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How AI Can Help Banks and Credit Unions Win Over Gen Z and Millennials
Fonta Gilliam
April 14, 2025
As someone who’s spent years building financial tools for digital-first generations, I can confidently say this: if you’re a bank or credit union still thinking of AI as a “nice-to-have,” you’re already behind.
Gen Z and Millennials expect personalized, on-demand experiences. They’re more likely to talk to Siri than a bank teller. And if your financial institution isn’t using AI to make money management feel as fast, friendly, and intuitive as their favorite apps, someone else will.
But here’s the opportunity: banks and credit unions still have something young people want—trust.
Surveys show most Gen Zers would still prefer to store their money with a traditional institution over a fintech app. They just want it delivered with the seamless experience they’ve come to expect from tech platforms. That’s where AI comes in.
This week’s Deep Dive unpacks what you need to do to start implementing AI today. Not theories, not studies, but practical steps to launch AI features safely and successfully.
In this issue
ICYMI
Why Gen Z & Millennials trust their finances to Big Tech over banks – Algopear
👀 Gen Z and Millennials are increasingly favoring big brands like Apple, Google, and Amazon over traditional banks for financial services. These tech giants offer seamless digital experiences, personalized financial tools, and align with the values of younger consumers, challenging traditional banks to innovate or risk losing relevance.
Unlocking growth for community banks: Attracting Millennials and Gen Z — FileInvite
💸 Community banks can capture the attention of younger consumers by offering personalized, digital-first experiences that combine the convenience of technology with the trust of local banking.
Six imperatives for credit unions to secure their future – BAI
🤷🏽♀️ Credit unions must embrace digital transformation, invest in AI, and highlight their commitment to social impact to connect with Millennials and Gen Z effectively.
How banks can attract Millennials seeking financial guidance – SBS
📱 Banks that provide AI-driven recommendations tailored to Millennials’ needs often gain loyalty, as this generation seeks personalized financial advice and tools to navigate their unique economic challenges.
The credit union playbook: 5 strategies to engage younger members – Pragma
📉 If your Gen Z outreach strategy is “make a flyer,” it’s time for an intervention. This article roasts the top reasons your credit union is flopping with young people — and it’s not because of “kids these days.” It’s YOU. Get your tech up, fix your UX, and for the love of Beyoncé, stop using stock photos of people high-fiving in suits.
DEEP DIVE
How AI Can Help Banks and Credit Unions Win Over Gen Z and Millennials
Millennials and Gen Z want tools that understand them, communicate like them, and anticipate their needs. AI can enable all three.
At its best, AI in banking makes the experience personal, fast, and helpful. Imagine a virtual assistant that not only answers questions 24/7, but says, “Hey, I noticed you have a big bill coming up—want help shifting money into savings?”
This is already happening.
Bank of America’s Erica has handled billions of customer interactions, providing personalized tips, reminders, and account insights.
RBC’s NOMI has helped users save over $1 billion by automating micro-savings.
Fintech apps like Cleo talk to users like a savvy friend, not a spreadsheet, and have built massive followings among Gen Z.
These aren’t gimmicks—they’re real, measurable improvements to customer experience that lead to loyalty, trust, and engagement.
The Power of Personalization
Today’s customers don’t just want to check their balance; they want advice. They want apps that learn their habits and help them improve. AI makes this possible.
Whether it’s helping users budget smarter, recommending personalized savings goals, or flagging unusual spending, AI can transform a static account into a dynamic coaching experience.
Platforms like Wellthi (my company) are taking this further by embedding AI-powered, social financial tools inside banking apps.
Think group savings challenges. AI that transforms financial content into social posts, and digital nudges that make financial wellness feel communal. That’s how we turn savings into something people want to do—because it’s tied to their goals, their community, and their culture.
What’s Working—and What’s Not
Banks that lead with clear customer benefits are seeing strong returns. Erica, NOMI, and Cleo didn’t just throw AI into an app—they built experiences around real user needs: convenience, understanding, and empowerment. As a result, they’ve seen massive usage and high satisfaction, especially among younger users.
But some efforts have flopped. Remember JPMorgan Chase’s “Finn”? A mobile app for Millennials that was shut down less than a year after launch. It didn’t fail because the tech was bad—it failed because it lacked clarity, community, and a strong user value proposition.
Others have stumbled by underdelivering on chatbot quality or making users feel trapped in automation without human help.
The lesson? AI can’t be a bolt-on. It must feel seamless, thoughtful, and responsive.
Getting Started: A Smart Game Plan
If you’re a bank or credit union wondering how to start, here’s my advice: Start small, but start now. Pick one pain point your younger customers face—like lack of budgeting tools, long wait times, or no savings guidance. Deploy AI to solve that problem simply and clearly. Consider partnerships with fintechs who already do this well. Companies like Wellthi, Cleo, or Personetics offer tools you can white-label or integrate. You don’t have to build everything from scratch. Pilot, test, and iterate. Gen Z customers appreciate innovation—but only if it works. Don’t be afraid to release a beta version and ask for feedback. Just make sure there’s a way to escalate to human support when needed. Train your staff, promote the features, and track impact. Celebrate small wins, and listen closely to user feedback. | 5 AI Features That Actually Drive Engagement
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Avoiding Pitfalls: Risk and Trust
AI is powerful, but it comes with responsibilities. Be transparent about how AI is used. Protect customer data like your brand depends on it—because it does. Test your models for bias. And most of all, keep humans in the loop for high-stakes decisions.
Look to none other than Apple for a sobering cautionary tale: In 2019, reports emerged that women were receiving significantly lower credit limits than men with similar financial profiles when applying for the Apple Card.
Although Apple’s algorithm did not explicitly use gender as an input, it likely relied on proxy variables correlated with gender, leading to biased outcomes. This situation highlighted the challenges of “black box” algorithms, where the decision-making process is opaque, making it difficult to identify and correct biases.
The lesson? The Apple Card debacle showed us what happens when AI outputs appear biased. The backlash was swift and damaging. Gen Z is paying attention to fairness, transparency, and ethics.
The Big Picture
This is more than a tech trend. This is a generational shift. The institutions that succeed in the next decade will be the ones who combine trust with innovation. AI lets you do both—if you lead with purpose, empathy, and action.
At Wellthi, we believe the future of finance is social, intelligent, and inclusive. AI is helping us bring that future to life by turning apps into communities, content into conversations, and banking into something that actually helps people live better.
So let’s stop thinking of AI as the future. It's now. And if you use it right, it’s how you’ll win the next generation of customers—for life.
— Fonta
Meet the Future of Finance!
Wellthi Technologies—backed by Mastercard & Northwestern Mutual Future Ventures—offers a turnkey Virtual Advisor Technology app tailored for lowering branch costs, driving low-cost deposits, and maximizing billion dollar opportunities with under 45 consumers. Engage Millennials & Gen Z with social finance features that drive loyalty and deposits. Our platform transforms banking into a community experience with goal sharing, crowdfunding, and peer support—helping credit unions stay relevant, digital-first, and growth-ready. Seamlessly onboard new members, boost engagement, and unlock new revenue streams—all without costly tech investments.
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