Becoming an AI bank is no longer a question of if but of how.

McKinsey has just released one of the best reports on how to do it. Here are the main take-aways

1. Being an AI-first bank is about 4 things:

— Reimagining the customer experience (personalization, frictionless journeys) — Using AI to help with decision making — Modernizing core technology — Setting up a platform operating model

2. Banks excelling in AI do 4 things well:

— Set a bold, bankwide vision for the value AI can create — Transforming entire domains, processes, and journeys rather than just deploying narrow use cases — Build a comprehensive stack of AI capabilities powered by multiagent systems — Sustain and scale value by setting up critical enablers of the AI transformation

3. Capturing value from digital and AI transformations requires a fundamental rewiring of how a company operates. This involves 6 critical enterprise capabilities:

— A business-led digital road map — Talent with the right skills — A fit-for-purpose operating model — Technology that’s easy for teams to use — Data that’s continually enriched and easily accessible across the enterprise — Adoption and scaling of digital solutions

4. Things that banks need to do to unlock business value via AI:

— Choose the right scope of transformation by rewiring entire domains and subdomains — Decide which subdomains to transform with AI and in which order

5. Banks need to implement a comprehensive capability stack that goes beyond just AI models. This AI bank stack contains 4 key capability layers. Each layer will need to receive investment and attention to unlock the full power of AI for the enterprise.

— Engagement — Decision making — Data and core tech — Operating model

6. Orchestrated multiagent systems are one of the most promising areas:

— Can automate complex decisions and workflows through a twofold use of AI — Over time, banks could have hundreds of AI agents at their disposal, each trained to complete a particular task and ready to be called on by other agents or humans — Example in preparing credit memos: productivity gains of 20%-60%, faster decision making by 30% — Can form the basis of more engaging experiences for customers and bank employees

Will everyone succeed in applying the above?

Most likely not. But banks that will make it will unlock new ways of achieving scale and driving lasting, material value.

Author

AiUTOMATING PEOPLE, ABN ASIA was founded by people with deep roots in academia, with work experience in the US, Holland, Hungary, Japan, South Korea, Singapore, and Vietnam. ABN Asia is where academia and technology meet opportunity. With our cutting-edge solutions and competent software development services, we're helping businesses level up and take on the global scene. Our commitment: Faster. Better. More reliable. In most cases: Cheaper as well.

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