AI IN BANKING: Artificial intelligence could be a near $450 billion opportunity for banks - here are the strategies the winners are using
- This is a preview of the AI IN BANKING research report from Business Insider Intelligence.
- 14-Day Risk Free Trial: Get full access to this and all Fintech industry research reports.
Discussions, articles, and reports about the AI opportunity across the financial services industry continue to proliferate amid considerable hype around the technology, and for good reason: The aggregate potential cost savings for banks from AI applications is estimated at $447 billion by 2023, with the front and middle office accounting for $416 billion of that total, per Autonomous Next research seen by Business Insider Intelligence.
Most banks (80%) are highly aware of the potential benefits presented by AI, per an OpenText survey of financial services professionals. In fact, many banks are planning to deploy solutions enabled by AI: 75% of respondents at banks with over $100 billion in assets say they're currently implementing AI strategies, compared with 46% at banks with less than $100 billion in assets, per a UBS Evidence Lab report seen by Business Insider Intelligence. Certain AI use cases have already gained prominence across banks' operations, with chatbots in the front office and anti-payments fraud in the middle office the most mature.
In this report, Business Insider Intelligence identifies the most meaningful AI applications across banks' front and middle offices. We also discuss the winning AI strategies used by financial institutions so far, and provide recommendations for how banks can best approach an AI-enabled digital transformation.
The companies mentioned in this report are: Capital One, Citi, HSBC, JPMorgan Chase, Personetics, Quantexa, and U.S. Bank
Here are some of the key takeaways from the report:
- Front- and middle-office AI applications offer the greatest cost savings opportunity across banks.
- Banks are leveraging AI on the front end to smooth customer identification and authentication, mimic live employees through chatbots and voice assistants, deepen customer relationships, and provide personalized insights and recommendations.
- AI is also being implemented by banks within middle-office functions to detect and prevent payments fraud and to improve processes for anti-money laundering (AML) and know-your-customer (KYC) regulatory checks.
- The winning strategies employed by banks that are undergoing an AI-enabled transformation reveal how to best capture the opportunity. These strategies highlight the need for a holistic AI strategy that extends across banks' business lines, usable data, partnerships with external partners, and qualified employees.
In full, the report:
- Outlines the benefits of using AI in the banking industry.
- Details the key use cases for transforming the front and middle office using the technology.
- Highlights players that have successfully implemented AI solutions.
- Examines winning strategies used by financial institutions that are leveraging AI to transform their entire organizations.
- Discusses how banks can best capture the AI opportunity, including considerations on internal culture, staffing, operations, and data.
Interested in getting the full report? Here are two ways to access it:
- Purchase & download the full report from our research store. >> Purchase & Download Now
- Subscribe to a Premium pass to Business Insider Intelligence and gain immediate access to this report and more than 250 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >> Learn More Now
- Current subscribers can log in and read the report here. >>Read the Report
- I just got laid off from my dream job at Tesla without warning. I feel like my life got uprooted so a billionaire could save some money.
- Four-days work week, full and final settlement within 2 days of exit — new changes at workplaces to reflect from July 1
- Akash Ambani to head Reliance Jio - that’s just phase I of Mukesh Ambani’s succession plan
- Adding money to your Paytm wallet can’t get easier than this
- Best smartwatches under ₹3,000 in India
- Mukesh Ambani & Anil Agarwal lose ₹1.17 lakh crore in a few hours as government slaps two different oil taxes
- OnePlus Nord 2T launch is around the corner – here’s what you can expect
- OnePlus Nord 2T Review — A balanced all rounder at an affordable price