Agentic banking will cut app use

Agentic banking is set to dramatically reduce the amount of time users spend interacting with their mobile banking applications, according to industry experts. The shift comes as artificial intelligence evolves beyond its current role of providing information or answering questions to actively performing financial tasks on behalf of users. This transition marks a major phase in the ongoing digital transformation of banking, which has already moved most transactions from physical branches to smartphones and online platforms. The move toward agentic banking follows the widespread adoption of digital banking solutions over the past decade. In Greece, for instance, nearly all banking transactions, 98 percent, are conducted either online or via ATMs. This trend reflects a global shift away from traditional brick-and-mortar banking, driven by convenience, speed, and technological advancements. Now, the focus is turning toward automation that requires minimal human intervention. Under agentic banking, AI systems will take on more complex roles, executing multi-step processes based on user directives. Instead of manually navigating through apps to make payments or manage accounts, users could simply instruct the system to handle specific tasks. For example, a customer might tell the AI agent, “Pay the bills due this week if there's enough money in my account.” The AI would then identify the relevant payments, verify the available balance, and execute the transactions automatically, assuming proper authorization. Currently, users typically open their banking apps to review pending payments and initiate them individually. With agentic banking, the need for such manual input will diminish. Users may still access the app, but primarily to authorize or adjust parameters rather than perform each transaction themselves. This change is expected to streamline interactions with banking services, reducing the number of steps required to complete routine financial activities. Industry insiders suggest that the implementation of agentic banking is imminent. A senior banker speaking to Kathimerini noted that clients have historically used banking apps to complete transactions directly. However, in the coming years, the primary function of these apps will likely shift to approving or modifying operational rules. Daily financial activities, such as bill payments and fund transfers, will increasingly be handled autonomously by AI agents. The technology behind agentic banking relies heavily on predefined security protocols and user permissions. These safeguards ensure that AI actions remain within acceptable boundaries, preventing unauthorized transactions or breaches. While the exact mechanisms governing these systems are not fully disclosed, banks emphasize that they are designed to operate transparently and securely. In addition to reducing user interaction, agentic banking is anticipated to enhance efficiency and accuracy in financial operations. By minimizing human error and streamlining workflows, banks aim to improve service quality while maintaining high levels of security. This approach aligns with broader trends in the financial sector, where automation and AI are being integrated into various aspects of customer service and back-end operations. As banks continue investing in digital infrastructure, the transition to agentic banking represents a logical progression in their efforts to modernize financial services. The shift underscores the growing reliance on technology to meet evolving consumer expectations and operational demands. With AI taking on more active roles, the future of banking appears poised for further innovation and transformation.