How banks can use AI to win over customers

AI is challenging the way that every industry works, which is posing a unique challenge for banks. Banks are notoriously slow to adopt new tech and make sweeping institutional changes. 

As reported at the 2025 American Bank Digital Conference, just 52% of banks have fully implemented chatbots and biometric security - falling behind other industries.

Many banks are bogged down by legacy technology that makes it challenging to take advantage of all of the opportunities that AI presents. It’s part of why fintechs are gaining market share - they’re built on modern information technology and systems. As a result, they can more nimbly keep up and deliver the personalized experiences that consumers appreciate.

But it should be a bigger focus: NVIDIA’s 2025 State of AI in Financial Services report found that just 26% of financial services professionals said that one of the top two benefits of AI was improving the customer experience. This is a huge area of opportunity for banks. The financial services companies that use AI to enhance the customer experience are positioned to grow at the expense of those that have outdated operations and offerings.

Keep reading for ideas how banks can use AI to win by focusing on improving the customer experience.

AI-powered customer experiences for banks

NVIDIA’s report found that 60% of financial services professionals are either using or assessing generative AI for customer experience and engagement - up from 25% the year before. This means more and more financial institutions will likely be implementing AI-powered customer experience improvements.

Here are four specific ways AI can facilitate better customer experiences in banking:

Many brands have virtual assistants to help current and prospective customers self-serve more effectively. They are a unique opportunity for banks as consumers appreciate guidance with navigating financial decisions. Bank of America’s Erica is a great example of an interactive, AI-powered tool that helps deliver a better customer experience in an efficient way.

Centralized support

By unifying customer data and interactions across channels, banks can deliver faster, more personalized support. Having all of the customer information in one central CRM and customer support platforms helps to automate routine inquiries, assist customer service agents with real-time suggestions, and ensure consistent service quality. This streamlining can reduce wait times and boost customer satisfaction. A centralized support platform enables banks to integrate messaging, email, and self-service tools in one place, driving efficient, responsive, and intelligent support tailored to each customer’s needs.

Looking for a platform to use? Hint: Check out Kustomer. Get our guide breaking down what to look for in a customer experience CRM platform.

AI (customer service) Agents

Banks can elevate customer experience by deploying autonomous AI agents which handle routine tasks—such as balance inquiries or transaction tracking - instantly and accurately, freeing up human agents for complex issues. Going beyond chatbots, AI agents can actually handle follow-up work and resolve issues rather than just deflect simple inquiries.

Kustomer’s AI Agent capabilities ensure seamless escalation, context retention, and personalized service across channels. By proactively resolving issues and offering 24/7 support, autonomous AI agents reduce friction, enhance satisfaction, and create a faster, smarter customer journey in today’s digital-first banking landscape.

App engagement

New tools specifically for banks leverage the power of AI to supercharge the capabilities of banking apps. One such tool, Personetics, used by global banks such as Scotiabank, provides real-time insights and personalized user journeys for banking customers. This helps customers meet their financial goals which enhances engagement with the banking app, which is critical to retaining customers and increasing their deposit dollars with your financial institution.

AI tech advancements for banks

Thanks to advancements in computing, AI stands to improve many of the technological operations around a bank. For example, the NVIDIA report found that with AI, PayPal reduced cloud costs up to 70% and runtime by 35%. If banks can take these advancements a step further, they can indirectly enhance the customer experience.The 2025 American Bank Digital Conference reported that fewer than 35% of banks have implemented other AI-powered solutions such as virtual assistants, document processing, predictive analytics, or anti-money laundering.

AI increasing bank profitability

Using AI for pricing, risk management, underwriting, and combating fraud can help deliver better, more cost-efficient products and services to your customers. Fraud is costly: LexisNexis reports that as of 2024, fraud costs financial institutions in the U.S. and Canada $4.45 for every dollar lost to fraud, a 28% increase from 2023. Implementing AI tech advancements for mitigating fraud alone can have big impacts on your operations as well as the spared victims of fraud.

But just how much is AI impacting profitability for banks? What kind of return can banks get from implementing AI? The numbers may surprise you.

NVIDIA’s report found that AI stands to both reduce costs and increase revenue. Most respondents estimate this is to the tune of 5-10%, but a solid portion of financial services professionals expect gains of 10%, and a few expect gains of over 20%. If a bank uses AI for more areas around the organization - customer experience, operations, fraud mitigation - it may find it’s on the higher end of how much AI can improve its profitability.

When banks can drive time and cost efficiencies with AI, they can use those freed-up resources to make other improvements or offer more perks to customers - attracting new ones and building loyalty.

Final thoughts

The biggest gains come when all the systems seamlessly integrate - or better yet, are one and the same system. Check out our guide on what to look for in a customer experience CRM platform to help you evaluate which platforms will help set your organization up for success when integrating AI into your customer experience.

Ready to get started? Talk to our team today about how Kustomer can supercharge your financial institution's customer support!