In a groundbreaking move that could redefine the Australian banking landscape, a major bank has announced a major shift towards artificial intelligence (AI) integration across its operations. This initiative, in partnership with global professional services company Accenture, marks a significant step forward in the adoption of AI within the financial sector.
This Big Four bank’s foray into AI is not entirely new as it has previously utilised AI-powered agents for its software programming tasks. However, the latest development involves an Australian-first agentic AI tool, which boasts advanced reasoning capabilities to tackle complex, multi-step problems.
This innovative technology is set to expand across various facets of the bank’s business, from product development to customer service, and even in the detection of scams and fraud.
Pieter Vorster, Westpac’s general manager for data platforms, expressed his enthusiasm for the limitless possibilities that AI presents for the bank. ‘The application of these agents is growing across the bank, and we have identified multiple use cases,’ he said.
‘Products, customer services, scams and fraud are all part of the mix. Its potential is bank-wide.’
The agentic AI tool is designed to process vast amounts of data from diverse sources, enabling it to identify issues, devise strategies, and carry out tasks with remarkable efficiency. In one striking example, Westpac revealed that an AI agent completed a task in just one hour—a job that would typically take a human engineer around six days.
The bank envisions leveraging this technology for a range of services, including mortgage applications, compliance checks, new account sign-ups, and reviewing approval documentation.
Vorster highlighted the transformative impact of AI on staff workflow, noting that ‘the biggest shift with agentic AI is getting autonomous squads of agents working together to fulfil a task.’
These AI agents are not just tools but are envisioned as ‘quasi-employees,’ capable of understanding language and instructions and collaborating with human teams to execute tasks. This unique approach could revolutionise the way banks operate, making processes more streamlined and efficient.
Accenture’s collaboration with Westpac is part of a broader trend, as the consultancy firm assists several banks worldwide in enhancing customer service, sales, compliance, and knowledge management through AI.
The Big Four banks in Australia are all exploring AI’s potential to transform the sector. Commonwealth Bank (CBA) recently announced a five-year collaboration with Amazon Web Services (AWS) to accelerate AI adoption, including the CommBiz Gen AI messaging service to deliver ‘faster, safer and more personalised digital banking services.’
Meanwhile, the National Australia Bank (NAB) is taking a cautious approach, focusing on ensuring that AI development is guided by ‘data, risk, and ethics’ considerations.
‘We want to ensure we are investing in the right place and not just building ‘cool toys’ that do not meet our customers’ needs. That’s why the development of use cases for Gen AI is the responsibility of individual business units,’ said Les Matheson, NAB’s executive chief operating officer.
ANZ has also joined the AI movement, partnering with Microsoft to launch an AI Immersion Centre at its Melbourne headquarters to ‘better support adoption and innovation by their teams’ and ‘transform banking services.’
However, despite the advancements in AI, consumers still prefer human interaction. A survey conducted by Katana revealed that 49 per cent of people preferred interacting with a real person, compared to just 12 per cent who favoured AI chatbots. This suggests that while AI can offer efficiency and personalisation, the human touch is still highly valued in customer service.
As AI continues to evolve, with generative AI promising more advanced and tailored responses to customer queries, the banking industry must balance technological innovation with the personal service that customers appreciate.
Westpac’s major AI change could be a harbinger of the future of Australian banking, where AI and human expertise work hand in hand to deliver exceptional service.
We invite our YourLifeChoices readers to share their thoughts on this AI revolution in banking. Have you had experiences with AI in your banking interactions? Do you welcome these changes, or do you have reservations about the increasing role of AI? Let us know in the comments below.
Also read: Major bank’s move to offshore jobs sparks data concern and backlash
Wow, AI is going everywhere, but AI is still NOT infallible, and depends on a large number of variables !!!