The results of their third annual Digital Banking Experience (DBX) Report, which reveals that banks and other financial institutions are looking to artificial intelligence (AI) to fill the gaps for the successful use of open banking, will be released this week by Sopra Steria and Sopra Banking Software (SBS), a FinTech Magazine Top 10 banking technology company.

The study, which was co-authored by Forrester and Ipsos, reveals that the most popular way for banks and financial institutions to take advantage of this emerging technology is to use AI to support open banking. Of the FIs surveyed, 75% acknowledged that they aren't yet operationally prepared to take part in open banking.

In spite of this, 52% of international banks polled believe AI has the potential to become a very important income stream for the entire company.

The sectors where banks believe AI will have a revolutionary influence are shown below, based on the DBX research.

The "deafening" need for AI application in banking

"The banking industry has been screaming for digitization for years," says Eric Bierry, CEO of Sopra Banking Software. That appeal is more urgent than ever with AI at the wheel.

In fact, there has been a significant change from the previous year's 2024 DBX study, which said that banks were unable to compete with digital challengers and other new entrants in the market because of their delayed digital transformation.

After just a year, over half (58%) of banks identify as having reached the highest level of digital maturity. This indicates that there is an increasing need for those banks to catch up, and for those that have reached this level, new advances in artificial intelligence will require more digitalization efforts.

Moving away from legacy infrastructure alone—a sign of digital maturity—is no longer sufficient to stay up with the rate of innovation in the sector.

The D2024 DBX research, which surveyed 11,000 global banking clients and over 850 top decision-makers, emphasizes how banks must move beyond digital transformation in order to completely adapt to the digital-first environment.

Using AI to use public financial data

The advantages of open banking are obvious, even though many financial institutions are still not prepared for it. In the US, open banking services provide a sizable income stream for 53% of banks because to allowed data sharing and enhanced data insights.

Collaboration between conventional banks and fintechs will also be facilitated by new open banking legislation that have improved data-sharing possibilities. Open banking is now viewed as "crucial" to the prospects of 74% of international banks and 66% of US institutions.

Banks will better empower fintechs to use AI to create new financial services and products through data-driven partnerships.

In the midst of the open banking revolution, artificial intelligence (AI) is critical to banks since it helps them not only increase revenue but also deliver a satisfactory client experience.

Roughly 40% of clients using international banking services claim they haven't received the same level of individualized treatment from their bank as they do elsewhere. Actually, just 27% of customers think their bank provides them with services that are most appropriate for their financial circumstances, and 19% feel that a lack of personalization might lead them to switch banks completely.

AI: The secret to revolutionizing customer support

With poor worldwide banking customer satisfaction rates, banks are relying on artificial intelligence (AI) to provide the highly personalized experiences that consumers want.

According to the survey, AI will have the most influence on customer service, according to 62% of US banks. Specifically, 64% of US incumbent banks want to increase their investments in AI-enabled chatbots and digital assistants, compared to 45% of banks worldwide, as banks increasingly use AI to better communicate with customers.

This occurs at a time when 48% of bank clients believe their financial adviser does not completely comprehend their demands, and 51% believe banks are not motivated to increase their income.

Therefore, by improving their financial advice, banks may capitalize on the confidence that customers already have in them thanks to AI. This is due to the fact that, despite the raised worries, 80% of consumers still have faith in traditional banks.

Eric goes on, "Open banking is one of the key areas where banks are looking to AI to provide new chances for cooperation and improve procedures, but it doesn't stop there. AI also makes it possible for banks to become their customers' trusted financial advisors, satisfying their increasing need for personalization.