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Generative AI is becoming a strategic growth factor in the financial sector
January 29, 2026
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5min read
Pascal Sollberger
Co-Founder & Marketing Expert, hypt
Why changing customer expectations, empathy, and governance are now decisive for competitiveness
In banks and insurance companies, generative artificial intelligence is evolving from an innovative topic into a key competitive driver. After years of incremental digitization, 2025 marks a turning point: customer expectations are changing faster than existing systems can adapt, new market entrants are setting higher standards for customer interaction, and regulatory frameworks such as the EU AI Act and DORA are simultaneously tightening requirements around transparency, traceability, and controllability. The pressure for change is coming directly from the market.
Content
Speed alone loses importance, empathy gains
Fast response times have long been regarded as the benchmark for digital service quality. Today, they are no longer sufficient. According to Gartner Banking Trends, 83 percent of customers switch providers after repeatedly experiencing waiting times of more than 60 seconds in digital channels. At the same time, McKinsey’s The State of AI report shows that 69 percent of customers rate empathy as the most important factor in the service experience - ranking it ahead of price or product.
As a result, the underlying value proposition has fundamentally shifted. Customers now expect interactions that understand context, categorize situations, and respond appropriately. Competitive advantage is increasingly driven by the quality and relevance of the experience, rather than by product logic and process speed alone.
From efficiency gains to sustainable customer loyalty
Generative AI goes beyond traditional automation. It is capable of creating, explaining, prioritizing, and dialogically adapting content. The greatest leverage lies at the customer interface, for example in customer service, advisory processes, claims management, or personalized communication.
The economic value stems less from cost reduction and more from stronger customer loyalty, higher-quality interactions, and increased customer lifetime value. Generative AI is therefore becoming a strategic tool for differentiation in the market.
Governance is becoming a prerequisite for scaling
As the performance of AI increases, so does responsibility. Regulatory frameworks such as the EU AI Act and DORA require transparency, traceability, and human oversight. Analyses by FINMA, McKinsey, and Deloitte consistently show that institutions that establish responsible AI and governance structures early are able to scale faster while building trust with both customers and regulators.
Governance therefore does not act as a brake on innovation; rather, it is a prerequisite for sustainable value creation and regulatory-secure scaling.
Long story short
Generative AI is no longer a future concern. By 2026, the transition from isolated pilots to structural integration within organizations will be underway. Institutions that deploy generative AI across clearly prioritized use cases, measurable KPIs, and an integrated operating model will remain competitive. Generative AI is thus becoming the operating system for modern customer relationships and a decisive factor for relevance in the digital financial market.
Further information:
The whitepaper Generative AI in the banking and insurance industry 2026 — customer proximity redefined summarizes market analyses, figures and international studies and is available here.
