In many ways, your local community bank being the trusted financial source for the young and old alike is an outdated concept. In today’s financial era, neobanks and peer-to-peer payments are mainstream. A customer might never interact with a bank teller or branch manager. It can make traditional financial institutions worry they are a thing of the past.  

Both Millennials and Gen Z are digital natives making it is no surprise to see Fintech app usage raising to 78%.  AI adoption continues to grow, but the skills gap to implement such technology is the largest barrier for true workplace impact. The differing generations have increasingly different wants and needs when it comes to banking. So, what are you to do? 

Build A Strong AI Framework 

AI is here to stay. Is your company set up to utilize it for maximum impact? Deloitte reports that 42% of companies feel ready strategically but lacking in operational preparedness. Start by ensuring your employees gain the AI fluency needed to use and implement the AI tools your institution has adopted.  But don’t stop there. 84% of financial institutions have yet to redesign jobs and work flows around AI automations. They remain stuck using surface level capabilities. Want to be ahead of the curve? Consider creating a cross functional team with key members representing IT, risk, compliance and operations to create and deploy AI workflows that scale.  

As autonomous AI Agents are increasingly on the scene, it is important to note it is not replacing human roles; rather it is allowing humans to allocate their time for tasks with higher values. As your company utilizes AI Agents, it is important to establish governance early on as AI oversight is imperative for managing both data and risk. The cross functional team responsible for AI should have processes for both evaluation, guardrail creation, and risk mitigation.  

Creating a framework that allows AI capabilities to scale, while providing oversight will set you apart from your competitors. As AI Agents have the potential to increase profitability and decrease cost by 30% each, early adoption might just be the key to internal and external success. 

Provide Hyper Personalized Banking Options 

One sized banking does not fit all.  Today’s customers expect more than generic solutions for their financial needs. Customized options have the potential to boost both satisfaction and retention. By utilizing first party data and customer habits, you can tailor advice, solutions, and offers enhancing engagement and building trust. AI and machine learning form the backbone of this style of banking. From analyzing data to chatbot capabilities, they can provide insights and advice while learning for the future. Take it a step further by anticipating life stage needs. Contextualizing the data allows you not to suggest what they might want, but to provide them with what they actually need.  

Highlight Human Expertise   

AI cannot replace human experience, judgement, and relationship capabilities. AI has the ability to reduce friction and create seamless experiences for clients. It cannot, however, replace the need humans have for human interactions. 80% of affluent households are willing to pay for human financial advice making it paramount that you feature yours.  

Consider webinars and other educational opportunities.  From financial advisors to AI experts, hosting online or in-person workshops allows customers to ask questions and gain insight from their expertise. These offerings not only increase engagement but build trust as you are seen as the financial thought leaders in your community.  

Be The Bank Customers Need 

Educating employees and implementing AI workflows creates a framework that inevitably supports customers. Having robust governance practices in place reduces risk for both the bank and the customer. Today’s customers expect a financial institution capable of providing a customized banking experience tailored to their life stage and habits. AI has the ability to both enhance the customer experience and free experts to create meaningful relationships as they provide higher value advice and solutions. Lean into AI capabilities and leverage human roles. Invest in both your cross functional AI team and the customer facing team to set your bank up for the current era.