Relationships Versus AI: Defining the Future of Banking

Artificial intelligence is like a science fiction character in a movie who comes to earth only to wreak havoc and create massive upheaval. Usually, the movie plot features some heroic humans who make it all right again. That may be what happens to the plot now unfolding when it comes to AI in banking.

Much has already been written about the impact of AI on the banking sector. AI will accelerate change, automate processes and enhance performance, say proponents of AI. At the same time, while banking is already a technology business, it remains very much a relationship business, as well. This is where both the conundrum and opportunities lie.

As a leading firm in executive search and talent strategy at the highest levels, we see daily how critical talent has become as a key factor in bank performance, succession and survival. Based on our observations, it is relationships that will sustain community banks going forward. All banks say they are relationship-driven, but the small business customer, first time home buyer and longstanding large individual depositor still need to know who to call when the need arises. Relationships and human connections matter.

Artificial intelligence can answer customer service calls and auto-dial direct marketing outreaches, but as most of us know, these automated systems usually do not solve our problems — and if they do, they don’t do so quickly. Thus, the bank customer’s dependence on their banker, advisor or relationship manager becomes even more essential.

All of our client institutions remain hungry for strong business developers and relationship managers to enhance growth. They need branch managers and business bankers who can bring in new deposits, along with commercial and industrial lenders who can do the same for commercial customers. Sadly, often the skills that most define successful relationship managers and business developers are increasingly lacking in talent pools.

Young professionals today are more technologically savvy than ever. We continue to encourage these up-and-comers and high potentials to focus equally, if not more so, on their soft skills. The ability to build relationships and solve problems for customers will become even more of a differentiator in the age of AI. Many organizations are beginning to invest significantly in programs to enhance those so-called soft skills, which oftentimes are actually harder to master.

Consider business development skills as an example. Enhancing bankers’ comfort to take on leadership roles in their community or joining non-profit boards helps to develop confidence. Creating in-house opportunities for presentations and speaking roles builds important communication skills. The more energy that a bank can devote to these attributes, which complement AI’s value-add, the better positioned the bank or banker will be to grow.

Not too long ago, companies were doling out bonuses to encourage AI use, according to The Wall Street Journal. Now, at least one major firm is rewarding employees who demonstrate the very human skills needed to ensure all that AI use makes a difference. EY’s U.S. division says it will invest $100 million in employee rewards to recognize people who show skills like adaptability, innovation and judgment, as well as experimentation with AI.

Furthermore, The Wall Street Journal also noted that KPMG revamped its audit internship training this summer to focus more on teaching critical thinking and judgment. And earlier this year, PwC U.S. rolled out a curriculum meant to emphasize both AI skills and human traits like empathy and creativity. EY says its aim is to reward the skills and behaviors that matter most to the future of the firm and its clients. The move is part of a bigger initiative to change training and development at all levels, from interns to senior leaders.

These examples from top tier consulting and advisory firms — all of whom also serve banking clients — highlight the criticality of communication, relationship and client-facing skills going forward. In the future, across the economy, AI may make businesses more efficient, but it still cannot solve problems requiring human critical thinking or oversee development of customized solutions.