Artificial intelligence (AI) is rapidly transforming all aspects of our lives. Across industries, businesses are increasingly adopting AI technology to enhance their services, from streamlining internal processes to improving customer-facing services, and
the banking and financial services sector is no exception.
While a lot of what customers see are AI assistants and faster services, behind this is a complex web of regulation, standards and manual oversight. These safeguards are crucial to stopping opportunistic providers from offering flashy but untested solutions
that undermine trust.
This is important, particularly in the UK, where British consumers appear to be some of the most prepared in Europe to embrace digital change in terms of the way they manage their money, but have strong specific concerns over the use of AI in the sector.
UK financial providers are embracing AI powered services
Banks, insurers and other financial services providers in the UK are now using AI, and specifically Generative AI (GenAI), regularly in their services. Six in ten (62%) professionals across the financial services sector, rising to two thirds (68%) of banking
professionals, say that their company is already using AI. What’s more, one in five (19%) professionals claim their company already relies on AI extensively for their services, with no plans to change this in the future.
The benefits that AI, including genAI, brings to financial services are far-reaching; from helping to analyse large amounts of data, to fraud detection and protecting services and customers against cybersecurity risks. One
study by the Bank of England has estimated that over the next 15 years, GenAI could bring productivity gains of up to 30% in the banking and insurance sectors, and to firms operating in capital markets.
Brits readiest to embrace a digital future
In terms of preparedness for these technological changes, Brits are some of the readiest in Europe to embrace AI innovations. They are the most likely across the continent to anticipate a fully digital future – so much so that three quarters of UK consumers
believe that by 2030, they will no longer have any interactions with bank staff.
A majority also expect future developments will enable them to manage all of their finances through a single app and, by sharing more of their data, have better access to highly personalised and near instant decisions concerning their finances.
While the UK is leading the digital transformation of financial services in Europe, there still remain significant challenges. This means that banks and financial providers must walk a difficult tightrope, balancing the high expectations of consumers who
are hotly anticipating the transformative benefits of new technology, while reassuring those who have ongoing concerns around the pace of change.
Generational divides define opinion
Reflecting broader societal trends around
digital comfort levels and age, British opinion on AI in banking and financial services is currently largely split by generation.
Gen Z (50%) and millennials (52%) are the most receptive to using new technologies, keen to engage with services such as AI chatbots if it means quicker, more efficient services. In contrast, just 31% of Gen X and 27% of Baby Boomers feel this way, showing
more hesitation and a desire to retain human-centred services.
Similarly, older generations express more scepticism around the use of AI in banking and financial services. While half (48%) of Gen Z and millennials believe that AI could help banks better detect and combat fraud, 36% of Baby Boomers believe that there
are risks associated with AI, compared to just a fifth of Gen Z.
These divides go deeper than simple openness versus scepticism. Older consumers often express concern about the impact of AI on jobs and about their children being at the mercy of technologies they feel they cannot fully control. Meanwhile, younger generations,
immersed in a digital-first world, are more comfortable with GenAI but may also be more vulnerable, especially when many have never known a world without these tools.
Responsible oversight key to consumer confidence
However, with all consumers increasingly making decisions about providers based on their ethics, values, and transparency, there is a clear need – regardless of age – to promote trust and human oversight when adopting new services, such as those powered
by AI.
While younger generations are more open to embracing newer technologies like GenAI, they are also some of the most concerned with responsible practices.
Gen Z are increasingly putting greater emphasis on ethical considerations, seeking out products that align with their values – spanning green credentials, social responsibility and transparency – and financial services are no exception.
Although the UK is a nation clearly anticipating continued digital change, gaining the trust and positive sentiment across generations around the adoption of AI in financial services and banking will largely depend on whether they’re implemented responsibly.
As we quickly approach 2030, and with it an increasingly digital landscape, it’s becoming clearer that innovation must walk hand in hand with accountability. Future winners in the banking and financial services sector will be those who can harness AI’s speed
and intelligence while protecting consumers from opportunists, preserving human oversight and ensuring that innovation strengthens – rather than weakens – the control we have over our finances.
