Intelligent Banking

Harnessing AI: A path to banking transformation

As we enter a new era in banking, rapid changes are reshaping the landscape. With AI leading technological advancements, shifting customer expectations, and increasing regulatory demands, adapting and innovating are essential to stay ahead.

While some banks are highly advanced in their use of AI, many others face significant barriers that impede progress. Moving beyond tests and pilots is no longer an option — it is an imperative. This report serves as a guide to help banks navigate this critical transition and unlock AI’s transformative potential.

Banking leaders are walking a tightrope of rapidly advancing their AI agenda while simultaneously defining the value of their investments. It is essential for leaders to align AI’s potential with overall business and talent strategies, articulating where value will emerge at each stage in a manner that resonates with the C-suite and boardroom.

Peter Torrente

US Sector Leader, Banking & Capital Markets

Organizations face significant pressure to show immediate ROI on AI investments, yet many struggle with measurement tools and integration challenges such as data silos. Despite these hurdles, some have fully embedded AI to drive innovation, focusing on cost reduction and improved customer experience, with plans to increase their AI budgets.

Key findings are highlighted below. Detailed findings are available in the full report.

84%

report experiencing shareholder pressure to demonstrate immediate ROI on AI investments

36%

admit their organizations lack the necessary tools or established metrics to measure ROI effectively

Top 3 AI goals for US banks

Key value streams in banking

Loan origination: This value stream encompasses the entire process of a customer applying for a loan, inquiry, risk assessment, approval, disbursement, servicing and eventually, closure.

Onboarding and account opening: This journey begins when a customer first engages with the bank, opening an account, going through compliance checks and receiving initial financial services.

Fraud prevention: This stream spans the entire banking system, integrating real-time fraud detection, risk mitigation and customer protection activities into one seamless process.

Payment processing: Covering a wide range of activities, this stream involves domestic and cross-border transactions, payment approvals, reconciliation and real-time tracking of funds.

Customer retention and growth: This focuses on the continuous engagement with a customer over their financial lifecycle, including personalized advice, loyalty programs and customer satisfaction management.

Unlock the transformative power of AI in banking with our comprehensive report. Packed with actionable insights for leaders at every stage, from initial pilots to scaling AI enterprise-wide, this research is your guide to staying ahead in a rapidly evolving landscape. Download now to drive innovation and success in your AI journey.

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Unlocking AI potential: GenAI sector value reports

"The intelligent enterprise: A blueprint for creating value through AI-driven transformation" reports provide a detailed guide for organizations to implement AI, optimize operations, and enhance market impact. Released in a series, the reports will cover eight critical industry sectors and outline a three-phase AI transformation process: Enable, Embed, and Evolve. Insights stem from in-depth interviews with AI experts, sector-specific KPMG professionals, and a survey of 1,390 decision-makers across eight global markets, including Australia, China, Germany, the UK, Canada, France, Japan, and the US. This research offers actionable strategies tailored to each industry sector.