Banks Adopt AI, Accelerating Digital Transformation Post-Pandemic
Dave Murphy, Head of Financial Services for EMEA & APAC at Publicis Sapient, shares insights on how banks and businesses are adapting to modern transformation using AI. His perspective is grounded in Publicis Sapient’s expertise in guiding organizations through technological shifts, a role it has played since its founding in the early 1990s.
Publicis Sapient, established in the early 1990s, initially positioned itself as a major technology consultant. Today, it operates in 72 countries with over 20,000 employees, translating technological knowledge into practical solutions for businesses and customers.
The Web’s Impact on Business Transformation
Murphy joined the company in 1997, a key moment for technology. The introduction of the World Wide Web was reshaping businesses and communication, prompting companies to rethink their operations and customer interactions.
“It wasn’t just the introduction of the World Wide Web itself but the moment companies and corporations started to adopt it that fundamentally changed the way they engaged their customers and thought about their operations,” Murphy explains. “Because you could no longer hide the rest of your company behind a human, especially in the case of banks or similar industries. People wanted direct interaction, all the way to the back office, in order to serve themselves.”
This shift compelled businesses to reevaluate their processes, leading to a more transparent and customer-centric approach. The transformation was gradual but profound, with digital adoption among high-street bank customers reaching 35% to 40% by 2014 or 2015. Today, it stands at 80% to 90%, reflecting the Web’s lasting impact.
The pandemic accelerated this trend, forcing businesses online. As essential services, banks had to meet consumer demand, solidifying their digital transformation. This shift turned banks into fully digital businesses, a remarkable change for institutions that have existed for 350 years.
AI’s Role in Banking’s Evolution
Murphy observes a similar shift with agentic AI in financial services. While machine learning drives personalization, agentic AI, such as chatbots, is more recent and requires careful implementation.
“A number of institutions are only now starting to bring agentic AI into that space – the reason being that with agentic AI generally, you need to put the right controls and guardrails in place before you can introduce it,” Murphy notes. He adds, “In many ways, what we’re seeing is organisations starting from the back office and moving toward the front, so they can get comfortable that it’s working before they put it in front of customers.”
Fintechs face choices in adopting AI. They can use it as an assistant to improve workflows or rethink processes entirely. The key, Murphy stresses, is context. “Fintechs that get that context right for whatever problem they’re solving, and become genuine experts in that field and how they deliver and improve it, will be able to offer real added value,” he says.
As AI integrates into banking, from customer service to transactions, its impact will be as fundamental as the Web’s arrival. Publicis Sapient, with its decades of experience, continues to guide businesses through these technological waves.
The Gradual Adoption of AI in Banking
Machine learning platforms were introduced in high-street banks around 2016-2017, enabling data scientists to improve AI capabilities over time. This foundational work laid the groundwork for more advanced AI applications.
Murphy emphasizes the need for careful consideration in the agentic AI space, as it is not always 100% accurate. Banks must think critically about how they introduce AI to customers, ensuring a seamless and trustworthy experience.
The predictive element of AI has already reached customers, but agentic AI is still being refined and tested. This iterative process ensures that AI systems meet the high standards required in financial services.
