nCino Says AI Capabilities Will Drive Cloud Banking Solution’s Continued Growth

Cloud banking solution provider nCino plans to add sophisticated artificial intelligence (AI) capabilities and fully agentic workflows to its Banking Advisor product during the next quarter.

Sean Desmond, CEO at nCino, said Tuesday (Aug. 26) during the company’s quarterly earnings call that nCino expects AI to be as transformative for financial services as the shift to cloud services was a decade ago, and that financial institutions are looking to nCino to help them navigate their “AI journey.”

nCino unveiled Banking Advisor in June 2024, at which time it served as a “banker-focused, conversational copilot tool” providing portfolio management, streamlining tasks and helping banks track and comply with regulatory requirements.

During Tuesday’s call, Desmond said that as an AI-powered interface designed for financial institutions, Banking Advisor is the “first pillar” of nCino’s AI strategy and has been purchased by more than 80 of the company’s customers.

“Financial institutions don’t just need AI tools; they want a partner they trust who deeply understands banking, has a proven ability to drive industrywide change, and possesses the data foundation necessary to build truly differentiated AI capabilities,” Desmond said during the call. “nCino has been that partner.”

As it looks to grow the adoption of AI, nCino aims to leverage its strengths in providing mission-critical systems, understanding regulatory complexities, appreciating the need to protect customers’ information, and understanding the financial services vertical and the context in which it will use AI, Desmond said.

“AI is coming up in virtually every customer conversation, and we are already seeing our AI-first approach contributing as a differentiator that helps move deals over the finish line, including being a catalyst for customers to transition to our new pricing framework,” Desmond said.

Desmond shared these plans during an earnings call in which nCino reported that its total revenue increased 12% year over year during the quarter ended July 31, while its subscription revenues increased 15%.

In a presentation released Tuesday, the company said it exceeded its guidance ranges for those metrics as well as non-GAAP operating income and non-GAAP net income attributable to nCino per diluted share.

During the call, Desmond attributed the gains to the nCino team’s execution and a “more supportive” macro environment.

“The headwinds that we’ve been navigating have generally subsided,” Desmond said. “From a deal activity standpoint and from a sales opportunity standpoint, we haven’t seen this level of activity in quite some time.”