84% of Bank Customers Would Switch for AI-Powered Insights
Consumers are looking for a lot more personalisation from their banks and now rank financial wellness as their top life concern, surpassing even health and family relationships, according to research from Personetics.
The financial engagement platform’s latest report, Understanding Consumer Demand in the AI-Banking Era, found that 84% of banking customers would likely switch to a bank that provided timely, relevant advice to improve their financial health, including insights and product recommendations through AI-driven features.
The study, based on a survey of 2,000 banking customers around the world, shows that banks could be using AI banking tools to drive loyalty, with 74% of people likely to stay with a bank that helps them achieve their financial goals through insights alongside autonomous spending and saving actions.
Customers showed an overwhelming desire for their bank to better understand their financial situations based on their daily spending and savings habits, with 70% either very or extremely interested in their providers using technology to gain more in-depth knowledge about their needs.
Among the AI banking tools customers are most strongly in favour of are double-billing alerts (79%), data on their spending (74%), and overdraft warnings or savings nudges (73%).
A similar number (76%) also said that they would trust these insights and recommendations if provided via their banking apps, with 35% saying they are completely trusting of their banking app’s recommendations, showing that providers could be missing out by not offering more tailored features.
According to Personetics, this is especially significant now that most banking services are digital, and that switching providers has become easier, with the rise of open banking further simplifying the process.
Delivering contextual insights could be key to whether banks retain or lose their digital customers, particularly within certain age groups.
Gen Z customers between the ages of 17-27, for example, showed significantly higher interest in these services compared to other age groups, with 86% of Gen Z respondents looking for more from their banks, compared to a 70% average across all age groups.
Interestingly, the second-highest level of interest comes from those over 60, with 63% reporting that they would likely switch banks to receive timely financial health tips.
“Today’s consumers are digitally savvy and expect advanced, personalized banking experiences,” said Udi Ziv, CEO of Personetics.
“Banks must meet this demand by providing comprehensive, needs-based services that leverage AI-driven insights and advice to assist their customers in making smarter financial decisions.
“Banks are discovering that these services enhance customer loyalty and, consequently, drive product sales, demonstrating that financial wellness benefits everyone involved. These services are not merely optional for banks; they are essential.”
writing by Tom Quinn on
