Global Banking Industry Profits Could Rise to $2 Trillion via AI Technology

JAKARTA - Citi Indonesia revealed that it is strengthening its digital economy aspect through the use of artificial intelligence (AI) technology.

Because this is estimated to have the potential to increase the profits of the global banking industry by up to 2 trillion US dollars in 2028.

Citi Indonesia CEO Batara Sianturi said that artificial intelligence technology will later help change the future of the global financial industry, including in Indonesia.

In addition, Batara said that the financial industry is an industry that is rich in data and players in the industry who quickly adopt AI, so they will be at the forefront of the current era of change.

"Artificial intelligence (AI) will change the future of the financial industry. AI has the potential to increase the profits of the global banking industry by up to 2 trillion US dollars in 2028, an increase of 9 percent in the next five years," he said at the Citi Indonesia Digital Leaders Summit 2024, Wednesday, August 7.

Batara said that his party continues to make efforts to modernize systems and capabilities, as well as increase focus on innovation and product digitalization, to position itself as an important pillar of domestic market stability.

According to Batara, the new structure of Citi Indonesia, which now operates entirely in the Institutional Banking business, also supports the vision to become a leading banking partner for clients with cross-border needs.

In addition, he ensured that Citi Indonesia has made significant progress through interconnected businesses in Indonesia, including Citi Commercial Bank in our Banking business, and Treasury & Trade Solutions, which is part of the Services business.

"Citi Commercial Bank is an important part of Citi's strategy as a key growth driver, while Treasury & Trade Solutions is critical to thousands of global companies, with its extensive global network at the core of Citi's strategy," he said.

Batara conveyed by holding the "Citi Indonesia Digital Leader Summit 2024", to bring together digital economy business actors and industry players to discuss solutions and initiatives that can accelerate the growth rate of the digital economy in the country.

The forum discussed business growth opportunities in the technology and renewable energy-based sectors, the implications of artificial intelligence for the financial industry, and the funding landscape for start-up companies in Indonesia from the perspective of investors and business actors.

In addition, Batara said that Citi also shared its solutions and experiences in helping to find operational models that play a role in accelerating the growth of business activities.

Furthermore, Head of Citi Commercial Bank (CCB) Citi Indonesia Edwin Pribadi said that through the solutions offered by his party, medium-scale companies can access the same global banking services as large corporate clients because through Citi's extensive network and presence in more than 90 markets worldwide.

"With Citi's extensive global network, tailored solutions, and deep industry expertise, we can support medium-scale companies in various sectors at various stages of their growth," he said.

Meanwhile, Country Head of Treasury and Trade Solutions (TTS) Citi Indonesia Yoanna Darwin said that she has facilitated more than 5 trillion US dollars in payment transactions every day in 180 countries and more than 135 currencies.

Yoanna said that helping digital commerce activities is a priority for Treasury and Trade Solutions, especially because trade activities are now increasingly shifting online and business models are also shifting to a digital solution scale.

"In areas including payments and liquidity, we continue to invest in delivering innovative, digital and fully integrated solutions to deliver a memorable client experience and support our clients' growth strategies," he said.