The news: A common assumption in financial services is that fintechs are leading the AI race and can help banks and credit unions rapidly close innovation gaps. However, PYMNTS Intelligence data shows that fintechs are only marginally ahead of credit unions in customer-facing AI capabilities—and in some areas, they're actually behind.

Zoom in: In some cases, credit unions are approaching or outperforming fintechs in AI-enabled services. 

• 32% of fintechs currently offer AI chat support, just a 7 percentage-point lead over 25% of credit unions.
• 16% of fintechs offer AI-powered financial advice, essentially identical to credit unions at 17%. 
• 12% of fintechs offer AI-powered payments and purchases, trailing 16% of credit unions.

Looking ahead, 28% of fintechs still have no plans to offer AI financial advice, and 47% have no plans to offer AI-powered payments and purchases. 

Why this matters: The PYMNTS report's findings illustrate that despite their reputation as technology innovators, fintechs have not yet established a meaningful lead in customer-facing AI capabilities. 

Many fintechs may be intentionally prioritizing AI applications with clearer business value—such as fraud detection, underwriting, compliance, risk management, and operational efficiency—rather than chatbots or conversational assistants. Note that relatively low adoption rates for AI chat support, financial advice, and payments may reflect strategic priorities rather than technological limitations.

Implications for banks: It’s important for financial institutions to understand that customer-facing AI may actually increase the importance of customer service in banking. According to EMARKETER’s “US Mobile Banking Emerging Features” benchmark, 87% of consumers value the option to immediately connect with a live agent from an AI-powered chatbot. 

Winning at AI may be more about optimizing the handoff between AI and humans and less about maximizing automation. Institutions that strike that balance stand to improve efficiency while preserving consumer trust.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.