Only 6% of retail banks have built an enterprise roadmap to drive AI-driven transformation at scale

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Only 6% of retail banks have built an enterprise roadmap to drive AI-driven transformation at scale

• Just 4% of retail banks are ready to take full advantage of generative AI-led intelligent automation
• 61% of retail bank customers contacted agents because they were unhappy with chatbot resolutions
• Customer onboarding teams currently spend 91% of their time on operational and compliance activities
  
  

Paris, March 5, 2024 – The 20^th anniversary edition of the Capgemini Research Institute’s World Retail Banking Report, published today, reveals 80% of retail bank executives believe that generative AI represents a significant leap in advancing AI technology. However, only 6% of retail banks are ready with a roadmap for enterprise-wide AI-driven transformation at scale.

As a result of macroeconomic uncertainty, many retail banks are being forced to make strategic decisions to navigate challenges to their existing business models. Productivity and efficiency dominated the priority list of the bank leaders surveyed. When it comes to technology, 70% of bank CXOs plan to increase investment in digital transformation by up to 10% in 2024. Yet, the report finds that banks are not ready to embrace and scale intelligent transformation, which involves the strategic application of advanced technologies like AI, machine learning and gen AI to drive innovation and efficiencies.

Banks must act quickly to avoid “generative AI silent failure”
For this report, Capgemini evaluated 250 retail banks across diverse business and technology parameters¹ to understand their infrastructure data maturity and commitment to artificial intelligence. It found most banks are ill-prepared to thrive in an intelligent banking² future. Globally, only 4% of retail banks achieved a high score on business commitment and technology capabilities, while 41% scored average, indicating a widespread lack of readiness to embrace and effectively implement intelligent transformation.³ Regional disparities further underscore this issue. In North America, 27% of banks displayed low readiness, followed by Europe with 31%, and Asia-Pacific (APAC) exhibiting a significant lag, with 48% of banks scoring low.