Over 80 percent of banks target automation cost cuts, Buch says
European Central Bank Supervisory Board Chair Claudia Buch stated that digital innovation is altering banks' competitive advantages. Speaking at a banking conference in Amsterdam on September 22, 2026, Buch noted that new entrants and artificial intelligence are accelerating structural change.
From data bundling to automation
Claudia Buch highlighted that commercial banking relies fundamentally on processing information and making predictions regarding liquidity needs, loan repayments, and collateral values.
While banks historically maintained an edge by offering multiple services under one roof to gather measurable and soft data, new technologies are shifting this dynamic.
More than 80 percent of institutions supervised by the ECB identify process automation as a key mechanism for reducing operational costs.
Banks are increasingly deploying artificial intelligence to enhance risk management and upgrade client services, while facing new entrants providing unbundled services across the value chain.
The customer retention challenge
Supervisors observe that digital transformation creates operational risks alongside efficiency gains.
Banks under direct ECB oversight identify the potential loss of direct customer relationships as a primary vulnerability as fintech competitors dismantle traditional universal banking models.
Buch emphasized that the rapid adoption of digital tools accelerates structural change across the financial system, testing whether incumbent institutions can protect their informational advantages.
Automate or lose ground
Process automation is no longer an optional efficiency lever for European banks facing agile competitors.
Yet deploying algorithms to cut operating costs does not solve the deeper threat of losing direct client access.
Incumbents must overhaul their business models instead of merely digitizing legacy workflows.