Visa says early AI users could pull ahead in European banking

Artificial intelligence is already in use across most major functions at European banks, and many senior industry executives expect the technology to alter retail banking competition by 2030, according to Visa Consulting and Analytics. The firm said its survey of 325 senior decision-makers in 17 European markets found that more than 90% of banks use some form of AI, while 61% of respondents expect early adopters to lead their markets.

The study points to a shift from trial projects toward wider implementation. Visa said 86% of respondents believe AI will reshape retail banking by the end of the decade, with the largest gains expected at institutions that apply the technology to high-volume, time-sensitive processes rather than peripheral functions.

Banks have already been committing substantial budgets to AI, according to Visa, as the technology changes operating models and workforce needs. The survey suggests that the next phase will depend less on whether banks adopt AI and more on where they deploy it, how well their data systems connect, and whether AI tools are built into live decision processes.

Efficiency remains the main investment case

Nearly half of the banks surveyed said their AI spending is mainly aimed at improving operational efficiency or employee productivity. Fewer than one in three named customer experience or fraud prevention as their primary reason for investing, according to Visa.

The distinction matters because AI systems produce different effects depending on the workflow. In real-time decisioning, fraud monitoring and personalised services, AI can analyse data quickly enough to affect a customer interaction while it is still taking place. Visa said organisations using AI in these high-volume, real-time settings are 40% more likely to report transformational gains.

The study said the impact is more limited when AI is used further from immediate customer or risk decisions, including in product development or lending. In those areas, Visa said benefits tend to level off sooner.

Visa groups banks by adoption strategy

Visa divided respondents into four broad categories based on their AI priorities. About half were classified as “Efficiency Seekers,” with a focus on cost reduction and operations. Nearly a third were described as “Trust Builders,” which direct AI investment toward customer outcomes. A further 15% were labelled “Competitor Chasers,” investing in response to market pressure, while 7% were “Compliance Keepers,” focused mainly on regulatory requirements.

Visa said “Trust Builders” were more common among digital-first banks. These institutions were also more likely to report that AI was strengthening customer trust, particularly through quicker fraud detection and more tailored services.

The same group reported stronger productivity effects. According to the study, 42% of employees at “Trust Builder” banks save at least two hours a week through AI use, compared with 28% among “Efficiency Seekers.”

Mandy Lamb, head of value-added services at Visa Europe, said banks now need systems that can support broader deployment. “The opportunity now is to build for scale, with modern, flexible systems, connected data, and AI embedded directly into real-time decisions,” Lamb said. She added that banks with those foundations would be better placed to move quickly, adjust to change and provide more secure and relevant customer experiences.

This story draws on original reporting from Finextra Research.