Artificial intelligence is becoming a major force behind the future of banking, with financial institutions expected to rethink how they operate, serve customers and compete in the market. According to banking executive Khaled Barakat, AI has moved beyond being a supporting technology and is now driving a fundamental shift in the banking industry.
Barakat said the biggest opportunity for banks lies not only in adopting AI but in using it to redesign their business models. He believes this shift will help banks unlock new growth opportunities, improve customer experiences and strengthen their position in an increasingly competitive market.
AI Creating New Growth Opportunities
Barakat said the next stage of competition in banking will not be between institutions that use artificial intelligence and those that do not. Instead, he explained, it will be between banks that simply improve their existing operations and those that fully rebuild their business models around AI.
“The coming years will witness a fundamental transformation in banks’ business models, redefining the traditional rules of competition across the sector,” he said.
He noted that one of AI’s biggest advantages is its ability to help banks reach customer groups that have traditionally had limited access to financial services. By using advanced credit assessment models based on behavioural and alternative data, banks can assess customers who do not have conventional credit histories.
According to Barakat, this approach can expand financial inclusion while creating new business opportunities for financial institutions. It also allows banks to grow their customer base by offering products to millions of people who were previously underserved.
He added that the real value of artificial intelligence is no longer in owning large amounts of data but in turning that information into faster and smarter decisions. This enables banks to provide the right products to customers at the right time, improve cross-selling opportunities, strengthen customer relationships and increase revenue.
Building Banks for the Future
Barakat cautioned that many financial institutions risk limiting the benefits of AI if they treat it only as a technology project.
“True returns require redesigning operating models and business processes while investing in workforce development, rather than relying on technology adoption alone,” he said.
He also highlighted several areas where banks still have significant room for growth, including developing alternative credit assessment models, expanding financing for merchants and small and medium-sized enterprises, and building strategic partnerships with e-commerce and delivery platforms.
According to Barakat, financial institutions that move quickly to invest in these areas will be better positioned to lead the next phase of growth in the banking sector.
He concluded that artificial intelligence should be viewed as a long-term strategic opportunity rather than a tool for improving efficiency alone.
“Artificial intelligence represents a strategic opportunity to redefine the banking landscape rather than simply improve operational efficiency,” Barakat said, adding that banks that successfully reinvent their business models around AI will be the industry leaders in the years ahead.
