Conversational banking has reached an inflection point. What began as basic chatbots designed to deflect contact center volume is evolving into a transformative model for customer engagement — powered by rapid advances in AI, rising customer expectations, and banks’ urgent need to streamline operations. As this shift accelerates, banks must rethink not only how they engage customers but also the technology foundations that will enable more intelligent and context-aware interactions in the years ahead.

This Is A Paradigm Shift, Not A UX Upgrade

Conversational banking isn’t simply another interface layered onto existing channels. It represents a fundamental shift in how customers access banking services — using natural language to ask questions, complete tasks, or receive guidance. Large language models (LLMs), generative AI, and emerging agentic AI capabilities are redefining what these interactions look like. Where early tools were rules‑based and reactive, the next generation will be contextual, proactive, and capable of completing tasks autonomously.

Momentum Is Building, But Expectations Are Rising Faster

Consumer adoption is accelerating as people grow increasingly comfortable using conversational interfaces such as ChatGPT, Gemini, or Perplexity in other parts of their daily lives. A recent Forrester pulse survey shows that a growing share of consumers now turn to AI assistants — whether from their bank or a third party — to ask financial questions, research financial products, or receive financial advice. Our data also shows that when these tools perform well, satisfaction is high and customers readily embrace them as part of their financial decision-making journey.

Meanwhile, trust remains a crucial variable. While familiarity with AI tools improves confidence, many customers are still reluctant to rely on them for sensitive tasks or high-stakes financial decisions. The next wave of adoption will depend on banks’ ability to close gaps in accuracy, escalation pathways, and perceived risk — demonstrating not just that AI can answer questions but that it can reliably understand intent, know its limits, and seamlessly hand off to a human when the situation demands it. Only then will customers feel secure enough to entrust AI with more meaningful aspects of their financial lives.

Leading Banks Are Scaling AI To Reinvent Engagement

Banks increasingly view conversational banking as a strategic priority. Investment is accelerating as leaders recognize the competitive edge that natural‑language, personalized, always‑on engagement can deliver. Our latest Digital Experience Review™ shows that AI assistants are becoming central to digital service strategies, with banks like Bank of America, BBVA, and PKO Bank Polski using them to elevate customer experience.

And the most advanced deployments are moving well beyond customer service. AI is increasingly powering conversational journeys that span onboarding, account management, financial guidance, and fraud support.

Three Strategic Scenarios Will Shape The Future

As banking enters the era of agentic commerce, the strategic question facing every bank is no longer just how to deploy conversational engagement but where these interactions will take place and who will control the customer relationship. AI agents are emerging as a new distribution layer for financial services — mediating discovery, advice, and transactions. Banks must decide their role in this ecosystem before it matures. Our research identifies three strategic scenarios:

  1. Bank‑owned AI assistants embedded in proprietary channels
  2. Bank‑led engagement via third‑party messaging platforms
  3. Interactions driven by third‑party AI assistants

Each scenario presents its own trade‑offs in control, data access, customer proximity, and competitive positioning. As third‑party AI agents become more capable, banks face an increasing risk of becoming invisible in the customer journey and losing influence over the relationship. The winners will be those that make intentional choices about where they play — and build the capabilities, integrations, and agent‑ready services needed to thrive in that role.

If you’re a Forrester client, you can dive deeper by reading the full report, The State Of Conversational Banking, 2026, which explores adoption trends, key use cases, and the innovations shaping the conversational banking landscape. Forrester clients can also schedule an inquiry or guidance session with me to explore this topic further and discuss implications for their own strategy.

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