve as Head of Artificial Intelligence & Machine Learning at global fintech Finastra, where my team and I are laser-focused on driving innovation in financial services. One of my top priorities right now is working with our broader leadership team to identify strategies for scaling generative AI into our internal and external operations.

Finastra is a pioneering open platform that’s disrupting the financial industry, changing how financial software is developed and used. Could you highlight Finastra’s best-selling solution or idea?

Adam: At Finastra, we are focused on delivering cutting-edge technology and comprehensive product offerings to our financial institution customers. Innovation is always top of mind for us, and my team is particularly focused on identifying new ways to incorporate advanced technologies like artificial intelligence and machine learning into our software solutions. Our end goal is always to better enable financial institutions – from smaller institutions like community banks and credit unions, to some of the largest global banks – to enhance operational efficiency and security and drive digital transformation.

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We approach all new offerings with a customer-centric perspective, tailoring solutions to meet specific market requirements and regulatory standards.

How have you used AI to orchestrate open finance and build and deliver next-generation solutions on your open Fusion software architecture and cloud ecosystem?

Adam: Because AI may be new to mainstream consumers, we’re experimenting internally to ensure it’s customer-appropriate.

An example is that we recently joined Microsoft 365 Copilot as an early adopter and are working on rolling out Bing Enterprise Chat for all our employees. As a long-standing partner of Microsoft, with many of our solutions deployed on Azure, we have always valued their robust security, flexibility, and scalability.

By being a part of this initial program rollout, our employees can soon combine the power of large language models with our data in its apps.

We will soon be able to ask Copilot to generate meeting synopses and action lists following Teams calls, Finastra’s business and product launch plans on PowerPoint, and intuitive graphs to inform financial decision-making.

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Additionally, for developers, we’ve rolled out Finastra’s Secure Zone. The data platform is designed for production-grade data engineering, data science, and machine learning. Designed with usability and security in mind, it provides teams with the ability to not only experiment and develop prototype AI solutions but also to develop production models (traditional and generative AI) with full monitoring capabilities.

Could you please highlight embedded finance solutions and how they are engineered for rapid monetization with the help of technology?

Adam: Our embedded finance solutions are engineered for rapid monetization, offering businesses a direct route to growth and new revenue channels. These solutions enable financial institutions, distributors and merchants to expand their reach into new markets, connect with new customers, and explore untapped regions, all through a marketplace model that fosters efficient many-to-many interactions. We also co-designed this model with a network of these relevant parties, so each solution is meticulously crafted with the end customer in mind, anticipating market opportunities and prioritizing a user-centric experience.

To provide a specific example, our Embedded Consumer Lending solution provides secure and regulated finance options directly at the point of sale for high-value items, creating an indirect lending channel for financial institutions while boosting sales conversions for brands. The Embedded Business Lending solution empowers small and medium enterprises to access crucial funding faster, ultimately driving their business growth.

Can you talk about some of the most innovative fintech apps and platforms in the global payments and banking industry that according to you are set to create new benchmarks?

Adam: Plaid is definitely top of mind.

We recently collaborated with them to enhance the fintech landscape by integrating their open finance capabilities into our Fusion digital banking platform. Through this partnership, financial institutions within our ecosystem gain access to streamlined account verification tools, enabling customers to securely link their main financial accounts with external apps and services. This integration addresses the evolving demand for personalized financial management experiences, especially as consumers increasingly utilize various apps for their financial needs.

What are some of your thoughts on how the current world situation will impact the use of (and development) of the fintech segment?

Adam: Digital transformation continues to accelerate and impact all industries as customer expectations evolve, and I expect this to remain a huge driver for the fintech space. For example, online banking options will only grow in demand among retail bank customers, even those who bank with smaller, community financial institutions. This means that those banks will need to partner with fintech providers to remain competitive in today’s changing landscape.

I also expect artificial intelligence, particularly generative AI, to have a significant impact on the fintech space. The list of potential use cases for our ecosystem is already long, even as this technology continues to develop rapidly. From sophisticated chatbots to fraud detection to personalized financial advice, we are likely to see many AI-driven innovations in fintech in the years to come.

Your favorite fintech quote!

Adam: “The best way to predict the future is to create it.” – Peter Ducker

Tell us about some of the top tech events that you’ll be participating in (as a speaker or guest) in 2023-2024.

Adam: I am excited to attend SIBOs where we will be showing some prototype GenAI payment solutions and where I’ll be giving a talk on GenAI across the payment landscape.

Thank you, Adam! That was fun and we hope to see you back at the AiThority TechBytes interview soon.

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