Artificial intelligence is set to bring sweeping changes to the financial services industry, particularly in banking, by significantly boosting efficiency, cutting costs, and unlocking new avenues for innovation, according to Deloitte’s latest FSI Predictions report.
The analysis highlights that AI will impact everything from software development to fraud prevention. In the current environment of low growth, uncertain interest rates, and geopolitical instability, technological innovation—especially AI—is becoming increasingly vital for maintaining competitiveness.
Deloitte forecasts that AI could revolutionize software development in the banking sector, potentially reducing software investment costs by 20–40 per cent by 2028. This could mean annual savings of up to 1.1 million dollars per engineer.
Tamás Schenk, a partner at Deloitte Digital, emphasized that companies embracing AI early and strategically will be best positioned for success in the coming decade. He noted that innovation will differentiate the winners in a rapidly evolving market.
The report also predicts that intelligent technologies will fundamentally transform customer service. Personalized, round-the-clock services—such as facial recognition and voice interaction—are expected to become the norm. Meanwhile, AI could play a major role in fraud detection, for instance, by filtering out false insurance claims.
However, the rise of AI also presents challenges, particularly in developing robust governance models and ensuring ethical usage. With deepfakes and digital fraud on the rise, responsible deployment will be essential.
AI-powered solutions, Schenk added, offer ways to manage the sector’s key challenges: automating data collection, improving the speed and quality of decision-making, and enhancing regulatory readiness. In Deloitte’s view, the financial institutions of the future will be those that successfully merge traditional banking practices with cutting-edge technology, maintain a strong customer focus, and adapt continuously to market changes.
Tapping into AI’s potential—while responsibly managing associated risks—will be critical for long-term growth and competitiveness in the financial sector.
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