AI in Financial Services: A Turning Point Ahead
Artificial intelligence (AI) is poised to redefine the financial services landscape, with 2025 marked as a potential turning point, according to FF News. Speaking at Money20/20 USA, Ed Maslaveckas, CEO of Bud, highlighted both the current impact and future potential of AI, focusing on its transformative applications in banking.
Maslaveckas acknowledged the widespread buzz around generative AI but emphasized the long-standing contributions of machine learning (ML) and neural networks in the sector. Bud, for instance, developed a transaction enrichment language model back in 2018, showcasing how AI foundations have been in play for years.
According to The McKinsey Global Institute, generative AI could add $200 billion to $340 billion annually to the global banking sector. Key use cases include personalization, customer segmentation, and process optimization. Maslaveckas explained that AI excels in processing the data-heavy operations driving banks, streamlining workflows, and enhancing efficiency.
Maslaveckas introduced the concept of «agentic AI,» which goes beyond current conversational AI tools. While traditional AI agents offer recommendations, agentic AI takes proactive actions on behalf of users, such as optimizing account settings or applying for financial products.
“The biggest problem in financial services is customer apathy,” Maslaveckas noted. By reducing manual intervention, agentic AI could empower customers to take advantage of financial opportunities effortlessly. However, this innovation comes with challenges, particularly regulatory complexities that require careful navigation.
Fintechs, known for their agility, may have an edge over traditional banks in adopting agentic AI. Maslaveckas drew parallels to the rise of neobanks like Monzo and Revolut, suggesting that fintechs are better positioned to capitalize on AI-driven disruption.
He also highlighted the U.S. market’s proactive consumer base and tech ecosystem, which could accelerate AI innovation faster than in the UK. However, regulatory compliance remains a significant hurdle for both banks and fintechs.
As the financial services industry embraces AI, Maslaveckas believes the foundational work being done today will yield transformative results in the coming years. He emphasized that traditional banks must adapt quickly to remain competitive as fintechs continue to push boundaries.
“Everyone’s tooling up,” he remarked, optimistic about AI’s ability to revolutionize customer experiences and banking operations. The question remains whether established institutions can keep pace or whether fintechs will lead the next era of financial services.