AI-driven revolution to lift global banking revenue  $301bn by 2030- Report

Joy Agwunobi

Artificial intelligence (AI) is emerging as the game-changer in the banking industry, poised to revolutionise customer interactions, backend processes, and ultimately the bottom line. In a recent report by Stocklytics.com, AI is projected to add $301 billion to global banking revenues by 2030, spotlighting its critical role in shaping the financial services sector.

The Stocklytics.com report underscores the banking sector’s shift toward a more customer-centric, tech-driven approach, with AI taking center stage as a key enabler.

Banks across the globe are turning to AI to deliver personalised client services, detect fraud, and boost operational efficiency, signaling a departure from conventional banking practices. The report also touched on other benefits that AI has brought to the sector, including productivity gains and enhanced customer experiences.

AI’s transformative impact on banking revenues is already apparent, with the sector set to generate an additional $143 billion in 2023, a figure expected to climb to $164 billion by the end of 2024.

The Stocklytics.com report reveals that the banking sector in North America and Asia Pacific are leading the charge in AI adoption, with these regions forecasted to add an impressive $49 billion in revenue in 2024 through the use of AI.

Europe is also poised to benefit significantly from the AI revolution in banking, contributing an extra $47 billion in revenue in 2024.

By 2027, the Asia Pacific region is set to lead in AI-driven banking revenue, with earnings projected to reach $71 billion; a 45 per cent increase from 2024. North America and Europe will also see significant gains, each contributing around $63 billion, as AI continues to revolutionise financial services in these markets.

The report projected that by 2030, the global banking sector will generate over $300 billion from AI, with Asia Pacific leading at $99 billion, followed by Europe at $86 billion, and North America at $76 billion. Other regions, including the Middle East and Africa, are expected to contribute $20 billion, while South America is projected to add $18 billion.

As artificial intelligence (AI) continues to redefine global banking, Nigerian banks are increasingly harnessing this technology to enhance their operations and deliver personalised customer experiences. While AI adoption is still gaining momentum in Nigeria, its impact is already evident in key areas such as fraud detection, personalised banking services, and operational efficiency, aligning with global trends.

Many financial institutions in the country are exploring AI-driven predictive analytics to better anticipate market trends and customise products to meet specific customer needs. AI-powered chatbots have also been integrated across several banks, providing 24/7 support, and handling customer queries.

Globally, leading banks are demonstrating the transformative potential of AI, setting benchmarks that Nigerian banks can aspire to.

According to the Stocklytics report, AI’s influence extends far beyond boosting revenues; it is fundamentally changing how banks operate and engage with customers. For instance, Bank of America’s AI-driven chatbot, Erica, has become an essential tool for customer engagement, offering round-the-clock support and handling over 1.5 billion interactions since its launch in 2018. Similarly, Barclays Bank’s use of AI for real-time fraud detection highlights the critical role of technology in securing financial transactions.

The report also highlighted Bank of America’s AI platform, Glass, which analyses market trends and anticipates customer needs, enabling the bank to offer personalised investment advice and stay ahead of market shifts.

In Nigeria, similar technological advancements are beginning to take root, according to reports,  AI-driven fraud detection systems are being employed to monitor transactions in real time, preventing unauthorised activities and enhancing security for customers.In addition, Nigerian banks are exploring AI applications in credit scoring, where advanced algorithms analyse vast amounts of data to assess creditworthiness more accurately and fairly.

Edith Reads, a financial analyst at Stocklytics, highlighted that the successful implementation of AI in initial trials has spurred a growing trend of adoption across the banking sector.

“The enhancements in productivity and customer experience driven by AI have boosted the appeal of banks, playing a significant role in the substantial revenue growth witnessed,” she noted.