AI, Digital Banking Aren't Killing The Branch: 89% Still Want Access To People
By CU Today Staff —
BOSTON—Even as artificial intelligence makes deeper inroads into personal finance, 90% of middle-income Americans still prefer speaking with a knowledgeable person rather than AI when making major financial decisions, according to Santander US’ latest Paths to Prosperity study, research conducted by Morning Consult on behalf of Santander US.
At the same time, 89% said they want to handle most banking tasks digitally while retaining access to a branch staffed by people who can help.
The findings suggest consumers increasingly see digital banking and physical branches as complementary rather than competing channels. Eighty-three percent said they have greater confidence in a digital banking provider that also operates physical branches, including 87% of Gen Z, 85% of Millennials, 82% of Gen X and 75% of Baby Boomers. Consumers cited resolving complex issues, getting personalized guidance from a knowledgeable banker and discussing important financial decisions privately as the top reasons for visiting a branch.
That preference persists even as AI use grows. The Santander report found 42% of respondents have used AI during the past year to help with a financial task or decision, led by 50% of both Gen Z and Millennials, compared with 34% of Gen X and 22% of Baby Boomers. The most common uses were finding ways to save money or reduce expenses, making savings and investment decisions and understanding rates, fees, terms or financial documents.
The research also found traditional financial institutions hold an advantage over stand-alone fintechs. Seventy-nine percent said they prefer digital banking with a traditional bank over an unaffiliated fintech, while 86% said they would have more confidence in a digital banking provider if it were owned and backed by a financially stable bank. Ninety-one percent said choosing the right bank is important to achieving financial prosperity.
Morning Consult conducted the study for Santander US June 25-29 among 2,199 Americans ages 18 to 76 who are banking or financial services customers and have household incomes between $55,000 and $167,000. Respondents were employed or looking for work, used at least one financial product and were primary or shared household financial decision-makers.
Originally reported by CU Today.