AI-Powered Decision-Making, Self-Service Models, and Embedded Finance

The majority of financial institutions expect to adopt AI-driven solutions by the end of 2025 across a variety of functions, with AI reimagining operations, reducing costs, and driving growth.  The key to achieving this will be overcoming foundational barriers – such as data quality and organizational silos, system integration headaches, and risk management considerations – which are hindering AI initiatives and delaying the introduction of innovative new business models.

Establishing the six core technological building blocks for AI adoption at scale will help banks and financial institutions set the stage for growth in 2025 and beyond, unlocking a series of new opportunities:

• AI-powered decision-making. Predictive analytics is opening doors for banks to drive value across the customer lifecycle, processing and analyzing complex financial data at scale as well as personalizing advice, recommendations, and offerings based on historical data, behavior, and preferences. 
• Self-service models and personalized banking. Financial institutions can reduce support costs, simplify interactions, and enhance customer satisfaction by deploying chatbots to handle routine queries like balance checks, fund transfers, and account inquiries.
• Embedded finance. Integrating financial products into the digital platforms of non-banking service providers unlocks growth potential and creates new diversified revenue streams.