Banks and Credit Unions Embrace AI to Improve Customer Service
Financial institutions of all sizes are turning to artificial intelligence (AI) to enhance their customer service operations. A recent survey of 130 bank and credit union leaders reveals a strong optimism about AI's role in improving customer experience (CX) over the next few years.
Larger banks, especially national ones, are leading the way in AI adoption. Around 60% of respondents play a key role in their organization's data, analytics, and AI initiatives, signaling a widespread commitment to integrating AI into their operations.
Key Insights from the Survey
- National banks report the most advanced AI adoption and are optimistic about its impact on CX.
- Fraud detection and reducing friction in customer interactions top the list of AI-driven improvements for 2025.
- AI has significantly boosted financial education for customers and sped up response times.
- Concerns remain about AI introducing bias or weakening customer relationships.
AI Adoption Across Different Bank Sizes
Executives at the largest banks expect noticeable changes in CX due to AI within two years. Banks with assets between $10 billion and $100 billion show mixed expectations, while community banks are more cautious, with a small percentage expecting no impact.
Experts predict these differences will lessen as AI solutions become more accessible. Proven vendor tools will help democratize AI beyond the largest institutions, reaching smaller banks and credit unions.
Community banks have been using AI-like tools for decades, especially in fraud detection and credit scoring. They continue exploring responsible ways to apply AI to better serve customers and streamline operations.
AI Adoption Trends
- 51% of national banks are adopting AI enterprise-wide.
- 15% of midsize banks and 8% of community banks are doing the same.
- Credit unions mostly remain in exploratory phases or small pilot programs.
Government support, including relaxed regulations and federal incentives, is accelerating AI use in financial services. However, basic AI functionalities like chatbots and underwriting are becoming standard, meaning AI-driven advantages will soon be expected rather than exceptional.
Measuring AI’s Impact
Successful AI implementation requires clear goals and metrics. Many institutions stumble by not establishing a baseline or defining how to measure AI-driven improvements. Tracking progress before and after AI adoption ensures that investments deliver tangible value.
Priorities for AI-Driven Customer Experience Improvements
- Fraud detection enhancements (68% of leaders prioritize this).
- Increasing ease of use for customer portals (60%).
- Boosting security and identity verification (57%).
- Other goals include faster responses, integrated multi-channel experiences, and smoother onboarding.
Affordable AI tools offered as-a-service are enabling smaller institutions to automate routine tasks. This frees staff to focus on building genuine customer relationships — a crucial advantage in community banking and credit unions.
Future Directions for AI in Customer Service
Beyond basic functions, AI is enhancing financial literacy for customers and improving platform usability. Emerging technologies like agentic AI — which can operate autonomously within set boundaries — show promise in areas such as compliance, sales, credit decisions, and research.
These tools support staff by surfacing insights and drafting communications, while humans retain final decision-making authority.
Concerns and Challenges
While regulatory issues are less pressing, banks worry about AI causing:
- Unauthentic messaging.
- Weakened customer relationships.
- Bias or unfairness in interactions.
- Misleading information and privacy concerns.
Smaller banks and credit unions face additional hurdles due to limited IT resources and AI expertise. Dependence on third-party vendors requires strong oversight to avoid wasted resources and maintain customer trust.
Setting up clear governance and evaluation processes is essential for responsible AI use and long-term success.
For customer support professionals aiming to stay ahead, understanding these AI trends and challenges is vital. Learning about practical AI applications and how to measure their impact can help improve customer experiences effectively.
Explore relevant AI training courses to build your skills and adapt to these changes: AI Courses for Customer Support Professionals.
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