As customer expectations evolve at an unprecedented pace, banks face a pivotal choice: adapt through innovation or risk falling behind.
The latest KPMG thought leadership explores how banks can thrive by embracing artificial intelligence (AI) within dynamic partner ecosystems, moving beyond internal capabilities to deliver “everything, everywhere, all at once”.
Traditional banking models are being reshaped by the need for agility, personalisation, and operational efficiency. Banks can no longer rely solely on in-house resources to meet rising demands.
Instead, strategic collaboration with specialised partners enables banks to offload noncore functions, focus investment where it matters most, and scale from isolated pilots to enterprise-wide execution.
AI is not the endgame, but a powerful enabler—helping banks match the speed and personalisation of fintechs while unlocking new levels of efficiency and customer value.
Currently, banks are leveraging AI primarily in the back office, automating routine tasks such as data entry, fraud detection, compliance monitoring, and financial forecasting.
These initiatives drive cost savings and productivity gains—70% of US banking leaders report significant cost savings from AI implementations. Yet, real transformation requires reimagining processes end-to-end, supported by the right investments and partnerships.
Larger banks may focus on competitive distinction, while smaller banks can partner to access capabilities beyond their reach. A flexible partner ecosystem allows banks of all sizes to selectively invest, distribute risk, and scale what matters most.
The journey to full AI enablement is about more than efficiency—it’s about setting new standards for customer engagement. AI agents, ranging from simple automation tools to sophisticated orchestrators, are transforming banking operations.
Class 1 agents streamline repetitive tasks; Class 2 agents collaborate across ecosystems; Class 3 agents orchestrate complex operations, leveraging adaptive networks of AI entities and amplifying capabilities through strategic partnerships.
Banks can consider a wide array of potential AI partners:
Machine learning is evolving as an indispensable part of the AI ecosystem, providing robust tools for risk assessment, credit scoring, and customer segmentation. Partners bring specialised expertise to develop and refine these models, helping banks address complex challenges and regulatory demands.
AI-centric partnerships are revolutionising payments, KYC, and mortgage applications:
To unlock full value from AI-centric ecosystems, banks must balance innovation with risk management:
KPMG combines advanced technology, deep experience, and operational excellence to help banks evolve through both internal efforts and partner ecosystems.
Our teams accelerate and sustain transformation journeys, minimising disruption and risk. We help identify partners, develop strategies, and balance innovation with intentional risk management.
Our AI-enabled platform for organisational change, including the KPMG TACO Framework™ and Intelligent Modernisation Toolkit, supports rapid modernisation and migration, reducing delivery costs and improving efficiency across the software development lifecycle.
Strategic partnerships are the foundation of successful AI-driven transformation in banking. By engaging a diverse ecosystem of partners, banks can evolve into AI-centric enterprises that meet customers where they are.
The possibilities are expansive and transformative, from building digital-first operations to rebranding for a modern, customer-centric identity. By prioritising risk management, cybersecurity, data privacy, and compliance, banks can accelerate towards a customer-focused, AI-powered future.
If you have any queries about building an AI-driven partner ecosystem, modernising your banking operations, or navigating the risks and opportunities of AI adoption, please contact our team.
We’d be delighted to help you unlock the full potential of AI for your organisation.
Partner, Head of AI & Velocity, Head of Banking & Capital Markets, Global Lead for Financial Services Cost Transformation
KPMG in Ireland
