AI's Potential to Revolutionize Banking: A $2 Trillion Profit Boost by 2028

Citi, the leading global banking partner for companies with cross-border needs, a premier wealth manager and a valued personal banker in the United States, is pleased to announce the release of its new report titled Finance: Bot, Bank Beyond. This comprehensive study explores how may fundamentally transform both consumer and corporate banking experiences.

The report projects thatcould potentially boost the total profits of the banking industry to approximately $2 trillion by 2028, representing a nearly 9 increase from the projected $1.8 trillion in profit margins.1 This figure does not include non-bank financial sectors and underscores the profound impactmight have on the banking landscape.

holds transformative potential for banks across various aspects, including automating routine tasks to enhance efficiency, unlocking new data-driven insights, and augmenting employee capabilities by freeing them from mundane activities. Moreover, generativeis anticipated to significantly influence internal-facing operations like content management, information processing, coding, and software development.2

The integration of autonomous agents into the banking ecosystem could enable seamless execution of client decisions behind the scenes, improving both operational efficiency and customer satisfaction. The report also highlights that whilemay reduce certn low-skilled roles in operations and technology sectors, there will be an upsurge in demand for governance and compliance professionals.3 Challenges withtalent avlability are a common concern among banks and other industries surveyed.

In terms of job creation, the historical tr of technological adoption has not resulted in a reduction of the finance workforce. Instead, it has led to a shift in the skill set mix within the industry as new roles emerge alongside existing ones.4 Moreover,is expected to empower clients with better financial decision-making tools and enhance banking services through automation.

Citi's report underscores its commitment to safely integratingtechnologies while leveraging them to complement and amplify Citi's capabilities and workforce. As an industry leader in global banking, Citi strives to innovate responsibly to benefit both its stakeholders and society at large.

For more information on the findings of this study or inquiries about Citi Global Insights and Citi Global Perspectives, please contact Fiona Beukes via eml: [email protected].

1 Data source: Citi TTS Survey, April 2024.

2 Integration points withtechnologies are varied across multiple banking operations as highlighted by the study.

3 The report outlines potential shifts in employment trs and highlights talent avlability issues across sectors working ondevelopment.

4 Analysis based on historical trs in industry adoption of technology.

that this is an abridged version for the purposes of context and understanding; the full report offers a comprehensive analysis and detled insights into each of these points.
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