AI in Belgian financial services

First Belgian AI Barometer reveals transformative impact on financial institutions

‍With the upcoming EU AI Act, a significant legislative move to manage AI integration within banking and insurance sectors, the Digital Finance Association FinTech Belgium and Consulting agency Sailpeak present today their inaugural Barometer.  This report offers valuable insights into how financial institutions are navigating the AI landscape. Key findings reveal that AI is not only an absolute future imperative but a real present reality. AI teams are being formed, and strategic investments are being made, emphasizing an ongoing transformation.

‍Brussels, June 20, 2024 – The report by FinTech Belgium and Sailpeak offers a comprehensive overview of AI’s integration within the Belgian banking and insurance industries, underscoring the ongoing shift towards digital transformation. By surveying 17 key institutions and conducting in-depth interviews with industry leaders, the report furthermore highlights the current landscape and future potential of AI in financial services.

Key findings demonstrate significant Artificial Intelligence (AI) adoption within Belgium’s financial sector. Predictive AI is widely implemented, with 84% of institutions utilizing it for applications such as customer segmentation, fraud detection, and risk modeling. This technology is particularly mature in marketing (61%) and insurance operations (58%), enhancing processes like underwriting and claims processing. Generative AI, while in its early stages, is being explored by 79% of institutions, particularly in marketing and customer-focused areas, with projects like chatbots and personalized communication.

‍“AI is revolutionizing the global financial sector, with Belgium’s financial institutions keenly adopting this transformative technology, with nearly 84% of participants deploying at least one AI application. The enthusiasm for both predictive and Gen AI among Belgian financial institutions underscores a strong commitment to tapping into these technologies to redefine the landscape of financial services”, says Nico Vincent, Founding Partner of Sailpeak that powered the survey. “The financial institutions are investing in dedicated AI teams and internal processes to harness AI’s transformative power, ensuring they remain at the forefront of this technological evolution. AI is not just a fad but will have a profound impact on the industry.”

Almost 8 out of 10 institutions has, or is in the process of building, dedicated AI units

‍The report also highlights a strategic disconnect between executive-level AI enthusiasm and its practical implementation at the employee level. While 37% of institutions have dedicated AI units, and 42% are developing them, a comprehensive approach to AI skills development is necessary to bridge this gap. Institutions like Baloise Belgium showcase effective strategies by balancing centralized data functions with close collaboration between business units.

Belfius and Ethias also exemplify innovative AI integration. Belfius has developed a comprehensive AI evangelization program to educate employees, while Ethias has established a multidisciplinary team to create ethical AI guidelines. This approach ensures alignment with the company’s values and principles.

‍Upcoming legislation coming by mid-2026

‍While the enthusiasm for AI is high, important challenges for further development remain. Key areas of focus include data privacy and security (78%) and data quality (78%) both of which are crucial for the successful deployment of AI. Additionally, institutions are navigating regulatory uncertainty (44%) and technology maturity (44%), along with the need for skilled personnel and seamless integration with existing systems. The upcoming EU AI Act, with its risk-based approach and emphasis on transparency and human oversight, is set to address these challenges, fostering innovation while ensuring robust governance. This legislation highlights the importance of ethical AI practices to build trust with customers and stakeholders within the financial and banking sectors, with all institutions required to be compliant by mid-2026.

‍Collaboration is king

‍The survey furthermore indicates that the respondents rate the importance of partnerships between financial institutions and fintech startups as essential to address the challenges and opportunities presented by Generative AI (at 3.7 out of 5). FinTech Belgium, with its network of over 130 members, plays an influential role in facilitating these collaborations, driving innovation and fostering a vibrant financial technology ecosystem.

‍“This AI Barometer highlights the importance of collaborating together and shows many projects demonstrating the remarkable range and diversity of AI applications within the financial services industry”, emphasizes Alessandra Guion, CEO of FinTech Belgium, the importance of such partnerships. “We can cite numerous examples of successful collaborations, such as between Argenta Bank and the startup Yields, which developed a rapid model validation for them, cutting time from months to weeks. Intelli-Select recently collaborated with Clearstream to transform collateral management, slashing operational costs and errors. Finally, we can also showcase the work of Duco, which enabled EuropAssistance to save 495 hours per month by automating 78% of manual work in the mailroom. These inspiring examples are just a few among so many others. The AI Barometer serves as a crucial tool for stakeholders to measure progress and align strategies with industry best practices.”