Asia Insurance Post
  • Home
  • Articles
  • Blog
  • Data
  • Facts
  • Editorial
  • Interviews
Select Page

Generative AI could boost bank revenues by 6 pc in next three years: Accenture

by AIP Online Bureau | May 1, 2024 | Data, Eco/Invest/Demography, Technology | 0 comments

The report also delved into the transformational effect of generative AI on different banking roles. It categorized these roles into three main groups. Approximately 41 per cent of banking occupations, primarily involving data collection and processing, have a high potential for automation. Generative AI could enhance speed, accuracy, and cost-effectiveness in these tasks

New Delhi:

Banks across the globe could witness a substantial increase in revenues over the next three years by incorporating generative AI, as suggested by a recent report from Accenture. The report highlights that banks embracing this technology could experience a revenue surge of up to 600 basis points (bps) within this timeframe.

Accenture’s analysis, which involved studying more than 150 large banks worldwide, including public and private sector banks in India, revealed that the adoption of generative AI could significantly enhance employee productivity by up to 30 per cent. Additionally, it could lead to a 300 bps increase in return on equity and a 20 per cent rise in operating income.

The report assessed how generative AI would impact various banking tasks based on publicly available employee data. It analysed how the technology could streamline language-related tasks, thereby freeing up employees’ time for more strategic work. This efficiency improvement could lead to cost savings of 1 per cent-2 per cent and a reduction of up to 400 bps in cost-to-income ratios.

The report also delved into the transformational effect of generative AI on different banking roles. It categorized these roles into three main groups. Approximately 41 per cent of banking occupations, primarily involving data collection and processing, have a high potential for automation. Generative AI could enhance speed, accuracy, and cost-effectiveness in these tasks.

Around 34 per cent of bank employees, such as credit analysts and relationship managers, who rely heavily on judgment, could be empowered by generative AI tools. About 25 per cent of bank employees, including customer service agents, could benefit from both automation and augmentation, thereby improving service quality and efficiency.

The Roadmap for Enterprise-wide Adoption To achieve success with generative AI, banks need to gain strong board-level sponsorship and support from the C-suite, develop a robust data foundation and management approach, establish a secure AI-enabled cloud infrastructure.

Manoj Singodia, MD and Lead – Financial Services at Accenture in India, emphasized the need for a holistic and long-term strategy for generative AI adoption.

He said, “To unlock generative AI’s full potential, banks in India need to adopt a holistic and long-term strategy such that it integrates into their value chains. This will require reimagining traditional processes keeping AI at the core and building a robust foundation of data and digital powered by cloud.”

Accenture’s analysis involved studying 2.7 million banking employees in the US, analyzing 170 roles and 3,500 tasks they perform. Financial implications for banks were modeled based on data from the largest 154 banks globally over a 12-month period ending September 2023.

Submit a Comment Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • Govt unveils scheme with up to Rs 9.6 lakh incentive on purchase of electric trucks under PM E-DRIVE
  • Asia Index launches BSE Insurance Index
  • IRDAI board meet on July 14, likely to approve new licenses
  • Extreme Weather: Euro Zone could lose 5% of GDP, says ECB
  • UP govt sets July 31 deadline for kharif crop insurance; farmers must report damage within 72 hours

Categories

  • Articles
  • Banking & Bancassurance
  • Blog
  • Breaking News!
  • Briefs
  • Climate, Environment, Renewable Energy
  • Data
  • Disaster & Management
  • Eco/Invest/Demography
  • Editorial
  • Events
  • Facts
  • Features
  • Health
  • Indian News
  • Intermediaries
  • International News
  • Interviews
  • Life
  • Main Menu
  • Non-Life
  • Pandemic
  • Pension & Social Security
  • Policy
  • Regulation
  • Reinsurance
  • Risk Management
  • Simple
  • Technology
  • Trends, Facts
  • Uncategorized
  • Wealth Management/ Philanthropy
  • Workplace/Employee Benefits
  • Home
  • Articles
  • Blog
  • Data
  • Facts
  • Editorial
  • Interviews
  • Eco/Invest/Demography
  • Indian News
  • International News
  • Health
  • Non-Life
  • Pandemic
  • Technology
  • Risk Management
  • Reinsurance
  • Banking & Bancassurance
  • Wealth Management/ Philanthropy