In-app AI financial tools are a feature worth marketing to Gen Zers

The news: BMO’s Real Financial Progress Index found that a majority of Gen Zers use AI to manage finances and investments—more than any other generation.

• That’s according to a survey of 2,501 US consumers that Ipsos conducted between May and June 2024.

Zoom in: Over one-third of Americans use AI for financial management, with Gen Z leading at 61%. Consumers’ most common uses of AI include:

• Learning about personal finance (49%)
• Budgeting (48%)
• Identifying investment strategies (47%)
• Building savings (47%)
• Updating financial plans (46%)

Among the consumers who don’t yet use AI for these purposes, almost one in three is considering using AI for personal finance education, savings, investment strategies, budgeting, financial planning, or retirement planning.

What about the skeptics? Almost half of US banking consumers are fine with their banks incorporating AI, but there’s likely a generational factor at work. According to market research firm Bellomoy, Gen Zers have started to rely on AI for much more than financial advice.

• 82% of Gen Zers use AI in some capacity.
• Almost half use it for career advice, and many others turn to tools like ChatGPT for mental health support because of its 24/7 availability and discretion.

Clearly many young consumers trust AI with deeply personal and important aspects of their lives. So while older generations may be more skeptical of its use in banking, younger cohorts’ desire to use AI for financial advice aligns with their overall comfort with using AI.

The marketing takeaways: Though most banks have started exploring AI capabilities for their operations, not every bank offers AI tools that align with Gen Z’s desire for financial guidance.

• Those that do should lean in on marketing the availability of these tools to Gen Zers in targeted campaigns. This is likely a major differentiating factor that could drive customer acquisition efforts.

And young consumers in particular read reviews, watch YouTube videos, and want to test-drive apps before committing to financial products.

• Banks that offer AI-driven advisory tools should consider allowing users to test-drive or have limited access to those tools while encouraging them to become customers for the full version.