Banks face a hit to their bottom lines of up to $170 billion if they do not adapt their business models to respond to customers turning to artificial intelligence to optimize their finances.
The consultancy predicted that customer adoption of agentic AI — essentially autonomous bots — would erode the profits banks earn from customer money held in low-interest accounts, according to a McKinsey report published Thursday.
“Imagine you have an AI agent that says, ‘Hey, you can save $2,000 a year by moving your money,’” says Pradip Patiath, a senior partner at McKinsey. “It automates a lot of the inertia that is in the system today.”
The research shows that consumers hold $23 trillion out of a total of $70 trillion in accounts with near-zero interest rates, while the rest is in accounts that often pay relatively low interest.
Customer use of AI agents could lead to a 9 percent drop in profits for banks, about $170 billion, if they don’t change their business models. That could push average returns for banks below their costs of capital, the advisers said.
While the banking industry is expected to save between 15 and 20 percent in costs with AI, this will likely be outcompeted over time. “Competition is likely to erode profits for banks and most of the benefits will accrue to customers,” the report said.
However, there is likely an upside for banks that adopt agentic AI and reduce their costs versus their competitors. Early adopters will likely “get a head start before water levels recover,” said McKinsey’s Patiath.
More stories like this are available at bloomberg.com
Published on October 23, 2025
#McKinsey #bank #profits #face #potential #billion #hit