Regional banks risk falling behind in the AI age of banking

February 23, 2024
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Regional banks risk falling behind in the AI age of banking

While they have excelled in combining technology and personal service, there is concern that they are underestimating the impact of AI and its rapid evolution.

The emergence of new regional banks with a strong relationship banking model has been validated by customer satisfaction scores. However, regional banks may not fully grasp the disruption AI will bring to the industry. They are focused on AI use cases like product recommendations, but AI has the potential to completely transform the current banking business model.

The speed of technological advancements, exemplified by the rapid increase in parameters in ChatGPT versions, is also being underestimated.

https://www.mckinsey.com/industries/financial-services/our-insights/ai-bank-of-the-future-can-banks-meet-the-ai-challenge

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