KEY FACT
Barclays reports significantly higher customer response rates
TECH & AI
C H A L L E N G E S F U T U R E H O R I
US $ 9.85bn
Estimated predictive analytics in banking market in 2029
Source: The Business Research Company
KEY FACT
Barclays reports significantly higher customer response rates
Success has brought scrutiny. Europe’ s GDPR regulations grant consumers the right to understand automated decisions affecting them, while Britain’ s Financial Conduct Authority has issued guidance on algorithmic fairness.
The concerns aren’ t abstract – predictive models can inadvertently penalise certain groups, leading to calls for“ explainable AI” that can justify its decisions.
Banks must now prove their algorithms don’ t discriminate, a complex challenge given the black-box nature of many machine learning systems.
Yet the technology continues to advance rapidly. Real-time processing represents the next frontier, with large language models beginning to analyse news articles and social media sentiment for market predictions.
Quantum computing, though still experimental, promises to solve optimisation problems beyond current capabilities. Open banking is creating new data streams that should improve model accuracy, whilst central bank digital currencies might provide unprecedented economic visibility.
96 July 2025