Technology

Use Case

Industry Example

Risk

Cost-Benefit Analysis (with Numbers)

Artificial Intelligence (AI)

Credit scoring & underwriting

Zest AI for fair lending decisions

Bias, fairness in credit access

Cost: $1–3M setup. Benefit: Reduces default rate by 20–30%, improves loan approval turnaround by 40–60%

Machine Learning (ML)

Fraud detection & AML

HSBC’s AML systems

False positives, regulatory concerns

Cost: ~$500K/year. Benefit: Saves $10–15M annually in fraud losses & compliance penalties

Blockchain

Real-time settlement & transparency

JPMorgan’s JPM Coin

Regulatory grey zones

Cost: $5–10M initial infra. 

Benefit: Saves $20–30M/year in settlement costs, reduces 80% reconciliation time

Robotic Process Automation (RPA)

Automating reconciliation, reporting

Deutsche Bank

Not scalable for judgment-based work

Cost: ~$100K per process. 

Benefit: ROI in <1 year, 30–60% cost savings on manual ops

Cloud Computing

Real-time analytics & cost savings

Goldman Sachs x AWS

Cybersecurity, data sovereignty

Cost: Pay-as-you-go (~$100K/month for mid-size banks). 

Benefit: 30–50% infra cost savings, 4x faster time-to-market

Quantum Computing

Option pricing, portfolio optimization

Goldman Sachs proof of concept

Still in R&D, high complexity

Cost: $10M+ (R&D stage). 

Benefit: Potential to reduce compute time from hours to seconds, unlocking real-time pricing

Generative AI

Automating reports, client Q&A

Morgan Stanley + OpenAI GPT

Hallucination, reputational risk

Cost: ~$100K/year/team. Benefit: 2–3x advisor productivity, 70% time savings on client interactions

Natural Language Processing (NLP)

Sentiment analysis & earnings calls analysis

Bloomberg Terminal

Misread tone/context

Cost: ~$200K–300K/year. Benefit: 10–15% edge in alpha generation via faster information processing

Internet of Things (IoT)

Usage-based financing (e.g., auto insurance loans)

SBI General (pilot)

Privacy, device errors

Cost: $50–100 per device. 

Benefit: 15–20% premium customization, reduces risk coverage overpricing

5G

Real-time mobile banking & high-frequency trading

Zerodha, Robinhood exploring 5G-based execution engines

Infra cost, cyber exposure

Cost: $2–5M infra upgrade. 

Benefit: Reduces latency by 10–20x, boosts trading volumes by 15–30%