Generative AI in Financial Services

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Can Generative AI Improve Personal Finance?

Generative AI tools in financial services are rapidly gaining ground. However, their effectiveness still leaves much to be desired. A recent experiment conducted by Reece Rogers for Wired highlights the limitations of AI-powered personal finance management (PFM) apps when trying to help users achieve their financial goals. What does this mean for banks in Spain and Europe? A unique opportunity to stand out.

The Case of Cleo and Bright: Ineffective Advice and a Focus on Sales

AI applications in financial services, such as Cleo and Bright, promise to revolutionize these types of tasks, but the results have been somewhat disappointing for many users. According to Rogers, these tools tend to focus more on selling additional services—such as cash advances or high-interest loans—than on providing useful advice or effective plans for improving personal finances. This breeds mistrust among users, particularly among younger and financially vulnerable individuals.

The European Landscape: Growing Demand for Effective PFM Tools

In Europe, consumers are looking for financial tools that offer transparency and real solutions. A study in the United Kingdom revealed that 57% of bank customers want their bank to provide them with a clearer picture of their financial situation, and 31% are willing to switch banks if digital tools are not improved. This data reflects a trend that is also spreading in Spain, where the digitization of financial services is a strategic priority for banking institutions.

What can banks do to take the lead?

Banks currently have a unique opportunity to position themselves as leaders in the field of PFM tools. What could they do?

1. Tailoring Solutions with AI: Using artificial intelligence in an ethical and responsible manner to provide clear, practical financial advice tailored to each client.

2. Emphasizing transparency: Ensuring that users have access to clear information about their financial situation, with no hidden fees or surprises.

3. Investing in usability and user experience: An easy-to-use tool can make all the difference.

In addition, banks can learn from the mistakes of apps like Cleo and Bright to avoid an excessive focus on sales and instead focus on building trusting relationships with their customers.

At MIO One, we understand that innovation and technology are key to connecting with modern consumers. From developing customized digital strategies to leveraging data and advanced technology, we offer solutions to help any company or financial institution improve its PFM tools.

The PFM tools of the future must not only be functional, but also capable of building trust and guiding users toward smarter financial decisions. Generative AI has the potential to make a real difference, provided it is implemented with a customer-centric approach.

Sources:

• Rogers, Reece. “When AI Personal Finance Apps Miss the Mark.” Wired, 2025.

• Study on Banking Consumers in the United Kingdom, 2024.

• EMARKETER Briefings, 2025.

Communications Department