– It’s time for generative AI in commercial banking
As the spring season unfolds, many individuals, including bankers, are taking a fresh approach to their challenges with renewed energy. Commercial banking is a crucial area that should be included in this year’s spring-cleaning list. While being a significant revenue source for banks, the manual processes involved in commercial banking limit the potential for profit growth.
The Commercial Banking Top Trends for 2024 report underscores the key issues in commercial banking, with generative AI emerging as a common theme across all of them. To delve deeper into the potential of generative AI in commercial banking, we are collaborating with top commercial banking leaders worldwide to create a three-part series that aims to inspire ideas for clients as they embark on their generative AI journey.
Generative AI has sparked enthusiasm due to its transformative potential in various aspects of life and work. The technology is advancing rapidly, making it challenging for many to keep pace. Accenture’s research confirms that banking is one of the industries most likely to be impacted by generative AI, with automation and augmentation poised to affect a significant portion of banking roles.
Commercial banks are approaching generative AI differently, with some focusing on specific use cases to benefit customers, employees, or regulators (Experimenters), while others are looking at overhauling entire experiences and value chains to gain a competitive edge (Reinventors). Finding the right approach between these extremes is crucial for commercial banks looking to leverage generative AI effectively.
One innovative client is using generative AI in combination with human agents to personalize offers for customers at a lower cost compared to competitors. Automation and augmentation powered by generative AI are also streamlining operations to reduce turnaround times. The transformative potential of generative AI for commercial banks and their customers cannot be underestimated, and the challenge lies in starting and scaling rapidly.
Moving forward, we will share insights on what leading commercial banks are doing to generate immediate value in our next post. For those interested in learning more, our recent reports on Commercial Banking Top Trends for 2024 and The Age of AI–Banking’s New Reality provide valuable insights. Additionally, our experts will be at nSight2024 in Charlotte, where they will host sessions on AI and commercial banking as exclusive diamond sponsors. Feel free to reach out to us if you’d like to discuss your bank’s generative AI journey.