McKinsey Releases AI Financial Services Report

In a recently published report from McKinsey & Company, the authors dive into the benefits and risks of the banking sector integrating generative AI (gen AI) into its business model. The report noted that “two-thirds of senior digital and analytics leaders attending a recent McKinsey forum on gen AI said they believed that the technology will fundamentally change the way they do business.” While the report does focus on the banking sector there are also practical implications for the financial services industry more generally. The report states that “scaling gen AI will demand more than learning new terminology—management teams will need to decipher and consider the several potential pathways gen AI could create, and to adapt strategically and position themselves for optionality.” Additionally, another factor to be aware of in the generative AI space is the pace of change. The report states that “[w]hile smartphones took many years to move banking to a more digital destination—consider that mobile banking only recently overtook the web as the primary customer engagement channel in the United States—adoption of gen AI tools is happening in a fraction of that time.” The report recommends several steps including: the creation of a strategic roadmap, attracting and retaining talent, examining risk management systems, and a comprehensive change management plan.

Click here to read the McKinsey report titled “Capturing the Full Value of Generative AI in Banking.”