How AI Is Transforming the Banking Industry & What It Means for Consumers | Matt talks to Scripps Financial News

Artificial Intelligence (AI) is no longer a futuristic concept—it’s embedded into nearly every part of our daily lives. From personalized playlists on Spotify to voice assistants in our homes, AI has quietly become the invisible infrastructure of modern life. But one of the most profound shifts is happening in a less visible space: banking.

Financial institutions are undergoing a foundational transformation, using AI to automate customer service, optimize operations, and personalize financial planning. But as this technology advances, so do concerns around data privacy, bias, and the future of work.

In a recent interview on Scripps Financial News, Matt Britton, CEO of consumer intelligence platform Suzy and author of Generation AI, unpacked the real-time implications of AI in finance. In this post, we explore his key insights and what they mean for today’s consumers and the financial industry at large.

The AI-Powered Bank Is Already Here

You no longer need to walk into a branch to deposit a check or get financial advice. Apps like Chime, SoFi, and even traditional banks now offer digital experiences that are completely powered by AI. From chatbots that answer questions 24/7 to systems that analyze your creditworthiness in seconds, AI is embedded across the customer journey.

“Consumers are essentially trading data for the benefit that AI provides,” Britton explains. That might mean uploading mortgage documents, bank statements, or investment accounts in exchange for a smart financial assistant that can analyze trends, suggest improvements, and even automate decisions.

This new paradigm offers convenience and speed, but it also comes with a price: privacy.

Privacy and Security in the Age of AI

Privacy is one of the biggest concerns surrounding AI—especially in finance. When consumers feed sensitive data into AI-powered systems, they’re often unclear about how that data is stored, used, or shared.

“There’s always a tradeoff,” Britton says. “Just like with social media, where we gave up privacy for exposure, with AI we’re giving up privacy for personalization and automation.”

So what should consumers do?

1. Be your own best advocate.

You shouldn’t rely solely on AI or a human advisor. Britton urges consumers to develop their own understanding of financial fundamentals and use AI tools to validate and augment decisions—not make them blindly.

2. Know your data rights.

Understand the privacy policies of your bank or fintech platform. Do they sell your data? Do they use it to train algorithms? The fine print matters.

3. Use secure platforms.

Stick to trusted financial institutions with strong reputations for cybersecurity. Avoid uploading sensitive information to unverified apps or experimental AI tools.

AI Bias and the Risk of Inaccuracy

AI isn’t infallible. Algorithms are only as good as the data they’re trained on. In banking, this can lead to issues of bias, especially in lending decisions. For example, if historical data reflects past discrimination in loan approvals, AI could reinforce those patterns—rejecting applicants unfairly or skewing risk assessments.

Britton compares this to human advisors, who are also subject to bias, albeit in different ways. A wealth manager might unconsciously recommend a stock because their teenager mentioned it on the way to school.

AI, at its best, can remove emotion and human error. But it can also amplify flaws if left unchecked.

So how do you ensure accuracy?

1. Cross-check recommendations.

Britton recommends using tools like ChatGPT, Claude, or Perplexity to fact-check AI insights and compare multiple sources.

2. Ask for transparency.

If your bank uses AI to assess your creditworthiness or automate decisions, ask what criteria are being used. Financial institutions should be able to explain their models—at least at a high level.

The End of Brick-and-Mortar Banking?

One of the most striking changes AI is accelerating is the decline of physical bank branches.

“The legacy banking system is riddled with outdated infrastructure,” says Britton. “You used to need a branch for everything—cashing checks, applying for a loan, or getting advice. Now you don’t.”

Neo-banks like Chime and SoFi were built without physical locations—and that’s their advantage. They’re leaner, more scalable, and able to pass savings directly to consumers. It’s no surprise they’re winning with Gen Z, the first generation of truly digital-native consumers.

This trend doesn’t just affect real estate—it’s reshaping the entire workforce of the banking industry.

AI and the Future of Jobs in Finance

AI will make many traditional banking roles obsolete. Bank tellers, loan officers, and even customer service reps are already being replaced or augmented by automation. But this isn’t just about cutting costs.

It’s about rethinking roles.

Britton emphasizes that 80% of the jobs that will exist in 2030 haven’t been invented yet. The financial industry won’t disappear—it will evolve. New roles will emerge in AI ethics, algorithm auditing, digital financial planning, and data security.

For current and future professionals in finance, the message is clear:

• Reskill continuously.

• Learn how AI works, even if you’re not technical.

• Focus on skills that machines can’t replicate: empathy, creativity, and critical thinking.

Why Gen Z and Gen Alpha Are Reshaping Finance

Millennials disrupted the banking industry with mobile-first behavior. Gen Z is finishing the job—and Gen Alpha, born into a world of AI and automation, will redefine expectations entirely.

They’ll never know a world without voice assistants, biometric banking, or real-time recommendations. This generation won’t tolerate friction in financial services—and they’ll prioritize brands that feel like extensions of their lifestyle, not just utilities.

Financial institutions that don’t evolve will be left behind.

Final Takeaway: Be Curious, Not Complacent

AI in banking isn’t optional—it’s inevitable. The key is to approach it with curiosity and caution. Embrace the tools that make life easier, but ask hard questions about how they work and who they benefit.

As Matt Britton put it in his interview:

“We’re not going backward. AI is here to stay. Every CEO knows their job now is to figure out how to leverage it. And the rest of us—consumers, parents, employees—need to adapt and future-proof ourselves.”

If you’re in finance, tech, or just managing your own money you can’t afford to ignore the AI shift. Understand it. Question it. Use it.