A new way to serve customers: Berk Ozturk (DefineX) on how AI is redefining banking
Banks across the world are shifting away from static digital interfaces toward systems that leverage automation to anticipate what customers need before they ask for it. According to Berk Ozturk, principal at consultancy DefineX, this shift marks a turning point for the entire industry.
Generative AI is reshaping the bankingsector by automating administrative workflows and transforming front-line customer interactions. By taking over repetitive tasks, these tools reduce operational headcount and streamline internal operations. At the same time, it enhances client engagement through intelligent conversational assistants, tailored product marketing, and individualized rewards programs.
“The future of digital banking is intelligence, not interfaces. Banks will move from being reactive platforms to proactive financial partners, using AI to understand intent, anticipate needs, and make banking almost invisible for customers,” says Ozturk.
Competition among digital banks will no longer center on features or app design, he argues. Instead, the decisive factor will be how well a bank’s AI understands its customers.
“Digital banks will no longer compete on features; they will compete on intelligence. AI will decide when to engage, how to personalize, and how to support every financial moment, securely and in real time,” he adds.
The rise of agentic AI
Central to this transformation is what Ozturk calls intent-driven agentic AI, systems that act rather than simply respond.
“Instead of waiting for clicks, AI agents will understand customer intent, execute transactions through conversation, and proactively guide financial decisions. Personal finance management will move far beyond dashboards. It will become a living financial co-pilot: Real-time, contextual, and deeply personalized,” he explains.
This vision builds on a broader industry trend already underway. Generative AI, a branch of AI focused on producing new content from text to financial data, has been reshaping banking operations for the past few years. Chatbots powered by generative AI can now deliver instant, tailored responses to customer questions about loans, interest rates, and credit card terms, reducing the friction that often pushes customers toward competitors.
One recent industry study found that credit card sales through digital onboarding reached only 9%, compared with 27% for applications completed in physical branches, a gap that points to how much digital journeys still need improvement.
Cost savings and personalization
Cost efficiency is another driver behind AI adoption. Taking a credit card application through a mobile channel costs roughly 98% less than processing the same application in a branch.
Generative AI can use this savings to fund more sophisticated personalization, analyzing a customer’s spending habits, transaction history, and online behavior to generate tailored offers, such as a travel rewards card presented to someone who frequently books flights or hotels online.
Major institutions have already begun applying these tools at scale. JPMorgan built an AI investment assistant called IndexGPT to analyze data and identify investment opportunities for clients, while Goldman Sachs has used generative AI to automate 40% of its software engineers’ coding work, freeing up time for higher-value tasks.
Banking becomes an ecosystem
Ozturk also pointed to a structural change in how digital banks operate: “We are seeing ecosystem-driven banking take shape. Digital banks are no longer closed platforms; they are integrating with third-party apps, investment platforms, and marketplaces,” he notes.
“Banks are becoming financial hubs where payments, investments, insurance, and lending come together through embedded finance infrastructure.”
This shift extends to the everyday customer experience as well. Instead of dashboards and reports, AI tools can help customers manage their daily spending, their savings, and enable investing all seamlessly in the background with fewer steps than before and with the addition of smart suggestions.
Why the Middle East is positioned to lead
Ozturk says he believes the Middle East holds a distinct advantage in scaling AI-first banking faster than most other regions. That is, in part, because of the robust digital infrastructure already in place.
“In the Middle East, strong regulation, high mobile adoption, and a young digital customer base mean AI-first digital banking can scale faster here than in most regions,” he says.
He added that these same conditions give the region a head start in regional transformation: “With strong regulation, high mobile adoption, and a young digital customer base, the Middle East is uniquely positioned to scale this transformation in the region.”
As banks continue to integrate AI into onboarding, retention, and daily financial management, the technology is increasingly viewed not as a support tool but as a core strategic asset. From chatbots handling complex applications to AI systems detecting early signs of customer churn, the direction of travel is clear: Banking is moving toward systems that think, anticipate, and act, redefining what it means to serve a customer in real time.
Indeed, the banking industry has been investing heavily in AI in recent years, with the sector’s overall AI spending projected to reach nearly $97 billion by 2027, up from $35 billion in 2023. Wells Fargo and BNY have already rolled out enterprise-wide AI platforms to standardize AI use across their operations, while research from Gartner found 40% of banks globally may be investing in similar AI application development platforms over the course of this year.
