Banks could face a potential hit of up to $170 billion if they fail to adjust their business models in response to customers increasingly using artificial intelligence to manage their finances, a McKinsey report warns.
The consultancy firm highlighted that the rise of agentic AI—autonomous bots capable of making financial decisions—could significantly impact profits earned from low-interest accounts. “Imagine you have an AI agent that says: ‘Hey, you could save $2,000 a year by moving your money,’” said Pradip Patiath, a senior partner at McKinsey. “It automates a lot of the inertia that is in the system today.”
Currently, consumers hold $23 trillion of the $70 trillion in bank accounts in near-zero interest-rate accounts, with the remainder in low-yield options. McKinsey predicts that widespread use of AI agents could reduce banks’ profits by roughly 9%, or $170 billion, potentially pushing average returns below the cost of capital if banks fail to adapt.
While AI is expected to deliver cost savings of 15% to 20% to the banking sector, McKinsey notes that competition will likely erode most of these gains over time, benefiting customers more than the banks.
However, the consultancy adds that banks which adopt agentic AI early and optimize their operations before competitors could gain a “first-mover advantage before the water level resets,” Patiath said.
