“‘Banks and credit unions have to stop thinking about AI as a function. They can’t be thinking about AI in terms of a ‘Chief AI Officer’ or an ‘AI initiative’ or an ‘AI policy’,’ said Tony DeSanctis, senior director at Cornerstone Advisors, during a recent webinar. ‘We need to be thinking about AI being integrated into everything we…
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AI adoption will trim banking industry costs by up to 20%
“Artificial intelligence is expected to drive up to 20% in net cost reductions for banks as the technology is implemented across the industry, according to McKinsey & Co.’s Global Banking Annual Review 2025 published last week. But AI-driven cost savings aren’t expected to last, as competition will erode gains for banks and savings will pass to customers rather than the…
Global Banking Annual Review 2025: Why precision, not heft, defines the future of banking
“Longer term, AI is likely to erode bank profitability as consumers start routinely using AI agents to optimize their finances (for example, automatically moving deposits into higher-yield accounts), which would reduce customer inertia and reshape industry economics. Agentic AI could disrupt deposits and credit card lending in particular by cutting through inertia. Today, $23 trillion of the…
Bank of America fires up generative AI payments assistant
“The company saw uptake of its Erica for Employees virtual assistant spread to more than 90% of its 213,000 employees in April. The tool, which was introduced in 2020, has since cut the number of IT service calls by half, Bank of America said.” Read more >>
RBC retains top spot, TD stumbles as AI race in banking intensifies
“McKay has pledged that RBC will realize $700 million to $1 billion in value from AI once its eight major AI use cases are fully deployed and scaled up. During TD’s Investor Day this year, the bank said it expects to slash $500 million in yearly expenses due to automation and AI and rake in…