For Banks The AI Reckoning Is Now
What banks do in the next five years will define the next thirty
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The management consultant BCG goes for shock therapy with banks, declaring that banks aren’t keeping up with Agentic AI and that what they do now will define their future.
BCG is correct!
The consultant tackles real problems with bank AI investment and boldly slams banks’ AI investments, stating that " too much funding is going toward isolated productivity improvements rather than broader transformation.”
You have to give credit to BCG for its candor, and they are correct. Banks may save a few dollars with efficiency gains, but are losing control of the client as they haven’t investigated the use of AI in redefining the banking experience.
One of the disruptors banks should fear is digital platforms. These platforms will eventually assist in AI-led financial decision-making, shifting control away from banks to the digital platform owner.
The platform may be owned by digitally sophisticated neobanks, asset managers, or even big tech, and it will shred what little customer loyalty remains.
BCG’s complaint isn’t new. Other consultants have criticized banks’ focus on AI to cut costs rather than transforming banking into something new.
That said, BCG’s focus on platform players is unique and should scare banks into action.
Perfectly timed to boost banks’ fear levels, yesterday Google announced its “Shop with AI Mode” which brings agentic capabilities to e-commerce. Is it really a stretch for Google to do this with bank rates, car loans, or other financial decisions?
Google can do this without ever touching a user's assets. All they need to do is direct them to another bank. What bank can survive this?
It’s just a matter of time before Google, Robinhood, or Revolut brings agents to financial decision-making for the masses.
Banks without a response will be on the road to extinction.
👉 GenAI and Agents are the end of banking as we know it:
🔹 AI-led financial decision-making is shifting control from banks to digital platforms that act as financial gatekeepers. GenAI is a hyper-accelerant in this evolution—enabling more autonomous, seamless, and personalized experiences that pull activity away from traditional banking channels. Agentic AI will amplify these changes, making it even harder for banks to own the customer relationship.
🔹 AI-powered agents will optimize financial decisions in real time, making it easier for customers to switch providers and find better deals. Banks that once relied on stickiness will need new ways to earn loyalty.
🔹 AI-driven transparency will expose rate structures, fees, and lending terms in real time, eroding pricing power based on opacity. Banks will increasingly need to compete on financial value—offering transparent pricing—as well as intangible value: the timeliness and quality of their advice and how well they understand and anticipate customer needs.
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