European banking leaders think AI will define the ‘bank of the future’ according to new research by Visa.

86 per cent of senior banking leaders in the region said they believe AI will reshape retail banking by 2030, with 90 per cent indicating their banks already use AI within their major business functions.

Intended outcomes for AI adoption include increased productivity and cost reduction, cited by 48 per cent of respondents it dubbed “Efficiency Seekers,” while 30 per cent cited improved customer experience and fraud prevention as a primary reason for investing in the technology, a group it dubbed “Trust Builders”.

Visa’s research found the benefits of AI adoption can transcend these narrow focuses. Among the Trust Builders, which the firm noted are primarily digital-first banks, AI drove measurable productivity gains, with 42 per cent of employees saving two or more hours per week through AI usage versus just 28 per cent among the Efficiency Seekers.

Just 15 per cent of respondents said pressure from competitors was a major factor in their AI investment, while seven per cent said their core focus is meeting regulatory requirements.

The analysis, carried out by Visa Consulting and Analytics (VCA), drew on responses from 325 senior decision-makers across 17 European markets.

Mandy Lamb, head of value-added services at Visa Europe, said: “AI will define the next generation of banking, but it won’t be delivered in isolated pilots or side projects. It will depend on how well banks rewire the core of their organisation to support it.

“The opportunity now is to build for scale with modern, flexible systems, connected data, and AI embedded directly into real-time decisions. Banks that get these foundations right will move faster, adapt more quickly, and deliver more secure, relevant and seamless experiences their customers are looking for.”

AI adoption in banks is already the subject of competition and debate. While regulators such as the Financial Conduct Authority are running AI testing with major banks and FinTechs intended to identify how the technology can improve functions such as investment support and anti-money laundering detection, other official bodies have issued public warnings over the threat the technology poses.

In June, the Financial Stability Board urged financial institutions to implement strict controls for AI deployment, and on 7 July the European Central Bank ordered eurozone banks to prepare AI cyber defence plans by the end of October.

Matt Comyn, chief executive of the Commonwealth Bank of Australia, also warned last month that enterprises will have to closely monitor the costs of AI tools and assess whether they are achieving a return on their investment, as the costs associated with the technology “do not scale on a linear basis”.

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