With limited resources and mounting pressure to innovate, financial services firms require a new approach. Co-creation—partnering with experts in product engineering and digital transformation—offers a path forward.
Financial institutions operate under some of the strictest regulatory frameworks, making it difficult to innovate without risking compliance violations. From anti-money laundering (AML) rules to customer data privacy regulations like GDPR, these stringent requirements often result in project delays and operational bottlenecks.
This belief in reactive decision-making stems from the industry’s long reliance on actuarial science and historical trends. For decades, these tools were the gold standard for underwriting policies, setting premiums, and managing claims. Insurers built complex models that only worked backward—adjusting based on what had already occurred.
According to McKinsey, less than 20% of financial institutions have successfully scaled AI across the enterprise despite surging investment and strategic intent. Instead, most organizations remain stuck in pilot mode—experimenting, but not transforming.
