Over the past several years, AI has quietly been weaving its way into the fabric of banking — but despite this, many customers aren’t fully aware of how artificial intelligence is actually benefiting them. I recently dived into an insightful conversation with Melanie Evans, Chair of ASICH, who shared some refreshing perspectives on the delicate balance banks need to hit as they embrace AI technology. The big takeaway? Responsible, ethical AI use is critical not only for customer trust but for the future of Australia’s banking landscape.
AI already shaping customer experiences behind the scenes
Contrary to popular belief, banks haven’t just jumped on the AI bandwagon overnight — in Australia, AI has been embedded in banking operations for quite some time. Melanie highlighted ING’s proactive approach: their contact centers continuously collect voice interactions which are then analyzed by AI models. By doing this, they identify common issues and any systemic risks affecting customers. This kind of real-time feedback loop allows the bank to address problems before they escalate and ensure their service meets evolving needs.
What struck me here is how AI isn’t being treated just as a cost-cutting tool, but as a means to genuinely improve customer experiences. AI is helping banks to spot patterns that might otherwise go unnoticed, particularly those impacting vulnerable customers who might be stuck with unsuitable or costly products. Plus, it empowers banks to notify those customers proactively, offering them more appropriate alternatives. In a way, AI acts like a vigilant guardian, helping banks “do the right thing” by their customers.
Building trust: the ethical and security challenge
Of course, with great power comes great responsibility. Banks sit on heaps of highly sensitive personal and financial data — everything from transactional history to wealth details. Melanie was clear that how banks govern AI, maintain its security, and approach its ethical use will heavily influence how Australians feel about AI across all industries, not just banking.
This point resonated strongly with me. Customers’ trust isn’t a given. It’s built through transparency, accountability, and above all, making sure technology benefits them without causing harm or exclusion. Past technological advances have sometimes left vulnerable customers sidelined or exposed to scams, so banks now face a call to action. The focus is moving towards using AI to identify systemic risks early and prevent hardships such as excessive fees or inappropriate lending situations.
Melanie shared that banks like ING treat this as a core challenge—not a hindrance—to innovation. Their AI systems are designed to detect patterns that signal need for intervention, whether by changing customer communications or adjusting products. Trust, it seems, hinges on banks proving they’re using AI to safeguard and empower customers first, not just to boost profits.
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Jobs, competition, and the future of banking
One of the questions that often comes up with AI is job security. I was curious about whether AI has led to layoffs in Australian banking, especially at ING. Melanie’s answer was reassuring: ING hasn’t cut jobs due to AI; rather, they’ve used the efficiency gains to expand and explore new customer offerings. This growth mindset reflects how AI can create new roles and opportunities when deployed thoughtfully, rather than simply replacing workers.
The competitive landscape in banking is also shifting rapidly. Even the big four banks in Australia have been ramping up their digital and AI capabilities, putting pressure on challengers like ING. For customers, this competition means more innovation and better services. But it also raises important questions about regulation. Melanie hopes the upcoming Council of Financial Regulators report will reinforce support for fair competition and proportionate regulation — ensuring banks of all sizes can compete without unfair barriers.
She also touched on the delicate topic of branch closures in regional areas. With a moratorium currently in place until 2027, banks and government have a bit of breathing room to develop alternative access models like banking through Australia Post outlets and advanced ATM networks. The goal is to balance innovation with accessibility, making sure regional Australians aren’t left behind as banking evolves.
Key takeaways for anyone curious about AI in banking
- AI is already improving the lives of banking customers: from analyzing calls to detecting food systemic risks, banks are using AI to catch issues early and deliver tailored solutions.
- Ethical use and security matter deeply: with sensitive data in play, how banks govern AI will shape public trust in AI beyond just finance.
- AI doesn’t have to mean job cuts: banks like ING show that AI can help grow services and improve customer experience while redeploying human talent toward higher value tasks.
- Competition fuels innovation: supporting diverse players through proportionate regulation can drive better tech-driven banking options.
- Balanced approach needed for regional access: innovative alternatives to physical branches must keep rural customers connected and supported.
Final thoughts
Diving into banks’ AI journeys gives me a fresh appreciation for how complex—and promising—this transformation really is. It’s not just about robots replacing humans or flashy tech; it’s about a thoughtful integration of AI that respects customers, safeguards data, and boosts financial wellbeing. Banks like ING are leading by example, using AI to listen better, anticipate needs, and create value that goes beyond dollars and cents.
As AI continues to evolve, the challenge will be maintaining this focus on ethics and inclusion while pushing the boundaries of what technology can do. If we get it right, AI could become one of the most powerful tools for building trust and delivering truly personalized banking experiences in Australia and beyond.
