While three-quarters of young people have used artificial intelligence (AI) to manage their money, older generations are also confident using tech to make financial decisions.
The findings of research from Lloyds Bank amplify the importance of understanding financial services when using fintech products.
The survey, by the banking giant, revealed that 76% of 18 to 24-year-olds have used AI for personal finance despite being the least confident when making financial decisions using digital tools. It found that 64% of the age group that use digital tools were confident making financial decisions.
In comparison, 85% of people between 65 and 74 years old who use digital tools when making financial decisions were confident in doing so. “The findings challenge a common assumption that younger people have the advantage when it comes to managing money online,” Lloyds said.
Older people combine their experience with technology, such as AI, to support financial management. According to the research findings, 47% of 55 to 64-year-olds and 35% of 65 to 74-year-olds have used AI for personal finance.
Jas Singh, CEO of consumer relationships at Lloyds, said: “Younger people have grown up with technology, which is a great start for making the most of digital tools to manage money, but confidence with money is something that’s built over time – and it’s the combination of the right tools and knowledge that is the real sweet spot for financial empowerment.
“Younger people bring digital confidence and curiosity, while older generations bring experience and financial know-how,” he added. “There is a real opportunity for generations to learn from each other, while technology can play a positive role in helping more people feel in control of their finances.”
The use of technology in financial management changes through the generations. The Lloyds research found that two-thirds of 25 to 34-year-olds use AI for budgeting and planning, 28% of 35 to 44-year-olds use it for mortgage advice, and 57% of 55 to 64-year-olds sought the AI tools to compare insurance products.
The over-75-year-old group of people who use digital tools reported the highest level of positive outcomes, with a third reporting this.
But scammers are targeting increasing consumer confidence in tech-based financial tools.
A recent survey by TSB found that an average of £3,000 was lost by people as a result of financial investment fraud via social media platforms, according to a TSB survey. The warning came as more people use unregulated advice via tech platforms.
The findings also revealed that over half of people who followed financial advice from social media platforms lost an average of £700, with 56% of them losing money.
The 25-34 age group were most likely to act on financial advice on social media and to use AI for advice, according to the survey. Half of this group have done so in the past year, with 27% using it for advice on savings and 18% for investments.
It also found that around half of respondents (49%) said financial content on social media has even made them feel pressured to improve their finances, and 33% have considered changing their financial goals or career aspirations as a result.
