From big budget to big impact: What banks can learn from DeepSeek’s cost-effective AI

Over the past few weeks, the World Economic Forum (WEF) has hosted some really interesting debates and discussions on everything from the future of AI to the evolving role of financial institutions in a rapidly changing world. Among the many game-changing topics, one that really stood out to me was DeepSeek. In case you aren’t already aware, DeepSeek is an emerging AI powerhouse that’s making significant waves for technology and, by extension, industries like banking.

Here’s the thing; DeepSeek has created some seriously impressive AI models, and they’ve done it in a way that’s way more cost-effective than you’d expect. Their R1 reasoning model, for instance, performs on par with AI giants but without the massive price tag. If that’s not a wake-up call, I don’t know what is. DeepSeek is showing that you don’t need a fortune or tons of infrastructure to train and build groundbreaking AI. For the banking world, this has huge implications. Let’s face it, traditional banking infrastructure can be incredibly expensive. And AI?

Well, it can often feel like an out-of-reach luxury for many institutions, especially when training their own models. But DeepSeek, on the other hand, is proving that powerful AI doesn’t have to come with a hefty price tag. If anything, it’s making clear that the future of tech can be affordable, accessible, and super-efficient.

Lesson 1: Cost-efficiency matters… a lot

One of the most important lessons DeepSeek has taught us is that cost doesn’t have to mean compromise. For banks, this is golden. AI has the potential to change how things are done, from streamlining back-end operations to offering more personalized experiences for customers. But it’s also easy to get caught up in the idea that AI solutions need to come with a huge price tag. DeepSeek is showing that’s not the case.

You can make smart, cost-effective choices that still get results. Banks can leverage AI to improve their internal processes without draining their budgets. Think automated workflows, better fraud detection, and even smarter customer support, all without stretching the wallet.

Lesson 2: Open source = innovation

Another big takeaway from DeepSeek? Open source is where it’s all happening. They’ve shared their AI models freely, which has allowed others to build on and improve them. This opensource approach isn’t just good for tech, it’s great for industries like banking that thrive on collaboration and trust.

For banks, the opensource model really is a game-changer. Rather than waiting for the “perfect” solution to come from that one vendor, they can adapt, tweak, and even build on open-source tools that suit their specific needs. It’s all about making sure the technology is flexible and transparent.

If a bank is using AI to make decisions that affect customers’ finances, trust is everything. Open source ensures that customers can see how those decisions are made, whilst the bank gets to retain the investment they’ve made into the models.

Lesson 3: Tech for all

Now, this one’s really interesting. DeepSeek is doing something that hasn’t been easy for a lot of startups in the tech world: they’re competing with giants, even though they clearly have fewer resources. How? By democratizing technology, and by making their tools accessible and affordable, they’re leveling the playing field.

Banks, especially smaller ones, can learn a lot from this. You don’t need billions in the bank (yes, I said it) to take advantage of cutting-edge tech. Smaller financial institutions can now access powerful AI tools that were once reserved for the big players. This means more competition, more innovation, and ultimately, better services for consumers.

So now that we know what DeepSeek is doing right, let’s talk about how this all connects to banking. Firstly, if banks want to stay ahead, they need to make smart choices with their technology. AI can improve so many areas — from reducing operational costs to enhancing decision-making. You don’t have to spend a fortune to implement & operate it.

Secondly, customers are looking for personalized, real-time solutions. AI can help banks offer this — whether it’s through chatbots, personalized recommendations, or predictive tools that anticipate a customer’s needs. It’s all about being smarter and more responsive.

Lastly, staying competitive: The banking world is a crowded space. If banks want to stand out, they need to embrace tech that helps them offer something unique. By adopting affordable AI solutions, banks can create an edge that attracts customers looking for innovation.

So, what can we really take away from the DeepSeek revolution? It’s not just about the AI (though that is pretty cool); it’s about how businesses can rethink their approach to technology, particularly in the financial world. By following DeepSeek’s lead and focusing on cost-effective, open-source, and accessible solutions, banks can streamline operations, build trust, and stay competitive in evolving marketplaces.

In other words, the future of banking doesn’t have to cost a fortune, and it certainly doesn’t have to be out of reach for smaller players. If anything, it’s about being smart, agile, and ready to embrace change. So, what’s your bank’s next move?

Alfred Quertier

Global Head – Sales Engineering, Azentio