From back office to frontline: Unlocking AI’s revenue potential in banking

Core Insights - The technology landscape has shifted significantly towards AI, overshadowing the previous dominance of FAANG companies in driving economic stability [1] - Many banks have adopted AI primarily for operational efficiency, but this limits the potential for new revenue generation [2] - The real opportunity for banks lies in leveraging AI for hyper-personalisation, predictive analytics, and dynamic pricing to drive growth [3] Data Monetisation - Banks possess vast amounts of transactional data that remain underutilised due to regulatory complexities and a lack of actionable tools [4] - AI enables banks to refine and monetise this data, transforming it from a raw resource into valuable insights [4] Customer Engagement - By analysing transaction flows and spending patterns, banks can identify opportunities to enhance customer relationships, such as offering tailored foreign exchange services [5] - Seasonal payment spikes in small businesses can lead to the implementation of dynamic credit terms, shifting banks from passive service providers to proactive growth partners [6] Compliance and Innovation - The responsible deployment of data is crucial, highlighting the intersection of compliance and innovation in banking [6] - The emergence of self-hosted AI frameworks presents a potential pathway for banks to harness data effectively while maintaining compliance [6]