Less Than 5% of Gen Z Completely Trust AI-Driven Banking, Compared to 21% of Millennials
PHILADELPHIA, Aug. 20, 2024 – LevLane Advertising, one of Philadelphia’s largest independent full-service advertising agencies, today announced the results of its “2024 Future of Banking Survey.” The survey is the second of two national surveys that explore generational perspectives and expectations about the future of banking.
The survey of 500 U.S. adults was commissioned by LevLane Advertising using Survey Monkey.
“Like the first survey in our series, which discovered a surprising alliance between Generation Z and baby boomers, we again found similarities between the youngest and oldest generations,” said Liz Weir, chief marketing officer at LevLane. “While millennials and Generation X are leading the charge toward digital-only banking, 65% of Gen Z, who are thought of as more digitally savvy, would actually prefer having branch access, aligning them more closely with boomers.”
Despite the rapid growth of digital banking, the results highlight the importance of local bank branches across all age groups, revealing insights that banks can leverage to balance their physical and digital investments.
Access to a local branch is crucial for most respondents across all generations (75%), with most needing it daily or weekly.
Notably, only 30% of survey respondents feel “very comfortable” using digital-only banking services, with Gen X leading this trend at 42%.
Millennials show a mixed response: 32% report feeling “somewhat comfortable,” and only 18% are “very comfortable.” This suggests that while they are open to digital banking, there is still room for increased adoption and confidence among younger users.
A strong preference for human interaction is evident across all age groups, particularly those aged 45-60. An overwhelming 88% of Gen X prefer human interaction over AI.
“Trust in AI features is significantly higher among millennials compared to Gen Z,” added Weir. “While 21% of millennials completely trust AI-driven banking features, less than 5% of Gen Z share that trust. As AI advances, understanding these trust issues is crucial for banks aiming to improve adoption rates. What it underscores is that despite the rise of digital banking, physical branches and human interaction still play a critical role in customers’ banking needs.”
Additional Survey Findings:
- Branch Visits for Account Management: Baby boomers are significantly more likely to visit a branch for opening or closing accounts (36%) compared to Gen Z (16%).
- Financial Advice: Baby boomers are more likely to visit a branch for financial advice (13%) compared to other generations, with only 5% of millennials doing so.
- Withdrawals: Millennials are the most likely to visit a branch for withdrawals, with 36% citing this as their primary reason, while Gen Z is less likely at 23%.
- Loan Services: Gen Z shows the highest likelihood of visiting a branch for loan services (8%) compared to other generations, indicating a potential interest in in-person consultation for financial decisions.
