AI could cut banking industry's cost base by 20% - McKinsey

McKinsey’s projection that AI could reduce the banking industry’s cost base by 20% signals a significant shift in operational efficiency that middle-market credit professionals must monitor closely. Such cost savings could reshape credit risk assessments, pricing strategies, and competitive dynamics as banks leverage AI to streamline processes and enhance decision-making. Understanding the potential scale of AI-driven cost reduction is crucial for anticipating changes in lending capacity and credit terms within the middle market.