While the global market for AI in banking, financial services, and insurance (BFSI) is expected to surge from $35 billion in 2023 to an astonishing $368 billion by 2032, only a select group of banks are effectively translating AI investments into revenue.
A recent report by Dyna.Ai, developed in collaboration with GXS Partners and Smartkarma, highlights how financial institutions in Southeast Asia, Latin America, and the Middle East are capitalising on a few AI capabilities to generate significant income.
In Southeast Asia alone, banks are harnessing AI-driven personalization to achieve up to a 6% revenue uplift. The findings are encouraging, especially in mobile-first markets where AI is being swiftly integrated into customer-facing operations.
DBS Bank in Singapore stands out as a prime example, having generated $565 million from 350 AI use cases in 2024 and projecting $745 million by 2025. This success is further magnified by the region's $300 billion MSME financing gap, which presents a lucrative opportunity for AI-enhanced lending solutions.
Despite the promising statistics, many banks remain stuck in the pilot phase of AI implementation. Approximately 77% of financial services executives report positive ROI within the first year, yet substantial enterprise-wide impact continues to elude them.
Only about 10% of institutions utilising agentic AI see significant, measurable returns, indicating that a critical shift towards production-scale deployment is essential.
Tomas Skoumal, chairman and co-founder of Dyna.Ai, emphasises that accountability is the key to unlocking potential revenue: “Most banks believe they are progressing with AI, yet our research reveals a gap far wider than most executives expect.” He calls for institutions to anchor AI initiatives to specific revenue outcomes and foster accountability from deployment through to operational results.
Emerging markets in the Middle East and Latin America are also following suit, adapting AI to enhance cross-border payment services and boost financial inclusion. Banks are now moving towards a Results-as-a-Service model, where providers are compensated based on successful outcomes rather than merely the tools themselves.
As banks in Asia navigate this evolving landscape, the imperative to embrace AI with a focus on accountability and measurable impact will be paramount in achieving sustained success and unlocking new revenue streams.
