The financial sector is undergoing a fundamental transformation thanks to artificial intelligence (AI). While other industries have already experienced extensive automation cycles in the past, the financial industry is now noticeably catching up in terms of digitalization. GFT Technologies believes it is well positioned to benefit from this.
As a provider of IT services and software development, GFT Technologies has a high level of consulting and development expertise in forward-looking technologies such as cloud engineering, mainframe modernization - and also in the field of artificial intelligence (AI).
"Creating a powerful IT infrastructure is an important prerequisite for implementing AI solutions. We can offer our customers everything they need to anchor the new technologies in their business model and thus increase productivity," says CFO Jochen Ruetz, setting the direction.
But that's not all: "In our AI.DA Marketplace, we have collected numerous AI solutions and tools that are already being used in various industries. These range from systems for visual quality control, which we have implemented at several of the world's leading car manufacturers, for example, to fraud detection and compliance solutions for insurance companies and banks," says the CFO.
With "GFT AI Impact", a suite that automates and accelerates software development processes thanks to generative AI, the Swabians have also already proven that various sub-steps of the process can be accelerated by 50 to 90 percent. "We expect our data and AI expertise to give our core business a noticeable boost, especially in the area of platform modernization at financial institutions," says Ruetz.
To further exploit the AI megatrend, GFT has entered into a cooperation with Nvidia. "Nvidia has created a range of software tools that we want to use to develop customized AI applications. These include digital twins and visual inspection systems," says Ruetz. A digital twin is a virtual image of a product or process that can provide valuable insights into product development thanks to the comprehensive exchange of data.
"We will also be working with Nvidia to fine-tune open source language models (LLMs) for banks and insurance companies. With these customized LLMs, financial service providers can improve the performance of AI agents and optimize processes such as fraud detection, customer service and risk mitigation," the CFO goes into further detail.
Background: Nvidia's AI tools use open-source language models and therefore offer a high degree of flexibility and adaptability. They can be run in the cloud or on site, depending on customer requirements. "Since the source codes are accessible, they are explainable - unlike other providers whose models are black boxes. This makes it easier to comply with legal regulations," says the CEO.
But that's not all: "The EDGE solutions developed by Nvidia and the Omniverse platform are truly unique selling points: thanks to EDGE computing, very low latencies are possible, which is essential for many industrial applications. And the Omniverse platform enables particularly precise digital twins.
CONCLUSION
While the German economy is dominated by concerns about the lack of an upturn in demand, the IT sector is showing the first signs of growth at the start of the year. The main driver is business with AI. In addition, banks' IT systems, most of which are still outdated, are an obstacle to the rapid market launch of new financial products. Banks are therefore being forced to migrate their IT architecture to next-generation platforms. In the end, GFT Technologies is suitably positioned to benefit from these trends in the long term. If the next figures show that the operational trough has been passed, the share, which is favorably valued with a P/E ratio of 0.6 and a P/E ratio of 12, should already be trading significantly higher. Risk-conscious investors can use the current level to build up or expand a position.
