Banks risk losing up to $170 billion in profits due to consumers increasingly utilizing AI to optimize their finances, according to a McKinsey report. The shift towards AI-driven financial decision-making could significantly impact revenue from low-interest accounts unless banks adapt their services. While initial AI implementation may reduce operating costs by 15-20%, these savings are expected to diminish over time as competition increases.

Fintech companies like Robinhood, Chime, and Cash App are increasingly becoming primary financial institutions (PFIs) for consumers, challenging traditional banks. With superior digital experiences, innovative features, and a focus on user-centered design, these fintechs are reshaping consumer expectations and capturing a significant share of new checking accounts.