The ECB boosts AI: Lagarde anticipates positive effects on growth, productivity, and inflation The traditional image of banks as rigid and slow institutions is fading. Digitalization and the adoption of artificial intelligence (AI) are transforming the financial sector, driving a revolution in efficiency and cost management. Currently, major listed Spanish banks, such as Unicaja, Bankinter, Sabadell, Santander, BBVA, and Caixabank, are operating with the lowest efficiency ratios in their history. AI has become a key driver of this change, allowing institutions to reduce structures, close branches, and optimize staff, in a trend that has been ongoing for over a decade. The efficiency ratio, which measures the cost to generate 100 euros in revenue, has evolved significantly: previously, achieving below 50% was an accomplishment, but now the standard is below 40%, and in some cases around 30%. In 2025, only Sabadell experienced a setback due to the sale of TSB to Santander. In previous years, Caixabank and Unicaja also reflected the impact of recent mergers in their ratios. BBVA emphasizes that efficiency depends not only on cuts but also on a customer-focused technological transformation. Onur Genç, CEO, highlighted that the bank is redesigning its processes with AI and innovation, allowing its 127,000 employees to access tools like Gemini and ChatGPT. Although he acknowledges they are in an early phase, they are already seeing tangible improvements: BBVA's efficiency ratio improved to 38.8%, aiming to reach 35% by 2028. In Spain, the figure is already 34%, according to CFO Luisa Gómez Bravo. Santander attributes its improved efficiency ratio to technology-based operational transformation and automation. Héctor Grisi, CEO, explained that the "One Transformation" strategy has generated 265 efficiency points, with room for further progress thanks to models like Gravity and One App, already present in most key markets. The group closed 2025 with a ratio of 39%, after increasing active customers by 2% and reducing service costs by 4%. Ana Botín, chairwoman, highlighted the technological integration following the acquisition of Webster Bank in the U.S., where Santander adopted the acquired entity's systems to maximize efficiency from day one, expecting synergies of $280 million. Bankinter leads the sector with an efficiency ratio of 36% at the end of 2025, thanks to its 'AI first' approach and a lean structure in offices and employees. Gloria Ortiz, CEO, emphasized that AI is transforming operational and business models, allowing for cost growth containment and productivity improvement. Ortiz estimates that AI will enable Bankinter to increase productivity by 5% and software development capacity by 10%, equivalent to one million hours in the coming years. In summary, artificial intelligence is consolidating as a decisive factor in the transformation of the Spanish banking sector, improving efficiency, productivity, and profitability, as highlighted by the sector's top executives and ECB President Christine Lagarde. (Source: businessinsider.es)