FinTechs Lead AI Adoption in Mobile Money as Traditional Banks Lag Behind

FinTechs are significantly outpacing traditional financial institutions in deploying AI for customer-facing services, with the widest gap seen in mobile money, according to a new global study.

A comprehensive report from the Cambridge Centre for Alternative Finance reveals a stark divide in AI adoption strategies. Based on surveys of 203 FinTechs and 149 traditional banks across 151 countries, the data shows FinTechs are aggressively implementing AI where it directly interacts with customers and drives revenue.

The most dramatic disparity is in mobile money services. Here, 51% of FinTechs use AI, compared to just 26% of traditional institutions—a gap of 25 percentage points. This category includes AI-powered digital wallets, payments, and money transfers crucial for reaching underbanked populations.

This pattern extends across other customer-centric areas:

• AI-Powered Customer Support: Adopted by 82% of FinTechs versus 67% of traditional FIs.
• Payment Monitoring: A 20-point gap exists (62% for FinTechs vs. 41% for traditional FIs).
• Investment Research: FinTechs lead by another 20 points (69% vs. 49%).

Areas like cybersecurity show near parity, with both groups adopting AI at roughly 54% and 53%, likely due to universal regulatory and threat pressures. Traditional financial institutions hold marginal leads only in niche areas like professional advisory services (37% vs. 34%) and trading & portfolio intelligence (42% vs. 40%), leveraging their institutional depth.

The findings indicate two diverging strategies. FinTechs are pushing AI into the frontline of customer experience and product innovation, risking that traditional banks may fall behind in the most visible and competitive arenas of financial services.

Source: fintech.global