Artificial Intelligence Management
MACHINE LEARNING AND GENERATIVE AI
Becoming a cornerstone of modern business practices from a futuristic concept, artificial intelligence has fundamentally altered how companies operate and compete. With its unprecedented ability to process and analyze vast amounts of data at an incredible speed, artificial intelligence enables companies to make more informed decisions, identify trends, and predict consumer behavior with exceptional accuracy.
At Garanti BBVA, we have hundreds of models established with various algorithms ranging from machine learning to deep learning in areas such as marketing and sales, pricing, fraud detection, credit assessment, and customer satisfaction. However, starting from 2023, generative artificial intelligence technology has begun to have a more significant role in our lives. Beyond analyzing existing data, artificial intelligence that can generate new data and create original content now allows us to provide higher quality services to a broader customer base. In this context, our goal is to integrate generative artificial intelligence into our mobile application's chatbot, turning it into a personal assistant that understands our customers' needs and guides them with proactive recommendations.
Artificial intelligence technologies are no longer just an advantage but a necessity to remain competitive in the business world. Therefore, at Garanti BBVA, we believe that investing in artificial intelligence technologies is not only a move towards the future but also a fundamental element of achieving success in today's business world. However, we also recognize that issues such as intellectual property, copyright, and the potential risks associated with applying artificial intelligence to robotics (as 40% of global GDP is generated by human labor) are among the concerns that need to be addressed in the coming years.
ESG PERFORMANCE WITH AI
Environmental
In 2021, Garanti BBVA started using the Remote Eye System, which is supported by Artificial Intelligence, for limiting electricity consumption through infrastructure monitoring and control. The Remote Eye System performs automatic energy and water management in locations based on previous years' data with artificial intelligence embedded to the system infrastructure. Thanks to the system, the bank has automated energy management/consumption and water management. The number of locations reached 293 including new installations and installations in relocated/ renovated branches. The system secured 15% saving in electricity consumption in 157 of the Bank's locations compared to the same months of 2019. This reduction in electricity consumption is in line with the Paris Agreement Target and the bank's climate strategies and targets. The performance metrics of the system are the bank's electricity and water consumption and scope-1 carbon footprint. The performance metric data are published in IAR-2023 (page 299,300). Water consumption decreases from 233k m3 (FY 2022) to 222k m3(FY 2023). Scope-1 Carbon footprint decreases from 18981 tonnes CO2e (FY 2022) to 18073 tonnes CO2e (FY 2023). The Remote Eye System prevents natural resource consumption by reducing electricity and water consumption. Thus, both the resources needed by the ecosystem and biodiversity are protected.
Regarding Sustainable Products and Services, we are using big data to analyze our customers’ needs, and delivering the right service to our customers at the right time through our smart, personalized contents. We are enhancing our smart assistant “UGI” with generative AI to enable responses to our customers’ questions with high accuracy and precision. Integration of these new technologies in our banking services will continue to be among our investment areas also in 2024. Smart assistant “UGI” guides clients who want to access sustainable products and services appropriately for product details. UGI is Türkiye’s first AI-based smart assistant. Number of UGI Smart Assistant Interactions is 61.7 million in 2023. The data was 53.3 million previous year (2022). This increase also shows the interest in AI on the client side.
Social
Integrating the opportunities resulting from advancing technology and data sources in its business model, Garanti BBVA adopts a more analytical approach to customer management by making use of advanced data analytics and artificial intelligence. It also employs these outputs in its organizational model with the purpose of improving business results.
Regarding customer relations, we are using big data to analyze our customers’ needs, and delivering the right service to our customers at the right time through our smart, personalized contents. We are enhancing our smart assistant “UGI” with generative AI to enable responses to our customers’ questions with high accuracy and precision. Integration of these new technologies in our banking services will continue to be among our investment areas also in 2024. Smart assistant “UGI” guides clients who want to access sustainable products and services appropriately for product details. UGI is Türkiye’s first AI-based smart assistant. Number of UGI Smart Assistant Interactions is 61.7 million in 2023. The data was 53.3 million previous year (2022). This increase also shows the interest in AI on the client side. Garanti BBVA uses image and data processing competencies in intelligent document processing, enhanced customer satisfaction and increased operational efficiency were secured through faster and higher quality processing of banking instructions received from customers. For maintaining external fraud risk management activities focused on customer security and experience which are covered in privacy protection, data-based and artificial intelligence-supported decision-making processes regarding external fraud incidents are carried out to minimize possible Bank and customer losses. Decision-making processes were developed by strengthening artificial intelligence and machine learning capability with 4 different analytical models.
Regarding human capital development, Garanti BBVA improves learning experience by making greater use of employees’ training data and of technologies such as Artificial Intelligence. Talent acquisition processes will continue to be developed with the support of current technology and artificial intelligence models to enable the fastest identification of candidates with the right competencies and experiences, and the most effective candidate relations management. Employees’ training data and technological means such as artificial intelligence will be utilized at a higher extent to develop learning solutions with “smart suggestions”, and learning from one another and personalized learning experiences will be increased.
Governance
For maintaining external fraud risk management activities focused on customer security and experience which are covered in privacy protection, data-based and artificial intelligence-supported decision-making processes regarding external fraud incidents are carried out to minimize possible Bank and customer losses. Decision-making processes were developed by strengthening artificial intelligence and machine learning capability with 4 different analytical models. Metrics to measure of performance are Net Promoter Score (NPS, total customers and mobile banking customers. NPS measurement are 1st in Corporate Banking, 1st in Commercial Banking, 2nd place in SME banking, 2nd place in retail banking and 2nd place in Mobile Banking among our peers. Number of total customers is 25 million in 2023 while it was 23 million in 2022. Number of mobile banking customers is 15 million in 2023 while it was 13 million in 2022. The performance metric data are published in IAR-2023 (page 52).