Banks are adding AI to a model that AI makes obsolete
Why banks must rebuild their operating models around AI
by https://www.techradar.com/author/dmitry-volkov · TechRadarOpinion By Dmitry Volkov Published 24 September 2026
Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter
For decades, banking technology has been built around a simple sequence: a person makes a financial decision and the bank’s technology processes it. A customer decides to open an account, move money into savings or apply for a loan, and the bank’s systems execute that instruction.
Artificial intelligence can potentially reverse that sequence. Instead of waiting for a human to specify an action, AI can interpret the person’s goals, understand the financial context around that goal, and determine what happens next. It could recognize that a customer is likely to face a cash shortfall, identify the available ways to address it, and potentially execute the appropriate action.
Dmitry Volkov
Founder of Molit.ai and Social Discovery Ventures.
McKinsey estimates that generative AI could create $200 billion to $340 billion in annual value for the banking industry. Yet much of the industry is adding AI to systems designed for the old model, not rebuilding the model around AI.
Latest Videos FromTechRadarWatch full video here:
The problem is that AI inherits the same product silos and process boundaries. Banks gain another layer of technology, but not the cross-system decision-making needed to realize AI’s full potential.
The first wave is still about better processes
The most visible applications of AI in banking are often the easiest ones to deploy. Banks are using AI tools to improve customer service, automate fraud detection, personalize recommendations, summarize documents and accelerate credit decisions. Lloyds Banking Group, for example, says more than 50 AI use cases were rolled out across the group in 2025, generating around £50 million in value, with more than £100 million in additional value expected in 2026.
McKinsey has made a similar observation based on the industry's experience with generative AI. Simply adding AI on top of existing processes will not produce transformational change and can instead create another layer of technical debt.
The difference between an AI-native architecture and a chatbot attached to an existing system can be tested with three questions.
Are you a pro? Subscribe to our newsletter
Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed!
Contact me with news and offers from other Future brandsReceive email from us on behalf of our trusted partners or sponsors