Aussies sceptical about AI banking, prefers human interaction - study

Publicis Sapient's Customer Banking Report 2024, based on a survey of over 5,000 Australians of varying demographics, reveals intriguing findings on the nation's perceptions and concerns regarding their banking experiences.

Surprisingly, despite advances in technology and the broad drive towards digitalisation in the banking sector, only 58% of Australians believe that Artificial Intelligence (AI) will enhance their banking service. A staggering 96% of those surveyed expressed misgivings about the use of AI in banking. Primary concerns were underpinned by a preference for human interaction (58%), fear over job losses (54%), and worries regarding data security and privacy (49%).

Reflecting on the results, Publicis Sapient's Head of Financial Services ANZ, Tales Sian Lopes, said, "Australian banking is at a crossroads, where the ability to adapt, innovate and deliver a seamless customer experience will determine the market leaders of tomorrow." Lopes emphasises the significance of emerging technologies, acknowledging both their potential and the public's reservations. He suggests that the industry faces a "key challenge in harnessing AI as an enabler to support the delivery of the personalised services that people are increasingly demanding whilst also showing customers the safe and ethical application of these fast-emerging technologies."

Interestingly, the survey highlighted that Australians link personalised banking services to physical branches instead of digital platforms. 74% of Australians expect personalised services and conversations from their banks, yet most associate these expectations with physical outlets rather than digital spaces.

In addition, the research suggests that significant portions of Australians remain sceptical about the positive impact of the Royal Commission recommendations issued in 2019. Despite major improvements within the industry, 56% of Australians perceive no changes in the functioning of their banks.

The report also revealed that a tremendous expectation has grown around banks' role concerning the cost of living. An overwhelming 92% of Australians anticipate banks to proactively support customers at risk of financial stress. Additionally, 79% of participants express the need for such proactive aid to tackle the cost-of-living crisis.

The topic of security and scam prevention also surfaced during the study. A vast majority (98%) of Australians expect banks to back them up in case they fall victim to a financial scam. Yet, 42% of those who had already been in such a circumstance were discontent with the assistance provided by their banks, citing slow response times among other criticisms.

An encouraging trend detected in the report is the shift towards socially responsible banking. About 75% of Australian respondents - particularly those under 45 years old - express support for banks committed to green initiatives and offering green products.

Looking forward, Lopes emphasises the importance for banks of further establishing accountability and trust while showcasing social benefit to sustain customer retention. "With the cost-of-living crisis impacting Australians' financial wellbeing, banks would do well to build a comprehensive toolkit of financial wellbeing intervention techniques," he suggests. Furthermore, he notes that younger Australians' discernment towards social responsibility implies that banks should be considering sustainable finance for long-term growth.