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TPA: AI banking tools failing vulnerable customers at over 3x the rate of other consumers

Tuesday, June 23, 2026 — 15:54:49 (UTC)

AI Banking Tools Failing Vulnerable Customers at More Than Three Times the Rate of Other Consumers, reveals The Payments Association research

LONDON 23 June 2026 – More than half of UK adults may not be benefiting equally from the financial sector's growing use of digital and AI-enabled tools, according to new research published today by The Payments Association, a trade group for the payments sector.

How AI-powered Banking Tools are Failing Vulnerable Customers draws on a recent Opinium survey of 2,000 UK adults. It reveals that 59 per cent of UK adults currently meet the Financial Conduct Authority’s definition of vulnerability, meaning these consumers now represent the majority of the retail banking market.

The research found that 17 per cent of vulnerable consumers had been unable to complete a banking or payment task because a digital or AI-enabled tool did not work for them, compared with just 5 per cent of non-vulnerable consumers.

The report was developed by the association's Diversity and Inclusion Working Group and shows that while vulnerable customers are among the most active adopters of digital and AI-enabled banking tools, they face disproportionately high failure rates when trying to complete routine financial tasks.

Only five per cent of non-vulnerable adults report being unable to complete a banking or payment task because a digital or AI-enabled tool did not work for them. However, that figure rises to 10 per cent for individuals with one vulnerability driver, jumping sharply to 42 per cent for those experiencing four or more drivers. This complexity penalty directly impacts customer sentiment, leaving just 51 per cent of vulnerable adults feeling that their provider understands and meets their needs, compared to 61 per cent of non-vulnerable consumers.

The sharpest drop occurs among individuals with limited financial literacy or digital skills. Only 32 per cent of this group feel their banking needs are well met, representing a 28-percentage-point gap compared to their non-vulnerable peers.

Emma Banymandhub, CEO of The Payments Association, said: "AI and automation hold enormous potential to improve financial services, but our research shows that vulnerable consumers are often experiencing worse outcomes despite being enthusiastic users of these tools. With nearly 60 per cent of UK adults meeting the FCA’s definition of vulnerability, inclusive design is a commercial and regulatory necessity.”

“Under the FCA's Consumer Duty, banks and payment providers have a clear mandate to ensure these tools work for everyone. We cannot allow technology to create a two-tier financial system. The industry must act now to bridge the gap between digital engagement and successful user outcomes by ensuring a human fallback is always within reach."

The research challenges the industry assumption that older demographics face the most frustration with modern interfaces. In fact, consumers aged 18 to 34 reported the highest task-failure rate at 18 per cent, a figure that drops steadily with age to just 6 per cent for those over 65. Because younger consumers use these tools most frequently, they are more likely to encounter situations where digital journeys fail to meet their needs.

ENDS

About The Payments Association 

The Payments Association is a community for all companies in payments, whatever their size, capability, location or regulatory status. Its purpose is to empower the payments sector, so that the connections, collaboration and learning shape an industry that works for all. It works closely with industry stakeholders such as the Bank of England, the FCA, HM Treasury, the PSR, Pay.UK, UK Finance and Innovate Finance.   Through its comprehensive programme of activities and with guidance from an independent Advisory Board of leading payments experts, The Payments Association facilitates the connections that join the ecosystem together and make it stronger. These activities include a programme of digital and face-to-face events, including the annual PAY360 and FC360 conferences, The PAY360 Awards, PA@TheCity, CEO roundtables, workshops, webinars, and training activities.     The Payments Association also runs eight stakeholder working groups covering Cross-border, Digital Currencies, ESG, Financial Crime, Financial Inclusion, Merchant Payments, Open Banking and Regulatory. The volunteers in these groups represent the industry and collaborate to ensure their driving issues are addressed effectively. TPA also publishes industry research and insights through Payments Intelligence, including reports, whitepapers, articles, podcasts and video interviews. 

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Source: Company press release.

Categories: Reports and research