Artificial intelligence (AI) is increasingly at the heart of international banking operations, according to new research from DeepL. The survey of 1,500 finance professionals across Europe, including 500 from the UK, suggests that 70% of finance professionals believe AI will drive the future of cross-border banking.
The findings point to a shift in how banks and fintechs manage customer communications, compliance, and operations across borders. As firms expand their international footprint, AI tools especially in translation and customer service, emerging as central to competitive advantage.
DeepL’s study reveals that 37% of customer interactions in financial institutions already incorporate AI tools, with projections that this could rise to 46% within 12 months and to 50% within three years.
The most common uses for AI in customer communications include:
AI powered translation (used by 50% of respondents)
Virtual assistants or chatbots for banking queries with customers (47%)
AI for fraud alerts and transaction monitoring (47%)
Automated responses for credit card or account support (46%)
Loan application or mortgage onboarding support (45%)
The emphasis on translation underscores the increasing interconnectedness of global banking operations. Multilingual customer service is a competitive requirement for institutions operating across regions.
More than a third (39%) of all customer-facing work in UK financial services firms is now cross-border in nature. Yet, language remains a central friction point: 85% of respondents said language gaps delay activity for customers who are non-English speakers, and 84% cited difficulty in recruiting multilingual staff.
In that context, AI-powered translation is not just convenience, it is a necessity. According to the survey, 70% of finance professionals believe AI helps speed and maintain consistency of service across languages, and a similar proportion reports higher customer satisfaction when support is offered in customers’ preferred language.
By enabling real-time, high-quality multilingual communication, AI allows institutions to scale cross-border operations without proportionally expanding multilingual staff.
However, the rapid adoption of AI is not without danger. The research raises alarms about the phenomenon of “shadow AI” employees using unapproved or unmanaged AI tools outside official systems. 65% of the professionals surveyed acknowledged that staff are already doing this.
Uncontrolled AI tools can expose firms to data leaks, compliance violations, and reputational harm especially in sectors like finance that are heavily regulated. DeepL’s Chief Revenue Officer, David Parry-Jones, warned that the greatest risk lies not in employee experimentation, but in failure to supply secure, fit-for-purpose AI tools to front-line teams.
To mitigate this, financial institutions are being urged to foster collaboration between IT, compliance, and customer-facing teams, to ensure that AI deployment is both effective and secure.
The DeepL survey complements broader academic and industry discourse on AI’s role in finance. Studies emphasise that generative AI and language-centric models can transform not just communication but core banking functions such as risk assessment, credit underwriting, and automated advice.
Still, those benefits come with risks: opacity, bias, systemic vulnerabilities, and compliance challenges remain prominent concerns.
From a regulatory standpoint, the rapid integration of AI in cross-border finance raises questions about data sovereignty, auditability, accountability, and cross-jurisdictional oversight. Financial regulators globally are already grappling with how to strike the balance between enabling innovation and safeguarding stability.
For banks and fintechs, the message is increasingly clear: the future of cross-border banking will be AI-powered, but success will depend on responsible, secure, and transparent deployment.
As global finance becomes more integrated, the ability to communicate, comply, and serve customers across linguistic and regulatory boundaries will define winners and laggards. AI, particularly in translation and conversational services, is fast becoming the infrastructure of cross-border banking.
However, the risks of unmanaged adoption; including shadow AI, data leaks, and regulatory missteps — must be addressed proactively. The institutions that succeed will be those that pair innovation with strong governance, enabling seamless global service without compromising trust.
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