Bain: AI agents will make it easier to switch banks, threatening profits built on inertia

AI will change where banks compete and which ones stay on top over the next five years, Bain & Company argues in a new brief from its Future of Banking work, according to a press release.

Bain's main point is that AI agents can make comparing offers and switching providers almost effortless, eroding the customer inertia many banks rely on. Profit pools built on inattention are the most exposed, efficiency gains may end up with customers rather than shareholders, and being hard to displace in a few markets will matter more than being big everywhere. Among the 30 largest banks, those that lead or come a close second in a business line earn a 15% return on equity, against 9% for those with weaker positions.

Bain suggests banks attack where AI enables new products, defend profit pools that stay attractive, and rethink businesses that depend on friction AI could remove. "The AI-enabled customer cuts both ways for banks, particularly as agents remove friction from switching," said Peter Stumbles, global head of Bain's financial services practice.