What's the story

A recent report by McKinsey has warned that banks could suffer a hit of up to $170 billion in profits if they fail to adapt their business models. The consultancy firm predicts that the rise of agentic artificial intelligence (AI) - essentially autonomous bots - could impact the profits banks earn from customer deposits in low-interest accounts.

Impact on banking

AI's potential impact on customer decisions

Pradip Patiath, a senior partner at McKinsey, highlighted the potential impact of AI on customers' financial decisions. He said, "Imagine you have an AI agent that says: 'Hey, you could save $2,000-a-year by moving your money.'" This is where agentic AI comes in. The technology could automate many existing systems and processes in banking today.

Profit decline

$2

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