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Title: McKinsey Says Bank Profits Face Possible $170 Billion AI Hit

Link: https://news.slashdot.org/story/25/10/23/1452...

Banks face a hit to their bottom lines of as much as $170 billion if they
don't adapt their business models to respond to customers turning to AI to
optimize their finances. From a report: The consultancy firm predicted that
customer uptake of agentic AI -- effectively autonomous bots -- would hit the
profits banks earn from customer money in low interest accounts, according to
a report from McKinsey published Thursday. "Imagine you have an AI agent that
says: 'Hey, you could save $2,000-a-year by moving your money,'" Pradip
Patiath, a senior partner at McKinsey, said. "It automates a lot of the
inertia that is in the system today." Consumers hold $23 trillion out of a
total of $70 trillion in accounts with close to zero interest rates, while
the remainder is held in accounts that often pay relatively low rates,
according to the research. Customer use of AI agents could lead to a 9%
profit drop for banks, some $170 billion, if they do not change their
business models. That could push average returns for banks below their cost
of capital, the consultants said.

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