GenAI is being tested by enterprises to identify the value it can bring to their operations. In 2024, the BFSI industry undertook more GenAI testing and POCs than any other industry. However, many POCs were unsuccessful because of limitations in data sets, processing power, and digital processes.

In 2025, large banks are narrowing the range of their GenAI use cases and launching full-scale operational deployment for them. The use cases banks are operationalizing are:

• Software development and modernization
• Agent support
• Process automation
• Document data extraction and categorization 
• Employee training.

Software development, modernization, and maintenance are GenAI's highest adoption use case in the financial services industry, with GenAI reducing the delivery cost by 30% to 70%. The financial services industry is in cyclical high demand for software development and modernization as it adopts new technology architectures, responds to rapidly evolving regulatory requirements, and automates previously manual processes (a “digital first” strategy).  So, what are vendors doing to help institutions operationalize GenAI software development to speed business transformation at scale?

TCS is helping institutions accelerate software development and modernization by embedding GenAI in its TCS MasterCraft offering, one of the software brands it offers to the market. TCS MasterCraft is a 2012-launched software and data modernization platform that delivers multi-modal software development and ongoing modernization of legacy applications. TCS MasterCraft uses AI to analyze data records and legacy code. In May 2025, it launched a GenAI-enhanced version to enable software engineers to:

• Interview software users more effectively identify processes with high automation potential by employing agentic GenAI
• Create legacy code summaries
• Extract processing rules and SOPs from code summaries
• Identify dependencies
• Customize new code design by industry and institution
• Write and test new code
• Extract processing rules and SOPs from new code summaries. 

GenAI functionality will enable clients to:

• Identify processes to automate. Previously, people identified manual processes suitable for automation. Often, individuals had skills in either technology or business, but not both. By combining GenAI and people to conduct process identification, TCS MasterCraft is now able to improve process selection and enable more efficient resource utilization
• Build greater operational customization by industry, market, process, and institution, facilitating differentiation
• Enable reduced time to market for new products to harvest more of each new product’s lifetime value.

TCS will not standardize on one LLM set. This enables clients to work with the most relevant LLMs and switch between them in the future. Clients will be able to develop higher accuracy from their AI models from data-sourcing flexibility.

The BFSI industry has been the largest adopter and user of GenAI for software development to date, and already, 2025 is showing strong growth in the number of GenAI-enabled software development programs. Principal adopters are global custodians, global universal banks, and commercial lenders.

The hype around GenAI has been around building moonshot projects to deliver novel functionality. TCS MasterCraft's latest version is designed to deliver up to 70% greater efficiency, addressing the vast legacy application infrastructure constraints that banks face. Many of the legacy apps are written in COBOL, which increasingly lacks trained coders able to update and transform them. Success in automating code remediation will release billions in bank capital to address higher-value industry challenges.