The Race for AI Differentiation in Banking Is Accelerating

The Race for AI Differentiation in Banking Is Accelerating

A generational shift is rewriting the rules of retail banking, and most institutions are moving too slowly to keep up.

By 2030, Millennials and Gen Z will control $41 trillion in inherited and earned wealth. By 2035, Gen Z will represent 43% of retail banking revenue, up from just 32% in 2023. The customers who will define your bank's future are arriving now. The only question is: Will they choose you?

The loyalty you assume you have

As our 2026 Consumer Banking Report demonstrates, older generations are likely to stay put. Younger ones won't. Our research shows that 34% of Gen Z and Millennials would consider switching banks in the next 12 months, more than triple the rate of Boomers. More concerning, 53% of these younger consumers now view the idea of "one main bank" as a thing of the past.

Driving that restlessness is a sense that their bank is more like a utility that doesn’t add value. Only 27% of consumers view their bank as a “valued partner,” and 47% see it as nothing more than a “useful resource.” That gap is the heart of the problem. 

Your customers are ready for AI

The encouraging news: Younger customers aren't fleeing banking. They're searching for something better. 

That appetite is real and measurable. Some 61% of Gen Z and 52% of Millennials noted they would pay for premium services, including features like personalised financial guidance, representing a large, untapped source of revenue for banks which AI could quickly unlock. Case in point, 53% of Gen Z would pay for hybrid AI-and-human advisory models. Meanwhile, 45% feel their bank isn't doing enough to improve their financial literacy, and 58% would welcome AI to help close that gap. It would be a major failure to not deliver it while the crucial window to win them over remains open.

Read the full article here.

Download EPAM’s 2026 Consumer Banking Report to explore more detailed insights:  www.epam.com/insights/research/epams-2026-consumer-banking-report