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Generative AI has ample applications within financial services over a three-year horizon, with payments the most promising sector because of its breadth of potential use cases.

Streaming, super apps, and gaming. What鈥檚 notable in retail ecommerce.

The news: Consumers鈥� trust in banks鈥攊ncluding regional banks鈥攈as improved since the March 2023 banking crisis. And 50% of regional banking customers feel confident in their bank鈥檚 soundness, up from 39% in 2023. That鈥檚 according to a survey of 16,000 US consumers RepTrak conducted in May and June 2024. How we got here: Consumer trust plummeted after multiple banks failed last year.

The marketing factor: To build multi-product relationships in 2024, RBC鈥檚 and Scotiabank鈥檚 mobile apps will need to allow their customers to accomplish everything they need to鈥攁ll in one place. That means including products across all banking businesses, which also makes it easier for banks to cross-market their products.

Cash App is looking to bring them on board with a wide and growing suite of banking-adjacent services, including debit cards and savings accounts. But it may struggle to keep pace with the spending growth driven by higher-income users, who are more inclined to use other apps.

Adoption of digital wallets is approaching critical mass, but they won鈥檛 replace physical wallets anytime soon. However, a super app may be on the horizon, especially if companies can crack the ability to integrate payments with shopping services.

Previously we鈥檝e covered Gen Zers鈥� interest in fintechs鈥� apps, as well as their preference for aggregated views of their financial health within these apps. Gen Zers also want guidance. Banking providers that offer financial fitness tools could counteract the money dysmorphia and financial stressors that heavily impact this generation.

On today's podcast episode, we discuss the capabilities (good and bad) of OpenAI's new GPT-4o, what the disbanding of the companies "superalignment" team means, and whether we're witnessing the birth of the next super app. Tune in to the discussion with our analysts Jacob Bourne and Gadjo Sevilla.

Cash App, Venmo, and Zelle account for the majority of US peer-to-peer (P2P) payment volume, which is expected to reach $1.402 trillion this year, according to Insider Intelligence forecasts. Twitter will need to convince users that its payment service offers more value than competitors.

ChatGPT is the talk of 2023. In the banking industry, generative AI technology has promising use cases in marketing and customer service, and it has the potential to make machine learning applications more accurate and efficient.

Gen Zers鈥� influence on banking will begin to emerge as more than 4 million of them per year become mobile bankers through 2026. Banks must adapt to provide the services these digital natives demand.

SMBs have long used P2P apps to accept digital payments without card acceptance infrastructure. P2P providers have been formalizing SMB use by introducing business profiles and tax offerings鈥攅specially given new IRS reporting rules鈥攖o drive engagement and spending among SMB users. Banking-adjacent offerings can tighten consumer relationships.

What this means for banking competitors: While these 补辫辫蝉鈥� success varies, some, like Alinia App, have amassed hundreds of thousands of users. And as women continue to gain financial power, their business will become increasingly important to FIs.

And young consumers in particular read reviews, watch YouTube videos, and want to test-drive apps before committing to financial products. Banks that offer AI-driven advisory tools should consider allowing users to test-drive or have limited access to those tools while encouraging them to become customers for the full version.

These communications could occur over a mobile app, through highly personalized marketing emails, or in pamphlets handed to customers during branch visits. Ideally, these tips also link to tools and resources that help Gen X plan and save better.

The app鈥檚 expanding product suite could appeal to this group. But they won鈥檛 be an easy sell, and Block risks becoming over-reliant on Cash App.

Early adopters dip a toe into Twitter rival Threads: Meta has some compliance functionality to address before highly regulated financial services firms adopt its new text-based conversational app.

Our US Banking Digital Trust Benchmark found Gen Zers place trust in Apple for banking services on par with their primary financial institution鈥�12.9 percentage points more than the total population does.