Early AI adopters set to dominate European banking market - Visa study

Artificial intelligence will fundamentally reshape retail banking by 2030, with early adopters set to significantly outperform laggards, according to a Visa survey of European industry players, Finextra.com reports.  

But, a new study from Visa Consulting and Analytics, based on responses from 325 senior decision-makers across 17 European markets, shows that this disruption is only set to accelerate as banks move from experimentation to execution.

More than 90% of European banks already use some form of AI across their major business functions and 86% of respondents believe AI will reshape retail banking by 2030, with 61% expecting early movers to dominate their markets.

Almost half of banks continue to anchor investment around operational efficiency or employee productivity, while fewer than one in three cite customer experience or fraud prevention as their primary AI driver.

Where AI is applied makes a critical difference: organisations deploying it in high volume, real-time environments that improve customer outcomes - including real-time decisioning, fraud detection, and personalised services - are 40% more likely to achieve transformational gains, says the study.

By contrast, where AI is applied more peripherally - such as in product development or lending - its impact is more limited and tends to plateau sooner.

The research highlights how banks are taking distinct approaches to AI adoption, and how those choices are shaping outcomes. Around half of banks are what Visa calls “Efficiency Seekers”, focused mainly on cost reduction and operational efficiency. Nearly a third are “Trust Builders” prioritising AI investment around customer outcomes, while “Competitor Chasers” (15%) are investing in response to market pressure. A small group, “Compliance Keepers” (seven per cent), focus primarily on meeting regulatory requirements.

According to the report, “Trust Builders” stand out. They are more common among digital-first banks and are far more likely to say AI is improving customer trust, particularly through faster fraud detection and more personalised services. They also see stronger productivity gains, with 42% of employees saving two or more hours a week, compared to 28% among “Efficiency Seekers”.

The partner of Fintech section is