Generative Artificial Intelligence (GenAI) is rapidly emerging as a key technology, with extensive potential use cases that promise significant efficiency and productivity gains. This transformative potential will inevitably impact the financial services sector, playing a central role in its ongoing digital transformation. Financial institutions, including banks and insurance companies, are already driving initiatives towards cloud technologies and hyperautomation, and are taking the first steps towards implementing GenAI. However, they face strategic, technical, and regulatory challenges.

In this document, we present BMC's "Fit for Purpose" approach, a strategic methodology with a clearly defined framework to help financial institutions effectively integrate and utilize GenAI. Our holistic approach addresses key elements such as governance, data protection, IT infrastructure, employee integration, product development, and core banking processes. The aim is to overcome typical hurdles in the integration of GenAI and ensure a smooth incorporation of this technology into the business environment of financial service providers.

This document offers insights into the challenges associated with the practical integration of Generative Artificial Intelligence (GenAI) in the financial sector. Drawing on a wide range of real-world use cases and current market examples, it illustrates how financial institutions can integrate GenAI economically and efficiently using the BMC process model. The aim of this paper is to equip financial service providers with strategic approaches to fully realize GenAI's potential and embark on a transformative journey towards future-oriented and secure operations.