Consumers increasingly are looking to AI for financial advice.   

Fifty-one percent of consumers are looking to AI for financial information or advice, according to a recent JD Power report. 

Most are tapping ChatGPT and Google Gemini, but some users are using Microsoft Copilot, Meta AI and others, according to the report. 

Consumers are asking the technology questions about the following: 

• Savings strategies; 

• Credit scores; 

• Budgeting and managing expenses; and 

• General financial education. 

Consumers’ reliance on AI for financial questions opens an opportunity for banks to offer their own AI-driven solutions, thereby satisfying their customers and preventing them from taking their business elsewhere, the report stated. 

“AI and actually broader connectivity in financial services in general, creates both a challenge and an opportunity for financial institutions,” David Snitkof, general manager of small business at document AI platform Ocrolus, told Bank Automation News.  

“The ones who use it well will use it to retain their customers and become an even bigger part of their financial lives, the ones who don’t use it well will lose out on clients and relationships to those that do,” Snitkof said.  

Meeting demand for AI

Some FIs are leaning into AI as an opportunity.  

The $1.4 billion Grasshopper Bank responded to its clients’ demand for AI-driven personalized financial management solutions, Nate Gruendemann, product manager at Grasshopper, previously told Bank Automation News. 

In August, the bank and tech provider Narmi launched a model context protocol server, giving their business clients access to personalized financial analysis, according to an Aug. 20 Grasshopper release. 

The following institutions have also deployed AI solutions for financial management to meet client demand: 

• $3.4 trillion Bank of America; 

• $330 million Red Rocks Credit Union; 

• $544 billion Truist; and 

• $673 billion U.S. Bank. 

FinAi

Fintechs are also creating AI-driven financial management solutions. 

In July, banking platform Nymbus and transaction data and AI-driven insights provider Bud Financial announced the launch of personal financial management widgets for banks and credit unions, according to a July 8 release. 

“This integration supports our mission of providing banks and credit unions with the tools they need to grow, differentiate and deliver modern, personalized banking experiences,” said Jeffery Kendall, CEO and chairman at Nymbus, said in the release. 

If consumers can go to ChatGPT, or the likes of ChatGPT, and receive competent answers, then banks need to provide that same service or consumers “might question why [they bank] there,” Ocrolous’ Snitkof said. 

“I think the ideal person or service at a bank is going to be AI-enabled,” Snitkof said. 

FIs need to raise the bar to keep up with demand for AI-driven services, and in this case, ChatGPT is setting the bar, he said.  

Check out our exclusive new bank industry data here.