Why the finance industry is looking to agentic AI
Why the finance industry is looking to agentic AI
Why the finance industry is looking – Imagine an AI assistant that handles your shopping tasks, from browsing options to completing purchases. This is the promise of agentic AI, a type of artificial intelligence that goes beyond answering questions to executing tasks independently. At the Money 20/20 Europe event in Amsterdam, a groundbreaking demonstration took place: Mastercard, Dutch bank ING, and payment services firm Worldline unveiled Europe’s first live, end-to-end agentic payment. The process began when a user instructed an AI to search for concert tickets in a specific location on a set date, within a given budget. The AI identified suitable options, processed the selection, and executed the payment with human confirmation. This moment highlighted the growing integration of agentic AI into financial systems, as industry leaders explore its potential to streamline operations and enhance user experiences.
Agentic AI: A Shift in Financial Innovation
The Money 20/20 Europe conference, hailed as the largest annual fintech gathering, became a focal point for discussions on agentic AI. For years, fintech startups and traditional banks operated as competitors, but the collaboration between Mastercard, ING, and Worldline signals a broader trend of partnership. Scarlett Sieber, the conference’s chief strategy and growth officer, noted that AI in finance has evolved from a trendy concept to a tangible reality. “AI used to be a buzzword,” she said, “but now it’s being adopted across all sectors, not just by startups.” This shift underscores the industry’s recognition of AI’s transformative role in automating processes and reducing reliance on manual labor.
Meanwhile, Israeli fintech company eToro, renowned for its social trading app, has been actively upgrading its AI capabilities. CEO Yoni Assia shared insights with CNN, explaining how the platform’s AI assistant has transitioned from offering portfolio recommendations to making decisions on behalf of users under predefined constraints. One notable application is POTU$, an app that monitors Donald Trump’s social media and news coverage. When the US president posts content that could influence markets, the AI swiftly initiates trades in user accounts. Assia emphasized the rapid adoption of AI within eToro, stating that its codebase has grown tenfold in six months, with 95% of new developments now driven by AI. “AI is useless without humans steering it,” he added, highlighting the necessity of human oversight in ensuring accuracy and ethical alignment.
Automation and Efficiency: The Klarna Case
Swedish fintech company Klarna, which popularized the “buy now, pay later” model, has also embraced agentic AI. Last month, Klarna launched a shopping search app within ChatGPT, demonstrating its commitment to integrating AI into customer engagement. In 2024, the company introduced an AI assistant powered by OpenAI, claiming it could replace the work of 700 full-time human agents. “New technology allows us to do more with less,” said CEO Sebastian Siemiatkowski during the event, noting that the company’s workforce had dwindled from 6,000 to fewer than 3,000 in recent years, while revenue per employee increased. However, Siemiatkowski acknowledged the trade-offs, mentioning that cost-cutting had initially led to “lower quality” in service. He revealed that Klarna had begun rehiring human agents to improve support quality, recognizing the value of human judgment in complex scenarios.
Despite its benefits, agentic AI’s rise has sparked concerns about job displacement. Siemiatkowski conceded that AI could lead to workforce reductions across industries. “Customer-facing jobs, from sales to legal roles, will fare very well,” he said, while noting that “specific job areas” might face short-term challenges. The exact proportion of roles replaced by AI remains unclear, but the trend is undeniable. As automation accelerates, the finance sector is at the forefront of this transformation, raising questions about the balance between efficiency and human involvement.
From Fintech to Traditional Banks: A Shared Vision
Traditional banks, too, are adapting to the agentic AI wave. ABN AMRO, one of the Netherlands’ largest financial institutions, exemplifies this shift. Its CEO, Marguerite Bérard, told CNN that AI is integral to the bank’s broader digital transformation. The institution reduced its physical branches from 500 in 2010 to just 26 today, reflecting a strategic move toward digital-first services. ABN AMRO also plans to cut 5,200 jobs by 2028, a figure that underscores the scale of AI’s impact on employment. “Eighty-five percent of our colleagues, including myself, use AI in daily work,” Bérard said. She highlighted how customers engage in millions of conversations with the bank’s AI bot, Ana, while another tool, Lenny, automates credit requests. These advancements illustrate how even legacy institutions are leveraging AI to remain competitive.
The adoption of agentic AI is expected to surge in the coming years. According to a 2026 report by the University of Cambridge, which surveyed over 600 firms and regulators globally, the percentage of financial institutions deploying AI agents is projected to rise from 24% to 81% by 2030. This growth, however, comes with caution. The report warned that the pace of technological development currently outstrips the supervisory frameworks and technical expertise needed to regulate it effectively. “Rapid innovation is creating challenges for oversight,” the study noted, emphasizing the need for robust governance as AI becomes more autonomous.
Challenges and Governance in Agentic AI
As agentic AI expands, concerns about its reliability and impact on decision-making have grown. Research firm Gartner predicted that over 40% of agentic AI projects would be canceled by the end of 2027, citing factors such as rising costs, unclear business value, and insufficient risk management. A recent report from Accenture and Wharton business school echoed these sentiments, stressing that leaders must decide which tasks to automate and which require human input. The study also emphasized the importance of embedding governance, accountability, and trust into AI systems to mitigate potential downsides.
Scarlett Sieber, reflecting on the conference, highlighted the critical role of human oversight in AI-driven processes. “Agentic AI can only be as good as the systems it operates within,” she said. This perspective aligns with the views of Marguerite Bérard, who stressed that AI’s effectiveness depends on the quality of the processes it supports. “If you deploy AI on a flawed system, you still have a bad outcome,” she explained. The combination of AI’s autonomy and human expertise is seen as the key to maximizing its potential while minimizing risks.
These developments signal a pivotal moment in the finance industry’s evolution. Agentic AI is no longer a distant possibility but a tangible tool reshaping how services are delivered and managed. From real-time trading to streamlined customer support, its applications are vast and varied. Yet, as the technology matures, challenges related to oversight, quality, and job displacement will require careful attention. The collaboration between fintech innovators and traditional banks suggests that the future of finance will be defined by a delicate balance between human judgment and machine efficiency. As the University of Cambridge report noted, the industry must ensure that AI’s rapid growth does not outpace the frameworks needed to guide its use responsibly.
For consumers, the benefits of agentic AI are already evident. Automated systems can process transactions faster, reduce errors, and provide personalized services with minimal intervention. However, the reliance on AI also means that errors or biases in its programming can have significant consequences. This highlights the importance of continuous evaluation and refinement of AI models. As more firms adopt agentic AI, the industry will need to address not only its technical limitations but also its social and economic impacts. The question remains: how will these systems shape the future of finance, and what role will humans play in steering their direction?
“Agentic AI is the future of finance, but it’s not a replacement for human oversight—it’s an enhancement.” — Scarlett Sieber, Chief Strategy and Growth Officer, Money 20/20 Europe
With agentic AI’s trajectory set, the finance industry is poised for a major transformation. As the technology continues to evolve, its integration into everyday operations will redefine efficiency, customer engagement, and the workforce. Whether it’s automating payments, facilitating trades, or managing credit applications, agentic AI is proving its value. Yet, the road ahead demands vigilance, ensuring that automation complements rather than undermines the integrity of financial systems. The journey from concept to implementation is just beginning, and the outcome will depend on how well the industry navigates the intersection of innovation and responsibility.
