UBS and McKinsey highlight the potential of AI in revolutionizing banking, while facing challenges in demonstrating ROI and overcoming obstacles like competition and change resistance. Human bankers’ roles evolve as AI integration progresses, emphasizing the need for a blend of technology and human judgement in financial decisions.
Artificial Intelligence (AI) is significantly impacting the banking sector, with industry leaders from UBS and McKinsey identifying both potential and challenges.
On July 1, McKinsey emphasized that while AI has the potential to revolutionize banking, financial institutions face difficulties in demonstrating a return on investment (ROI) from these technologies. Their research indicates a success rate of only 30% for digital transformation initiatives. Factors such as the need to differentiate from competitors and resistance to change were highlighted as obstacles. McKinsey suggests integrating strategic organizational and change management initiatives alongside technological investments to achieve tangible results.
Sabine Keller-Busse, head of UBS’s domestic business, further underscored AI’s influence during the Point Zero Forum on July 2 in Zurich. She noted that clients increasingly use AI tools like ChatGPT to gather ideas before interacting with banks. UBS has implemented AI in client services, including a pilot program for instant credit to small and medium-sized businesses.
The role of human bankers is also evolving with AI advancements. Citigroup’s June report warned that 54% of banking roles could face AI-driven displacement, while an additional 12% might be enhanced by AI integration. Despite AI’s capabilities for streamlining processes and data analysis, human judgment remains crucial, especially in complex financial decisions.
The integration of AI into banking indicates a broader trend where banks must adapt their services and client engagement strategies to stay ahead in the digital landscape.
