An estimated $72 trillion is set to transfer to younger generations in the coming years as part of the Great Wealth Transfer — including ownership of many small businesses. As longtime business owners retire and more companies are led by millennials, your financial institution has a fresh opportunity to meet the technology expectations of this digitally savvy generation with seamless, intelligent digital banking experiences — and breakthroughs in AI are making it easier than ever before to meet these expectations.
New research from leading analyst firm Datos Insights digs into the opportunity to win market share among millennial businesses. According to the survey, 80% of millennial-run small businesses feel comfortable or very comfortable integrating more AI into their banking relationships. For banks and credit unions, staying ahead of these trends isn’t just smart, it’s essential for building long-term loyalty and growth.
The Problems AI Can Help Business Owners Solve
Millennials value AI’s potential to streamline their operations, enhance customer experiences, automate routine tasks, and help them make data-driven decisions. As a result, they expect their primary financial institutions to invest in AI-driven technologies, particularly in automated payments, reporting capabilities, and virtual assistants.
Is It the Right Moment for AI Investment?
The banking landscape is shifting, and small business expectations are changing right along with it. Young entrepreneurs are looking for faster, simpler, and more intuitive digital experiences from their financial institutions. In fact, 37% of millennial-led small businesses would consider switching to a provider that offers a more modern, tech-driven experience, according to the Datos Insights survey.
With the right AI tools in place, delivering that kind of experience becomes much more achievable. AI helps streamline everyday tasks, personalize interactions, and make banking feel faster and more intuitive. Whether it’s initiating transactions more quickly or finding the right information without friction, AI helps small business owners save time and stay focused on what matters most.
These expectations are reflected in what small businesses say they want most from their financial institutions. As shown below, improvements in ease of use, faster onboarding, and better digital support are some of the top areas where AI can make a meaningful impact.
Using AI to Combat Fraud
AI can also be a powerful tool in the fight against fraud, helping to identify anomalies in login patterns and payment behavior. Fraud detection and prevention is a multi-player sport that includes your financial institution, technology partners, and your business owners. Millennials are keenly aware of the threat of fraud and look to their financial institution to use every tool in their toolbox to help protect them.
Position Your Institution for the Future
By showcasing your digital banking platform’s AI-driven capabilities to younger business owners, you position your institution as an industry leader ready to support business growth with innovative solutions. Furthermore, by future-proofing your platform, you help to maintain a competitive edge.
CSI is planning for the future by incorporating AI technologies into our personalized digital banking solutions to create meaningful benefits for both your institution and account holders. Contact us to learn more about how AI can strengthen your operations and enhance the experience you deliver.
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Leslie Chaffer, Vice President of Product Management
Leslie Chaffer is Vice President of Product Management at CSI, focused on building market-leading capabilities for small businesses that are easy to understand and simple to use. She has been an Accredited ACH Professional (AAP) for more than 20 years and uses that expertise to drive excellence in the products and services she manages. Leslie holds a Master’s degree from Tulane University and has more than 24 years’ experience in digital banking and financial services.