Bank CEOs have praised the pivotal efficiency changes promised by AI. Some have said AI will cut jobs, and others say it will create more employment opportunities. As banks reported earnings this week, CEOs dropped more insight into how generative AI could boost productivity, replace some roles, and keep head count from growing.
According to Li Mandri, ING's centralised approach to AI development has resulted in a high success rate for pilot projects, with 90% moving to production compared to the industry average of 30. The bank has standardised on cloud-hosted AI models from preferred partners, which are then made available globally, allowing ING to scale. He says the platform is centrally managed with risk controls, guardrails and real-time monitoring.
People working at the front and back offices of banks are going to have wildly different experiences with AI, says Sopnendu Mohanty, the group CEO of the global advisory and investment firm GFTN. He told Business Insider that the disruption posed by AI will depend on whether one works in a bank's front, middle, or back office. "Front is all for the customer. The middle is all for the bank, and the back is just for processing all the activity," Mohanty said.
The digitalization of loan applications has transformed the long-winded process into an instantaneous experience, allowing clients to receive funds within minutes.