Two decades ago, visiting your local bank was a distinctly human experience. You’d be greeted by familiar faces, wait in line with neighbours, and discuss your financial goals with someone who understood your story.
Today, that landscape has changed dramatically. Now, branches are quieter, lines have reduced and in their place stand digital screens, interactive machines and AI-driven advisers.
We are now firmly in what management consultants Accenture calls “The Age of AI” – a transformation as profound (or more so) than the digital revolution that birthed Amazon and Google a quarter of a century ago.
But as someone who has spent a career at the intersection of technology and finance, I find myself asking: are we building banks that are functionally correct but emotionally void?
Let’s start with the facts. Today, AI can handle up to 75 percent of all banking work. The productivity gains are undeniable: AI could boost UAE banking’s GDP contribution by up to 14 percent by 2030, according to Finastra.
Banking is about understanding the dreams behind a mortgage application, the anxiety behind a loan
Around 71 percent of the UAE’s financial institutions have deployed or enhanced AI capabilities over the past year, setting the stage for significant economic gains.
In the global arena, Morgan Stanley’s AI assistant, for example, has slashed administrative workloads for advisers by 40 percent, freeing them to serve 15-20 percent more clients. OCBC Bank in Singapore rolled out an AI chatbot to all 30,000 employees, enabling them to work 50 percent faster.
These examples illustrate a critical point: AI is not about replacing humans, but augmenting them. The technology is best deployed to handle repetitive, low-value tasks, allowing human professionals to focus on what truly matters – building relationships and understanding clients’ needs.
The risk of becoming soulless
Yet, there is a flip side. Despite all this technological progress, 42 percent of consumers say they can’t distinguish one bank from another. In our pursuit of efficiency, we risk creating “banking vending machines” – functionally perfect, but utterly soulless.
This is not a theoretical concern. While 97 percent of banks have adopted some form of AI strategy, only 12 percent have a clear roadmap for implementation. It’s akin to handing a teenager the keys to a Ferrari without a driving lesson. The result? Impressive technology, but a customer experience that often feels generic and transactional.
AI’s strengths are clear. But let’s not lose sight of the human element. Banking is not just about processing transactions or approving loans. It’s about understanding the dreams behind a mortgage application, the anxiety behind a business loan, or the hope behind a college savings plan. Can an algorithm truly understand these emotions?
The path forward: augmented intelligence
In wealth management, where human judgment is paramount, 67 percent of services now report widespread use of AI. Yet the most successful implementations are those where AI handles the mundane, freeing human advisers to do what they do best: build trust, offer empathy and guide clients through life’s financial decisions.
Looking ahead, I see the industry moving from simple automation to “augmented intelligence” – solutions that enhance, rather than replace, human capabilities. Some banks are even experimenting with AI that can detect emotional cues and adapt responses accordingly.
Of course, significant challenges remain: data privacy, ethical considerations, regulatory compliance and, above all, maintaining customer trust. Over half of banks report a lack of internal AI skills, even as 71 percent increase their IT budgets for AI. This is a recipe for missteps if not managed carefully.
So, will AI destroy the human touch in banking? My view is that the future belongs to those who use AI to amplify – not eliminate – human connection.
The winning formula will be banks that let technology handle the routine, while empowering their people to focus on empathy, understanding and trust.
AI can process transactions, but only humans can truly understand aspirations. The challenge – and the opportunity – is to find the right balance.
Suvo Sarkar is the vice chairman of Wealthbrix Capital Partners and the host of the banking podcast, Money Majlis
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