Banking’s AI Gap: Faster Tasks, Same Results
About this episode
This episode discusses the rapid adoption of AI in banking and the lack of impact on earnings despite technological advancements.
We won the adoption argument. Every hand in the room. And the income statement didn't notice. Four years ago, Jim Marous asked a room of bankers how many had used an AI tool in their work, and fewer than one in four hands went up. Last week he asked the same question and nearly every hand in the room went up, many of them belonging to bankers over 50. Adoption in the banking industry has moved faster than almost anything Jim has watched in his career. Over the same period, the share of organizations that can point to any impact of AI on their earnings has not changed. This episode opens with a recurring pragmatic check-in on where banking actually is with AI, and it locates the gap elsewhere than in the technology. Banking has digitized the same way three times: paper became PDF, PDF moved behind a portal, and now the work inside the queue has been sped up. Every round improved the surface the work sits on. None of them touched the space between two departments. Mortgage lending shows the result on the income statement, where closings have come down roughly two weeks since 2021 while the cost to originate at a bank or credit union has stayed flat and pull-through has declined…
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