FinTechs widen AI adoption gap with traditional banks

By Milan Rojan

FinTech companies have continued to outpace traditional financial institutions in the adoption of artificial intelligence across customer-facing use cases, with the largest gap recorded in mobile money.

Data from a global survey has shown that FinTechs have generally deployed AI more extensively in areas linked to customer experience, payments and product development.

AI-powered customer support has recorded the highest adoption among FinTechs at 82%, compared with 67% among traditional financial institutions. The 15 percentage-point gap has highlighted differences in how the two groups have approached AI-driven customer interaction.

Mobile money has recorded the widest adoption gap, with 51% of FinTechs using AI compared with 26% of traditional financial institutions. The use case has covered mobile-based financial services including digital wallets, payments and money transfers.

Investment research and payment monitoring have also shown significant differences. Adoption of AI for investment research has stood at 69% among FinTechs versus 49% at traditional financial institutions, while payment monitoring has reached 62% and 41%, respectively.

However, adoption has been more closely aligned in areas where regulatory and operational requirements have influenced technology investment. Cybersecurity has recorded adoption rates of 54% among FinTechs and 53% among traditional institutions, while prudential and liquidity management has reached 32% and 31%, respectively.

Data visualisation has represented another area of convergence, with both groups recording 77% adoption. Traditional financial institutions have retained marginal leads in trading, portfolio and intelligence, at 42% compared with 40%, and professional advisory services, at 37% versus 34%.

The figures have suggested that FinTechs have focused AI investment more heavily on areas directly affecting customers and revenue generation. Traditional financial institutions have taken a more measured approach, particularly in customer-facing applications, while maintaining similar levels of adoption in risk and control functions.

The differing adoption patterns have underscored the growing competitive pressure on established financial institutions to integrate AI into customer experience and product delivery as FinTechs have continued to advance their use of the technology.