70% of UK Finance Professionals Believe AI Will Shape the Future of Cross-Border Banking
Artificial Intelligence (AI) is rapidly becoming a cornerstone for UK banks and fintech companies in their quest to engage customers in international markets. Research conducted by Deepl, a global AI product and research organization, shows that AI is increasingly utilized in customer communication strategies. A survey involving 1,500 financial services professionals across Europe, including 500 from the UK, reveals that over a third (37%) of customer interactions are already powered by AI technologies. As nearly half of all customer interactions now cross international borders, AI is essential for delivering efficient and seamless customer experiences.
AI’s role in enhancing customer communications within the financial services sector cannot be overstated. Currently, an average of 37% of customer communications in UK financial services relies on AI, a number projected to rise to 46% in the next year and reach 50% within three years. This trend indicates a significant shift towards automation in customer service.
The most prevalent applications of AI in UK financial services customer communications include:
- AI-powered translation: utilized by 52% of respondents.
- Virtual assistants or chatbots: employed for banking inquiries (51%).
- AI for fraud detection: used in alerts and transaction monitoring (50%).
- Automated responses: for credit card or account support (48%).
- Wealth management: and investment advice using AI (48%).
The increasing adoption of AI-powered translation tools reflects the pressures financial firms encounter while serving a diverse international customer base. With language barriers posing significant challenges, AI helps organizations offer more inclusive services while addressing the difficulty of hiring multilingual personnel.
The Transformation of Cross-Border Communications
More than a third (39%) of client engagements at UK financial firms are now international. Yet, many companies struggle to meet the rising communication demands associated with global operations. Approximately 85% of financial professionals report that language barriers have hindered client activity among non-English speakers, while 84% believe it is challenging to recruit individuals capable of effective communication in multiple languages.
In this landscape, AI emerges as a pivotal tool for improving customer communication. About 70% of UK finance professionals affirm that AI enhances the speed and availability of customer support, and the same percentage believe it ensures consistency in communication across different languages. More than 70% of respondents also noted higher levels of customer satisfaction when services are available in their preferred languages.
Challenges and Risks of Shadow AI
Despite the advantages associated with AI adoption, increased risks accompany its rapid integration into client-facing applications. The research uncovered rising concerns related to “shadow work,” where employees resort to unapproved AI tools to expedite tasks without sufficient oversight. Alarmingly, nearly two-thirds (65%) of finance professionals admit that employees are using unauthorized AI resources to engage with customers.
This practice introduces significant cybersecurity and compliance risks, as sensitive information may be exposed without proper safeguards. Shadow AI typically arises when teams lack access to specialized tools, compelling them to utilize general-purpose AI for tasks that require secure, proprietary solutions.
“In financial services, where every interaction is highly regulated and reputational risk is acute, staff will inevitably seek workarounds if the tools provided do not meet their needs,” said David Parry-Jones, Chief Revenue Officer at Deepl. “The true risk is not that employees engage with AI, but that companies fail to provide secure solutions that are tailored to their requirements.”