Top 10 banking trends for 2024
Banking on AI
January 8, 2024
A quarter of a century ago, banking stood on the verge of the Digital Age. The internet was starting to reveal its potential and most bankers had a strong premonition that far-reaching change was coming. Today we feel a similar sense of awe as we contemplate the potential of gen AI, especially when powered by the cloud and rapidly expanding data capabilities.
We’re confident the age of AI will change banking and many other industries—exactly how, we’ll only know in retrospect. No part of the bank—and few if any roles within it—will remain untouched.
Every year we share our perspective on the trends most likely to shape the future of the industry in the next 12 months and beyond. It should be no surprise the number one trend this year is the rapid adoption of gen AI, nor that it’ll have a transformative impact on the other nine trends bankers will need to confront in the months to come.
We’re now on the threshold of the Age of AI. Banking, like most other industries, will never be the same. The challenge is to ensure it’s a force for good that benefits our organizations, our people and all humankind.
Gen AI will undoubtedly be disruptive, but we’re confident that most of this will be positive. Our recent Art of AI Maturity survey on the topic—involving 1,600 C-suite executives at many of the world’s largest companies—found that 42% of those leading the way have already achieved a return on their AI investments that exceeds their expectations.
But the secret to these outcomes isn’t AI—it’s how it’s being used. It’s as much about people as it is about technology and as much about strategy as implementation. That’s a lot of balls to keep up in the air. But banks that master this juggling act will look back in years to come and toast to 2024.
As we enter the Age of AI, many bankers feel the same sense of awe that their counterparts did a quarter of a century ago as they stood on the verge of the Digital Age.
Michael Abbott / Global Banking Lead
The speed at which gen AI is being adopted by most organizations in nearly all industries, and the massive escalation of the power of the technology, are convincing indicators that it is here to stay—and will have a profound impact on banking.
Gen AI will make bank professionals more productive and improve the efficiency of banks’ operating model. However, we believe its biggest impact will be to increase revenue and loyalty by improving banks’ ability to understand and respond to individual customers’ intent and financial goals.
There are few functions and roles that will not be affected; our analysis indicates 73% of banking roles have a high potential to be either automated or augmented. We’ve already identified about 50 promising use cases for banks.
People should be at the very center of every gen AI strategy. New skills are needed to design, build, implement and train gen AI – banks will need to get used to a new way of working.