{
  "docId": "019dd923-5ca1-7489-b632-eed251795d29",
  "docSlug": "0bf019d2d4ffd9cd",
  "documentTitle": "Banking on AI Banking Top 10 Trends for 2024",
  "authorId": "Accenture",
  "authorName": "Accenture",
  "documentKindSlug": "consulting-deck",
  "documentKindLabel": "Consulting deck",
  "sourceTypeSlug": "strategy_consulting",
  "sourceTypeLabel": "Strategy consulting",
  "presentationDate": null,
  "orientation": "landscape",
  "aspectRatio": 1.778,
  "pageNumber": 27,
  "pageCount": 48,
  "prevPage": 26,
  "nextPage": 28,
  "slideType": "industry_trends",
  "function": "summarize",
  "density": "overcrowded",
  "nDataPoints": 0,
  "notes": "The slide uses a blob-like graphic to highlight a key takeaway about the shift from intuition to data-driven pricing.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "callout_box",
    "quote_block"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-5ca1-7489-b632-eed251795d29/27",
  "deckHref": "/decks/019dd923-5ca1-7489-b632-eed251795d29",
  "deckJsonHref": "/decks/019dd923-5ca1-7489-b632-eed251795d29.json",
  "deckAnchorHref": "/decks/019dd923-5ca1-7489-b632-eed251795d29#slide-27",
  "components": [
    {
      "bbox": {
        "h": 0.3,
        "w": 0.25,
        "x": 0.63,
        "y": 0.045
      },
      "kind": "callout",
      "text": "Dynamic pricing has always been possible, but it has mostly depended on intuition. In the future, banks will price their services with a greater understanding of how each variable affects the outcome for each customer.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "93e40b22-3029-450f-976b-48e577412c1d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "ROE of banks in developed markets (past 40-50 years): 15%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd951-9f60-73de-a941-2874432fbceb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.2,
        "w": 0.25,
        "x": 0.09,
        "y": 0.45
      },
      "kind": "paragraph",
      "text": "They will also be able to execute their business strategies with more precision: set prices that find the ideal balance between profit, growth and customer value, and between short-term and longer-term objectives. By testing different strategies, banks will be able to optimize their deposit betas and maximize lending rates in the retail, small business and commercial segments.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2b841024-b917-4cbf-b632-5b72bba09445",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.25,
        "x": 0.36,
        "y": 0.18
      },
      "kind": "paragraph",
      "text": "Banks will also be able to reward loyalty, not just with uniform schemes that target the entire customer base but with tailored incentives. For example, South Africa’s Discovery Bank tracks customers’ actions that reduce risk and improve their financial health, and then shares the value this creates through personalized interest rates and other rewards. “It’s simple,” the bank states. “We believe that we’ll do well when our clients do well, and society will benefit too.”25",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4b9efb73-890a-4ebd-92e0-a524bd284789",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.2,
        "w": 0.25,
        "x": 0.36,
        "y": 0.33
      },
      "kind": "paragraph",
      "text": "Dynamic pricing has always been possible, but it has mostly depended on intuition. In the future, banks will price their services with a greater understanding of how each variable affects the outcome in relation to each customer. Some may use the ability to maximize short-term profits, while others will test innovations and drive growth; another group will pursue a happy medium between the interests of the bank and those of its portfolio of customers.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d3896fb3-211a-443b-a65d-df90c1049b7d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.25,
        "x": 0.63,
        "y": 0.18
      },
      "kind": "paragraph",
      "text": "Despite its past limitations, banking has always been an industry where competitive advantages have been efficiently hunted down and negated by rivals. This is one reason why, over the past 40-50 years, the ROE of banks in developed markets has rarely exceeded 15%. What may ultimately happen, as all industry players become adept at price optimization, is that the benefits are mostly passed back to the customer. In this case, the race to perfection will initially advantage the early adopters and ultimately the banking customers. However this plays out, pricing is likely to receive a lot more attention as generative AI matures.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e28d5f97-9681-4190-ae91-ffc2f9391bc0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.25,
        "x": 0.09,
        "y": 0.18
      },
      "kind": "paragraph",
      "text": "The new prices can be delivered automatically to all customers, together with tailored incentives for saving more or subscribing to more products. These could be promoted through personalized marketing scripts, also crafted by generative AI. With millions of iterations, and the ability to learn from each, banks should soon be able to zero in on the perfect price.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "eea89236-fbb1-49b8-b969-729aede32248",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "\"It's simple,\" the bank states. \"We believe that we'll do well when our clients do well, and society will benefit too.\" — South Africa's Discovery Bank",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd951-9f60-73de-a941-2762cce81f42",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.2,
        "x": 0.04,
        "y": 0.06
      },
      "kind": "title",
      "text": "Trend 5 | The power of pricing",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "45cb018d-62e3-4514-a79f-a2f50fb8bef6",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [
    {
      "metricRaw": "ROE of banks in developed markets (past 40-50 years)",
      "numberRaw": "15%",
      "numberKind": "percent",
      "actionTitle": null,
      "calloutText": "Dynamic pricing has always been possible, but it has mostly depended on intuition. In the future, banks will price their services with a greater understanding of how each variable affects the outcome for each customer.",
      "numberScale": null,
      "numberValue": 15,
      "metricFamily": "margin_return",
      "numberCurrency": null
    }
  ],
  "tools": [
    {
      "name": "2x2 matrix",
      "slug": "matrix-2x2",
      "agent": null,
      "layer": "slide",
      "matchId": "e5cabcfe-8a38-4107-9d47-a224578a94ba",
      "evidence": "Despite years of talk about “hyper-personalization”, banks’ pricing has always been characterized more by consistency and simplicity than the ability and willingness of individual customers to pay.",
      "confidence": 0.5
    },
    {
      "name": "Action Titles",
      "slug": "action-titles",
      "agent": "Architect",
      "layer": "slide",
      "matchId": "019dd95a-0bbb-77da-b1d0-9aea1ac94bbf",
      "evidence": "Trend 5 callout positions AI dynamic pricing as the recommendation.",
      "confidence": 70
    }
  ],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 44,
      "from": 5,
      "beatId": "019dd95a-0680-7418-8208-6c972da02fde",
      "arcName": "The Mountain",
      "arcSlug": "mountain",
      "beatName": "Rising Action",
      "beatSlug": "mountain-rising-action",
      "evidence": "Ten trends cumulatively build pressure on incumbent banks.",
      "position": 2,
      "confidence": 65,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    },
    {
      "to": 44,
      "from": 5,
      "beatId": "019dd95a-0680-7418-8208-7acbfe02bbc4",
      "arcName": "The Triple Take",
      "arcSlug": "triple-take",
      "beatName": "The Facts (What)",
      "beatSlug": "triple-take-the-facts-what",
      "evidence": "Ten trends each present data and figures (Figs 1, 2, 7, 8).",
      "position": 1,
      "confidence": 55,
      "parentBeatName": "Setup",
      "parentBeatSlug": "setup"
    }
  ],
  "loops": [
    {
      "to": 27,
      "from": 25,
      "name": "Logic Chain",
      "slug": "01-logic-chain",
      "bestFor": "Skeptical audiences, controversial recommendations, rigorous analysis",
      "matchId": "019dd95a-07fd-712f-b772-3dfc877a507e",
      "evidence": "1% revenue ≈ 40bps ROE > 1% cost ≈ 25bps premise → AI pricing conclusion.",
      "position": 5,
      "objective": "Argue dynamic AI pricing is highest-leverage move",
      "structure": "Premise 1 (Accepted truth) -> Premise 2 (Observed fact) -> Therefore... (Inevitable conclusion)",
      "confidence": 65,
      "description": "Build an airtight chain of logic where each premise leads inevitably to the conclusion"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}