AI Rapidly Reshaping How Consumers Discover, Compare & Choose Banking Products (But Trust Remains an Issue)
SYDNEY — Artificial intelligence is rapidly reshaping how consumers discover, compare and select banking products, forcing financial institutions to rethink their digital marketing and customer acquisition strategies, according to a new report from Bain & Company.
The report, titled “How AI Rewrites the Rules of Brand Discoverability in Banking,” found that AI assistants such as ChatGPT, Claude and Google Gemini are increasingly acting as the first point of contact between consumers and banks, particularly in Australia, where consumers are using the technology to evaluate products, interpret fees and even prepare applications for loans and credit cards.
According to Bain & Company, the traditional banking sales funnel — once driven by branches, brokers, advertising and search engine rankings — is rapidly shifting toward AI-generated recommendations and responses.
‘Increasingly Influencing Choice’
“AI assistants increasingly influence the choice by shaping perception, driving traffic, and converting demand,” Bain & Company said in the report.
The consulting firm said its analysis, conducted with research company Profound using 6,000 consumer prompts and queries in Australia, showed consumers increasingly rely on AI tools to compare products and simplify complex financial information. Roughly one-third of banking-related AI queries involved home loans, including requests to identify lenders offering fast preapprovals or other desired features. Consumers also pasted credit card fee disclosures into AI assistants and asked the tools to explain the fine print in simpler language, Bain & Company said.
According to Bain & Company, AI assistants are becoming “the port of entry” for banking relationships instead of traditional bank channels such as websites, branches or call centers.
The Role of Third Parties
The report found AI-generated recommendations are heavily influenced by third-party sources, including:
- Social media platforms
- Comparison websites
- Customer reviews
- Online forums
- Independent content sites
Bain & Company said this marks a significant shift from traditional search engines because AI systems incorporate broader sentiment and commentary into recommendations.
The report also found that some smaller and digital-first banks were gaining visibility in AI-generated recommendations despite having smaller market shares. Bain & Company cited Australian digital lenders such as Unloan and Loans.com.auas examples of challenger brands appearing prominently in AI-generated mortgage recommendations alongside larger institutions.
Big U.S. Brands Appear Down Under
At the same time, Bain & Company said some U.S.-based financial brands, including JPMorgan Chase and Capital One, appeared frequently in Australian AI-generated credit card recommendations despite having limited or no direct consumer card operations in Australia. Bain & Company attributed that to the large amount of global online content available about those companies.
The report said AI assistants are increasingly influencing not only brand visibility but also brand perception. Bain & Company found positive AI-generated descriptions were associated with:
- Clear and structured product information
- Transparent pricing and policies
- Credible third-party validation
- Consistent customer feedback
Negative AI-generated sentiment, meanwhile, was often linked to fraud concerns, regulatory scrutiny, customer complaints, service delays and disputes over fees, according to the report.
Consumers Grow More Sophisticated
Bain & Company also said consumers are beginning to use AI assistants beyond research and comparison and into the purchasing process itself. The report highlighted examples including Intuit integrating Credit Karma tools into ChatGPT to provide personalized credit card and loan recommendations based on users’ credit profiles.
Insurance companies are also experimenting with AI-based purchasing tools, according to Bain & Company. The report cited Insurify, Tuio and Aviva as companies building AI-enabled insurance comparison and quoting tools within ChatGPT.
Despite growing adoption, Bain & Company said trust remains a major barrier to broader AI use in financial services. The firm said only one-quarter of U.S. consumers surveyed said they were comfortable using AI to complete purchases, citing concerns over privacy, data security and the possibility AI systems could misunderstand customer needs.
Where FIs Should Focus
Bain & Company said banks seeking to compete effectively in the AI era should focus on:
- Managing how AI systems frame and describe their brands
- Building stronger third-party online credibility
- Structuring website content for AI readability
- Developing segmented value propositions tailored to AI-driven searches
- Creating safeguards around AI-enabled financial transactions
- Providing human support during complex or high-stakes financial decisions
“Banks no longer compete only for customer attention but also for how machines interpret their offerings and act on customers’ behalf,” Bain & Company said in the report.
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