As more AI agents take on the mantle of personal shopper, there is growing evidence they may soon assume another role: financial advisor.
Data from Plaid found that over half of Americans used AI to manage their finances in the past year, and a similar percentage believe managing money without AI’s assistance will soon feel obsolete.
Even more intriguing, the study found that AI is forming relationships with younger consumers. Roughly half of Gen Z and millennial respondents said that they feel more comfortable discussing their finances with AI than with a human.
What’s more, a higher percentage of younger adults said they would trust an AI agent to autonomously execute trades on their behalf, compared to 44% of consumers overall.
Despite this growing confidence, consumers emphasized the need for guardrails. Roughly three-quarters of respondents said it is important to know when AI is being used in financial decisions, and most expect organizations to reimburse customers in the event of an AI-driven error.
Guidance Amid Confusion
While this data underscores the importance of implementing AI thoughtfully, it also highlights several broader trends in financial services. Notably, customers are seeking both customization and—especially among younger consumers—personalized guidance.
It may seem counterintuitive that, amid an abundance of information sources—AI models, traditional search engines, and social media—customers are still searching for direction. Yet this overload of information often creates more confusion than clarity.
These lines are becoming more blurred as social media platforms expand into e-commerce, payments, and even banking. For example, TikTok recently applied for licenses in Brazil that would allow it to offer prepaid accounts, enabling users to hold balances, send and receive payments within the app, and potentially even access lending services.
The Digital Banking Frontier
Alongside this convergence with social media, fintech platforms have stepped in to fill widening gaps left by traditional banks as the industry shifts toward a digital-first model.
These fintech players have gained traction by delivering exactly what consumers are seeking: streamlined, digital-first user experiences powered by AI-driven personalization. One reason fintech chatbots often outperform their traditional banking counterparts is they leverage AI to provide far greater conversational and assistance capabilities. By contrast, concerns around misinformation and liability have led many bank chatbots to avoid answering questions about core services such as lending.
“What we’re finding is there’s this dichotomy of fintechs that are building virtual assistants that can address lending, and then banks that are supposed to be full-service but have digital chatbots and virtual assistants that essentially ignore lending completely,” Dylan Lerner, Senior Digital Banking Analyst at Javelin Strategy & Research told PaymentsJournal.
“If you want to engage lending in this way, you have to have a chatbot or virtual assistant that is capable of handling this kind of sensitive topic,” he said. “Not only do you have to address questions about lending, but there’s so much opportunity if you do.”
An Investment in Trust
Each time consumers turn to fintechs—or other third-party sources—for financial guidance, banks risk losing opportunities to build lasting relationships. While open banking model has expanded access and innovation, it has also made it more difficult for banks and credit unions to differentiate themselves.
“As open banking has made financial services more modular for the retail consumer—the ability to have accounts that you pay out of, accounts that you save into, accounts that you pay friends out of, accounts that you pay bills out of, maybe accounts that you shop with—having all of that and that ability to immediately access that through open-banking standards means that the core DDA, that core relationship you have with your primary financial institution, is under threat,” James Wester, Co-Head of Payments at Javelin Strategy & Research, told PaymentsJournal.
Still, many customers would still prefer to rely on their primary financial institution for guidance—if it meets their expectations. This creates a clear imperative. Institutions must evolve their strategies to mirror what has worked for fintechs, including delivering personalized digital experiences that resonate with younger audiences.
Building these relationships requires a long-term investment in trust. Amid rising concerns about fraud and data breaches, users demand transparency—not just in how AI is used to manage their finances, but also in how their data is protected. As banks, fintechs, merchants, and other organizations become interconnected, concerns about privacy will only intensify.
These security concerns, coupled with the ongoing demand for guidance, spotlight a central truth—even as technology grows more powerful, it has yet to replace the human element.
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