Virtual Assistants: Banks’ Secret Weapon to Safeguard Customer Relationships from AI

In a financial landscape constantly evolving, consumers increasingly seek reliable advice and guidance. Recent research from J.D. Power highlights a crucial dichotomy in the banking sector:

• The Positive Trend: When banks successfully provide direction and support, it significantly boosts overall customer satisfaction, contributing to a more positive perception of the institution.
• The Challenging Reality: Despite a strong demand for financial advice, J.D. Power’s 2025 U.S. National Banking Satisfaction Study reveals that a mere 27% of consumers currently receive this vital guidance from their banks.

The study also uncovers areas where existing advice mechanisms fall short and, crucially, identifies a powerful solution: virtual assistants. This revelation comes as a growing number of consumers, particularly those under 40, are turning to general AI tools like ChatGPT for their financial queries, casting a shadow over traditional banking relationships.

Key Banking Trends in Focus

The 2025 study reveals several noteworthy trends:

• For the third consecutive year, customer satisfaction with the nation’s nine largest retail banks saw an increase, rising by eight points year-over-year to a total of 666 out of 1,000.
• This satisfaction surge was primarily driven by consumers aged 64 and younger, who showed a 12-point increase, while satisfaction among older demographics remained flat.
• Banks leveraging virtual assistants gain a significant advantage in satisfaction rankings, although these tools are not yet a sole guarantee for top performance.

Understanding the Nuances of Guidance and Advice

According to Paul McAdam, senior director of banking and payments intelligence at J.D. Power, many consumers may simply be unaware that their banks offer advice. Expanding the types of assistance available could be key.

“We recommend to banks that they should be seeking to provide more advice, and not just on big life events, investments and retirement,” McAdam suggests. He points out that guidance on practical matters like avoiding fees or utilizing mobile apps is often met with very favorable consumer responses.

J.D. Power distinguishes between “guidance” and “advice”:

• Guidance: This involves information that helps customers effectively use and benefit from a bank’s services, often paving the way for opportunities to offer more specific advice.
• Advice: Defined as more specific and personalized, advice helps customers choose or use the most appropriate financial services option tailored to their unique circumstances, needs, and goals.

The study identified the top types of guidance and advice consumers seek:

• Ways to use banking products, services, or technology: 21%
• Investment-related advice: 13%
• Quick tips to improve financial situations: 8%
• Borrowing and credit-related advice: 6%
• Retirement-related advice: 6%
• Ways to pay bills on time: 6%
• Ways to reduce bank fees: 6%
• Saving for a goal or large purchase: 5%

Addressing Core Consumer Financial Concerns

J.D. Power’s research delved into two critical areas where consumers seek banking support:

Investments, Wealth Management, and Retirement Planning

Many consumers reported low awareness of their banks’ offerings in these areas. This could stem from larger institutions often targeting such advice exclusively toward affluent clients. Key needs identified include long-term financial planning, generational wealth transfer, and retirement strategies. While some customers appreciate the expertise of advisors, others express dissatisfaction due to poor availability, limited knowledge, or inconsistent guidance, leading to eroded trust. Negative sentiment also arises from perceived poor returns on bank investment products.

Fraud Response and Prevention

A significant finding indicates that a bank’s reputation can be made or broken during moments of fraud response. The clarity of explanations, the quality of guidance, and the speed of remediation are crucial in building or losing consumer trust. Proactive guidance on how to prevent future fraud also earns banks valuable points with customers.

Virtual Assistants Drive Satisfaction, Yet Challenges Remain

While overall national bank satisfaction has improved due to advice and guidance metrics over the past three years, a paradox emerges. Many large banks are investing in expanding and optimizing their physical branch networks. However, satisfaction with both branch and call center staff performance has declined over the last five years. Despite this, branches remain the initial point of contact for 28% of consumers seeking advice.

Enter virtual assistants. Six of the surveyed banks—including Bank of America’s Erica, U.S. Bank’s Smart Assistant, Capital One’s Eno, Chase Digital Assistant, Wells Fargo’s Fargo, and Truist Assist—now offer these tools. They provide in-the-moment guidance and some sophisticated advice.

J.D. Power’s ongoing tracking shows a notable trend: virtual assistant usage has expanded beyond early adopters into the “early majority” consumer segment. Nearly one in five customers at banks offering virtual assistants now use them, up from 13% in 2021. Critically, overall satisfaction among virtual assistant users is 35 points higher (698 total) compared to non-users (663 total), a statistically significant difference that also correlates with improved net promoter scores.

Almost a third of users leverage virtual assistants for account information, avoiding human contact centers, and 26% use them to resolve account problems. Bank of America’s Erica, for instance, proactively engages customers in 60% of interactions, with nearly all queries resolving without human intervention. The bank has even adapted Erica to assist employees in delivering faster customer support.

The Rising Tide of General AI Competition

Adding to the landscape, separate J.D. Power research from mid-2025 found that 51% of respondents use general AI tools to find information and answer questions, with usage notably higher among consumers under 40. The leading category for daily AI usage is searches for banking and financial information, accounting for 13% of users.

Consumers turn to AI for a diverse range of financial queries:

• Savings strategies: 45%
• Credit scores and credit cards: 41%
• Investing and stock market advice: 36%
• Budgeting and managing expenses: 36%
• General financial education: 36%
• Cryptocurrency: 29%
• Taxes and tax filing: 29%
• Retirement planning: 22%
• Loans and mortgages: 20%

While a small fraction (13%) completely trust AI-generated answers, the majority either sometimes (40%) or often (38%) verify the information, with 7% using AI as merely a starting point. As consumers become more comfortable with AI, banks will likely need to enhance their role in providing both human and digital advice to meet evolving expectations and protect valuable customer relationships.

Source: thefinancialbrand.com