Rise of Non-Human Customers in Banking: A New Era Begins

The rise of non-human customers in banking is becoming increasingly significant, as highlighted by Brian Armstrong's comments on social media. He notes that while AIs currently cannot open bank accounts, they can utilize existing accounts for transactions. This shift is facilitated by technologies like 'BankGPT,' which allows bots to manage banking tasks such as checking balances and making payments. The integration of AI into banking is seen as an inevitable evolution, driven by open banking initiatives and the growing capabilities of AI systems. Shameek Kundu, former Chief Data Officer at Standard Chartered, emphasizes that the growth of non-human customers will be a major trend in the financial sector. As bots become more prevalent, banks will face increased competition, particularly on pricing, as these bots can quickly compare multiple offers. This competitive landscape will force banks to enhance their operational efficiency and explore new strategies to maintain their market share. The future of banking may see a shift from traditional customer interactions to API-based engagements, where bots represent clients in financial transactions. Each bot will have a unique digital wallet, allowing businesses to manage spending limits and track expenditures through a dashboard. This transformation necessitates a robust digital identity infrastructure to grant bots the necessary permissions to act on behalf of account holders. As the financial market adapts to these changes, the need for effective KYC processes for bots remains a challenge. The potential for bots to handle mundane financial tasks could significantly streamline operations for individuals and businesses alike, marking a new era in banking.