Aussie mutual banks walk AI and personalisation tightrope

They remain at an early stage of adopting AI due to their business models.

Australia’s mutual banks face falling behind from capturing the operational efficiencies of artificial intelligence (AI) whilst retaining its members, said S&P Global Ratings.

“We believe they will be increasingly torn between preserving their unique personal touch and adopting the sophisticated technologies required to compete with larger, more efficient institutions,” the credit rating company said in a report on 25 August 2026.

Mutual banks are at an early age of adopting AI, because their business models are focused more on providing a personal touch to customers, S&P said.

Implementation is expected to remain largely limited to third-party solutions.

AI adoption may also be seen in automating support functions, S&P said.

S&P believes that successful integration of AI into core business operations could significantly cut mutual banks’ cost-to-income ratios.