Neobanks Embrace AI for Customer Services

Neobanks Embrace AI for Customer Services

Maria Santos
2 min read

Neobanks in Europe cautiously embracing Generative AI

Europe's major neobanks have been approaching the integration of Generative AI into consumer products cautiously, primarily due to concerns about the reliability of AI chatbots providing unpredictable advice. However, amidst this caution, some banks are beginning to explore the potential benefits of AI in their services.

Klarna, for instance, has introduced an AI assistant capable of handling tasks equivalent to 700 customer service agents, offering advice on spending limits and payment schedules, demonstrating optimism about the possibilities AI presents.

Similarly, Dutch neobank Bunq and Denmark’s Lunar have also launched AI-powered financial assistants aimed at analyzing spending habits, indicating an industry-wide deliberation on the potential of AI in enhancing user experiences and financial services.

Despite these advancements, there remains a reserved approach towards providing investment advice through AI, with Lunar's CTO, Kåre Kjelstrøm, emphasizing the need for accuracy before implementing such features.

There has been a simultaneous advocate for AI applications in the B2B sector, with Yanno Capital's investment in AI startup Grasp, illuminating a trend of channeling AI towards streamlining data for investment bankers, considered to carry lower risks compared to consumer-facing AI.

Key Takeaways

  • Europe's neobanks initially avoided consumer-facing Generative AI, instead focusing on internal processes like fraud prevention.
  • The introduction of AI-powered financial assistants by Klarna, Bunq, and Lunar signals an industry shift towards embracing AI technology.
  • Despite advancements, there is cautiousness in providing investment advice through AI, with a need for accuracy highlighted by industry experts.
  • B2B sectors are seen as safer grounds for AI applications, as evidenced by Yanno Capital's investment in AI startup Grasp.


Europe's neobanks are cautiously integrating Generative AI, focusing on enhancing customer service and spending analysis rather than investment advice. This cautious approach reflects the industry's concerns regarding the potential inaccuracies of AI in the realm of financial guidance. Although the short-term benefits are improving operational efficiency and enhancing customer experience, the long-term implications have the potential to redefine banking services, making them more personalized and efficient. It is evident that this hesitancy towards using AI for investment advice reflects broader industry apprehensions surrounding AI's readiness for critical financial decisions. This cautious adoption may slow innovation in consumer-facing AI but promotes safer, more reliable AI applications within the B2B sector.

Did You Know?

  • Generative AI: This subset of artificial intelligence is dedicated to creating new content, such as text, images, or other media, which is indistinguishable from content created by humans. It utilizes machine learning models trained on extensive datasets to generate fresh, original content based on the patterns it has learned.
  • Neobanks: These are digital-only banks that operate exclusively online, without traditional physical branch networks. They typically offer services through mobile apps and websites, often targeting tech-savvy customers with innovative features and lower fees compared to traditional banks.
  • B2B AI applications: These refer to business-to-business applications of artificial intelligence, which streamline operations, enhance decision-making, and improve efficiency in interactions between businesses. These applications primarily focus on data analysis, automation, and predictive analytics to support business processes and strategies.

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