Visa research finds early AI adopters lead European banking

Banks that embed artificial intelligence into their core operations today are likely to emerge as the dominant players in European retail banking by the end of the decade, according to new research from Visa Consulting & Analytics (VCA).

Visa  finds early AI adopters lead European banking

The study, based on responses from 325 senior banking executives across 17 European markets, suggests the industry is moving rapidly beyond AI experimentation towards enterprise-wide deployment, with competitive advantage increasingly determined by where and how AI is applied rather than simply whether it is adopted.

AI Adoption Is Widespread, but Outcomes Differ

According to the research, more than 90% of European banks already use artificial intelligence across at least some of their core business functions. Looking ahead, 86% of banking leaders believe AI will fundamentally reshape retail banking by 2030, while 61% expect institutions that adopt AI early and effectively to outperform—or even dominate—their competitors.

However, the report highlights a widening divide between banks using AI primarily to improve operational efficiency and those deploying it to transform customer-facing services.

Almost 48% of institutions remain focused on reducing costs and improving employee productivity, whereas only 30% identify customer experience and fraud prevention as their principal AI priorities.

Visa argues that this distinction is becoming increasingly important as AI matures from a back-office productivity tool into a strategic capability.

Real-Time Decisioning Delivers Greater Value

The research suggests that the greatest returns are achieved when AI is embedded directly into high-volume, real-time decision-making processes.

Banks using AI for applications such as fraud detection, real-time payment decisioning and personalised customer interactions are reported to be 40% more likely to achieve transformational business outcomes than those deploying AI in more isolated areas such as product development or lending.

Visa categorises banks into four distinct AI maturity groups. Efficiency Seekers, representing 48% of respondents, prioritise operational savings. Trust Builders account for 30%, focusing investment on improving customer confidence through faster fraud detection and more personalised services. Competitor Chasers comprise 15%, adopting AI largely in response to market pressure, while Compliance Keepers make up the remaining 7%, concentrating primarily on regulatory obligations.

Among these groups, Trust Builders appear to be generating the strongest results. According to the study, 42% of employees within these organisations save at least two hours each week through AI-enabled processes, compared with 28% among Efficiency Seekers.

Execution Will Determine Competitive Advantage

Visa concludes that the next phase of banking transformation will depend less on access to AI technology than on an institution’s ability to integrate it across the organisation.

Rather than relying on isolated pilot projects, leading banks are embedding AI into live operational workflows, connecting data across functions and measuring performance against clear business outcomes.

Commenting on the findings, Mandy Lamb, Head of Value-Added Services at Visa Europe, said banks now need to build modern, flexible technology foundations capable of supporting AI at scale. Claudio Di Nella, Head of Visa Consulting & Analytics for Europe, added that the institutions pulling ahead are those making AI an integral part of day-to-day decision-making rather than treating it as an experimental capability.

As competition intensifies across European financial services, the research suggests the defining factor will not simply be who adopts artificial intelligence first, but who succeeds in translating AI investment into better customer experiences, stronger fraud prevention and faster, more intelligent decision-making.