5 AI advancements banks, fintechs are excited about

At a time when AI use is moving at lightning speed in financial services, technology leaders can’t help but ponder the possibilities. Active use of AI in financial services has more than doubled to 75% in 2026 from 30% in 2024, according to a May 11 report by professional services firm KPMG , which surveyed more than 1,000 leaders in 20 countries. While concerns about AI persist, industry leaders are optimistic. Making ‘data sing’ Grasshopper Bank , for one, is most excited about AI’s ability to aggregate data “and then make it sing for you using AI,” Chief Executive Mike Butler told FinAi News . “That combination of data and AI is incredibly powerful in my mind and will allow for instant decisions, better decisions, better client experiences,” he said. The $1.6 billion digital bank has deployed AI in areas including commercial lending, risk management and account opening, as previously reported by FinAi News. [caption id="attachment_57379100" align="aligncenter" width="600"] (ChatGPT/AI-generated)[/caption] Financial advising Advancements in predictive AI and customer-facing AI assistants are creating buzz because they enable banking professionals to focus on their strengths as financial advisers, Jay Budzik , senior vice president and director of AI at Fifth Third Bank , told FinAi News . “The financial advice aspect is constrained to the number of hours that a banker can spend with a client, either on the phone or in a one-on-one interaction,” he said. “But AI offers us that opportunity to scale the expertise of our personal bankers.” For example, the $294 billion bank could expand its wealth management business as AI assistants provide 24/7 support, Budzik said. Using AI for tasks such as structuring data and payment reminders also gives bankers more time to focus on client relationships, he added . [caption id="attachment_219178" align="aligncenter" width="800"] A Fifth Third branch in Louisville, Ky. (Photo/Bloomberg)[/caption] Personal agents Spinwheel , a B2B fintech that helps institutions provide debt management and payments solutions, envisions a future in which consumers are empowered by personal AI agents, CEO Tomas Campos told FinAi News . “In the same way that everybody's got an iPhone or smartphone now, I think that everybody's going to have their own personal agent that's just helping manage their lives and making their lives so much easier,” he said. Agentic AI seems poised to handle low-risk financial choices such as booking a restaurant reservation or online shopping, but the true test will lay in higher-stakes decisions such as mortgage and auto loans, Campos said. The agentic AI market is projected to ballon to $44.5 billion by 2030, up from $7.5 billion in 2025, according to an Oct. 2 report by consultancy firm Arthur D. Little . Explainability For tech-driven investment management firm Edge Focus , improvements in how AI handles explainability and auditability are crucial amid regulatory risks tied to structured finance and private credit markets, CEO Elliott Lorenz told FinAi News . Explainability highlights one of AI’s advantages compared with traditional machine-learning models, which are “very black-box driven,” Lorenz said. “So, using [AI] for explainability helps satisfy several different areas, not least of which are some of these regulatory requirements,” he said. ‘Every bank a fintech’ Scott Weller , chief technology officer at EnFi , an agentic AI provider for commercial lending, told FinAi News that he’s eager for the “hybrid institutions” that will emerge during the AI revolution. “I think every bank is going to become a fintech and it's going to be very AI-powered,” he said. “I’m looking forward to these fusion moments where new business models emerge powered by AI.” Optimizing how AI systems communicate with each other will be key to executing these business models, Weller said. “I'm excited most about the new networks that emerge between humans and AI agents and how we facilitate getting work done using that paradigm,” he said. Register here for the FinAi Lending Summit, set for Oct. 7-8 in Las Vegas .

5 AI advancements banks, fintechs are excited about

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5 AI advancements banks, fintechs are excited about

Use of AI in financial services doubled since 2024

Finastra’s OperatorAssist saves 1.5 hours a day per payment operator

FIs wary of OpenClaw security risks

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