As digital transformation reshapes the global banking industry, mid-sized banks are emerging as agile leaders in adopting artificial intelligence to elevate customer engagement. Moving beyond traditional service models, these institutions are leveraging AI to deliver hyper-personalized experiences, streamline support, and respond to rising customer expectations. This list features the top 15 mid-sized banks at the forefront of redefining customer relationships through intelligent, data-driven banking in 2025.

The AI Imperative for Banking Customer Service

Adopting AI is a pivotal driver of competitiveness and customer satisfaction in banking. With rising customer expectations and operational challenges, banks must strategically invest in AI to stay relevant. Leading institutions are prioritizing:

• Personalized Engagement & Insights: Using AI to deliver tailored financial advice and product recommendations.
• Conversational AI & Chatbots: Leveraging AI-powered assistants to handle inquiries with speed and accuracy.
• Omnichannel Integration & Automation: Streamlining customer interactions across digital and physical touchpoints for seamless experiences.
• Customer-Centric Innovation: Enhancing loyalty and trust through hyper-personalized services, data-driven insights, and efficient query resolution with AI systems.

 

Banking AI Adoption Quadrant

The Banking Customer Service AI Adoption Quadrant categorizes banks based on their Scope of AI Deployment and Depth of AI Maturity, evaluating the breadth of AI applications across customer service channels and the sophistication of their AI systems. This structured assessment provides insights into their journey toward AI-driven customer service transformation, from initial implementations to fully integrated, mature AI ecosystems. The focus of this quadrant is on impact and results seen, highlighting tangible outcomes from AI adoption.

This quadrant evaluates banks across four key categories:

Market Leader

N26

N26 is a Market Leader in AI Adoption. Based in Berlin, N26 is a digital bank that is transforming banking experiences across Europe by integrating artificial intelligence into its customer service and engagement channels. The bank’s multilingual AI tools and conversational interfaces are setting new standards for digital support.

Key Executives: Valentin Stalf (Founder and Chief Executive Officer), Maximilian Tayenthal (Founder, Co-CEO and COO), Carina Kozole (Managing Director and Chief Risk Officer), Gino Cordt (Chief Technology Officer).

Key AI Initiatives

• Neon: AI Chatbot for Multilingual Support: N26’s AI-powered chatbot, Neon, handles 30% of routine inquiries (such as card issues) across five languages. It provides 24/7 assistance, allowing human agents to focus on more complex issues.

• Rasa-Powered Conversational AI: N26 uses Rasa, an advanced machine learning dialogue system, to manage complex customer conversations. This enhances the quality and depth of interactions, providing more personalized and accurate responses.

• Next Best Action Recommendations: AI supports N26’s customer service specialists by suggesting the most appropriate next steps during service interactions. This boosts efficiency and ensures better issue resolution.

Through the integration of smart assistants and conversational AI, N26 is offering multilingual, intuitive, and context-aware customer support, thereby improving the overall banking experience for its diverse, international customer base.

TSB Bank

TSB Bank is a Market Leader in AI Adoption. Based in the UK, TSB Bank has been actively integrating AI technologies to optimize customer engagement, personalization, and service efficiency. With a focus on innovation, TSB is setting new standards in customer experience and operational excellence.

Key Executives: Marc Armengol (Chief Executive Officer and Executive Director), Richard Lees (Chief Risk Officer), Adam Lishman (Chief Customer Officer), Cheryl McCuaig (Chief Information Officer).

Key AI Initiatives

• Adobe Experience Platform for Real-Time Personalization: TSB Bank adopted Adobe Experience Platform to provide personalized customer experiences, leading to an 11-fold increase in incremental revenue and a 300% rise in mobile loan sales. Additionally, 80% of customer interactions are now occurring via digital or mixed channels.

• AI-Powered Contact Center with Infosys: In collaboration with Infosys, TSB implemented an AI solution that analyzes customer call intent and sentiment. This innovation has improved customer satisfaction, reduced call handling time, and enhanced operational efficiency.

• Hyper-Personalization Strategy: TSB uses AI and machine learning to proactively identify key life events and provide personalized financial support, helping customers reach their financial goals.

TSB Bank’s strategic AI initiatives reflect its strong commitment to driving digital transformation and delivering exceptional, personalized banking experiences.

Impact Driver

LHV Bank

LHV Bank is an Impact Driver in AI Adoption. As a leading digital bank in Estonia, LHV Bank is using artificial intelligence to provide smarter, faster, and more personalized customer service. By strategically deploying AI across its operations, the bank is enhancing digital engagement and boosting operational efficiency.

Key Executives: Erki Kilu (Chief Executive Officer), Giorgos Ampavis (Chief Technology and Product Officer), Assad Kazi (Chief Risk Officer), Rob Neal (Chief Compliance Officer).

Key AI Initiatives

• Chatbot ‘Uku’ on Facebook Messenger: LHV Bank introduced a machine learning-based assistant, ‘Uku,’ to handle common inquiries such as ATM locations and transaction times. This has reduced the workload on support staff while improving response times for customers.

• Deployment of ChatGPT Enterprise: The bank implemented ChatGPT Enterprise across its operations, equipping staff with AI tools to enhance customer interactions and automate routine support tasks, improving efficiency and service quality.

• AI Integration Across Channels: LHV Bank has dedicated AI engineers and staff training programs to ensure seamless integration of AI technologies, improving consistency and personalization in service delivery.

LHV Bank’s use of AI in customer support and internal workflows highlights its commitment to building a digital-first, highly responsive banking experience in the Baltic region.

Banknter

Bankinter is an Impact Driver in AI Adoption. As a leading Spanish financial institution, Bankinter is harnessing artificial intelligence to personalize financial services and enhance digital customer interactions. The bank’s AI innovations are reshaping how customers experience and engage with banking services.

Key Executives: Gloria Ortiz (Chief Executive Officer).

Key AI Initiatives

• AI-Powered Bill Management: Bankinter offers a feature that allows customers to manage past bills through natural language queries, such as “Show last year’s electricity bills.” This intuitive AI-driven tool simplifies financial tasks, making them more user-friendly and accessible.

• Personalized Investment Fund Search: The bank uses AI to analyze investor profiles and behaviors, enabling it to recommend tailored investment funds. This personalization increases relevance and customer engagement with financial products.

• ChatGPT-Powered Internal AI Tools: Bankinter employs a proprietary version of ChatGPT to improve internal processes and enhance customer communication. This AI tool ensures faster, more accurate service, creating a future-ready support experience for clients.

Bankinter’s integration of conversational AI, personalized financial tools, and intelligent automation underscores its commitment to delivering a more engaging and tailored banking experience for its customers in Spain.

BS Brodnica

BS Brodnica is an Impact Driver in AI Adoption. As a cooperative bank in Poland, BS Brodnica has embraced AI to enhance customer engagement and personalize its banking services. With a strong focus on improving customer support and service efficiency, BS Brodnica has achieved significant milestones with its AI initiatives.

Key Executives: Alexander Mikołajczak (President of the Board), Grzegorz Głowacki (Board Member for IT and Innovation).

Key AI Initiatives

• Virtual Assistant ‘Piotr’: In partnership with TUATARA, BS Brodnica developed Piotr, an AI-powered virtual assistant utilizing IBM watsonx Assistant. Piotr provides 24/7 customer support, offering accurate responses and promoting additional services when appropriate.

• Integration with Bank’s Knowledge Base: Piotr is fully integrated with the bank’s knowledge base, enabling it to offer up-to-date information and personalized recommendations, further enhancing the customer experience.

• Performance Metrics: Since its implementation, Piotr has engaged in over 1,000 customer conversations, achieving a 90% accuracy rate in handling inquiries, demonstrating its effectiveness in improving customer interactions.

BS Brodnica’s focus on AI-driven customer service, particularly with Piotr, positions the bank as an innovative leader in personalized banking experiences.

Fast Mover

First Abu Dhabi Bank (FAB)

First Abu Dhabi Bank (FAB) is a Fast Mover in AI Adoption. As the UAE’s largest financial institution, FAB has been integrating cutting-edge AI technologies to enhance customer engagement, personalization, and operational efficiency. The bank is focused on leveraging AI to provide advanced banking solutions while maintaining its leadership in the region.

Key Executives: Hana Al Rostamani (Group Chief Executive Officer), Chris Jaques (Group Chief Risk Officer), Divyesh Vithlani (Group Chief Technology & Transformation Officer), Keith Macdonald (Group Chief Operations Officer).

Key AI Initiatives

• Strategic Partnership with Microsoft: FAB has partnered with Microsoft to create an “AI Innovation Hub” powered by Microsoft’s Azure AI services. This collaboration focuses on integrating AI across FAB’s product suite and back-end operations, enhancing customer experiences through advanced solutions in areas like fraud detection, risk assessment, and personalized marketing.

• Implementation of VeriTouch CRM: FAB adopted VeriPark’s VeriTouch CRM, built on Microsoft Dynamics 365, to streamline customer interactions and improve service delivery. This cloud-based CRM implementation is the first of its kind in the UAE, enhancing both customer and employee experiences.

• Hyper-Personalized Retail Offers: In partnership with Reward, FAB launched a program that leverages consumer spending insights to deliver hyper-personalized offers. These tailored offers in areas like sports, dining, and luxury have significantly enhanced customer satisfaction and engagement.

FAB’s AI initiatives demonstrate its commitment to innovation and customer-centric service, positioning it as a leader in personalized banking experiences.

Mashreq Bank

Mashreq Bank is a Fast Mover in AI Adoption. As one of the UAE’s leading financial institutions, Mashreq Bank is pioneering AI-powered customer engagement. The bank is integrating intelligent automation and hyper-personalization into its digital ecosystem to redefine banking experiences for both retail and corporate clients.

Key Executives: Ahmed Abdelaal (Group Chief Executive Officer), Mohamed Abdel Hamid Abdel-Razek (Group Chief Information Officer and Transformation).

Key AI Initiatives

• Conversational AI with Kore.ai: Mashreq Bank implemented “BankAssist,” an AI-powered assistant that enables over half a million customers to perform more than 100 banking transactions via voice or text. This solution ensures a consistent and personalized experience across digital channels.

• AI-Powered Corporate Banking Solutions: The bank’s Digital Studio uses machine learning to deliver straight-through processing and hyper-personalized financial journeys for corporate clients, improving efficiency and customer satisfaction.

• Generative AI for App Enhancement: Mashreq Bank is expanding its newly revamped mobile app with generative AI features, aiming to further enhance user experience and functionality.

Mashreq Bank’s adoption of conversational AI, omnichannel engagement, and generative AI technologies showcases its leadership in the UAE’s digital banking transformation.

Bunq

Bunq is a Fast Mover in AI Adoption. As a Dutch neobank, Bunq has positioned itself as Europe’s first AI-powered bank, redefining customer engagement through advanced AI integration. With a strong emphasis on user experience, the bank leverages generative AI to provide highly personalized financial support.

Key Executives: Ali (Founder and Chief Executive Officer), Bianca Zwart (Chief Strategy Officer), Ali el Hassouni (Head of Data and AI).

Key AI Initiatives

• Finn: AI-Powered Personal Finance Assistant: Bunq introduced Finn, an AI-powered personal finance assistant that replaces traditional search functions. Users can now ask questions like “How much did I spend on groceries last month?” and receive immediate, conversational answers, improving customer interactions.

• Enhanced Conversational Capabilities: Finn now handles up to 40% of customer queries independently and assists with another 35%, offering real-time, context-aware support that enhances the overall customer experience.

• Open Banking Integration with Mastercard: Bunq uses AI to analyze transaction data from multiple banks, helping users consolidate financial insights and plan their spending more effectively. This integration promotes a seamless and personalized financial experience.

Bunq’s use of conversational AI and open banking intelligence showcases its commitment to delivering a highly personalized and efficient banking experience for its European customer base.

Starling Bank

Starling Bank is a Fast Mover in AI Adoption. Based in the UK, Starling Bank is a digital-only bank that is pioneering the use of artificial intelligence to deliver smart, seamless, and personalized customer interactions. Its AI initiatives are central to its mission of making banking effortless and intuitive.

Key Executives: Raman Bhatia (Group Chief Executive Officer), Cyrille Salle de Chou (Chief Risk Officer), Joe Gordon (Chief Operating Officer), Steve Newson (Group Chief Technology Officer), Maria Vidler (Chief Customer Officer).

Key AI Initiatives

• AI-Driven Content Recommendations: Starling Bank analyzes transaction data and spending patterns to offer personalized financial tips within the mobile app. This initiative led to a 25% increase in app engagement, showcasing the power of data-driven recommendations.

• Personal Finance Management Tools: The app features AI-driven tools such as real-time transaction updates, automated spending categorization, and savings goal tracking, helping users manage their finances more effectively and efficiently.

• Open Banking Integration: Through open banking APIs, customers can connect external accounts, offering a unified view of their financial landscape. This integration enhances decision-making and streamlines financial management for users.

Starling Bank’s use of AI, combined with behavioral insights and open banking, allows it to deliver deeply personalized, data-driven experiences for customers across the UK.

Monzo Bank

Monzo Bank is a Fast Mover in AI Adoption. Based in the UK, Monzo Bank is a digital-first bank that leverages artificial intelligence and machine learning across its operations to personalize experiences and streamline customer support. With a focus on proactive service, Monzo is transforming how users engage with their money.

Key Executives: TS Anil (Group Chief Executive Officer), Iain Laing (Group Chief Risk Officer), Matej Pfajfar (Group Chief Technology Officer).

Key AI Initiatives

• AI-Powered Customer Support: Monzo utilizes machine learning scripts to assist support agents by suggesting optimal responses in real-time. This results in faster and more accurate handling of customer queries, enhancing the overall support experience.

• AI-Driven Financial Management Tools: The Monzo app provides users with intelligent insights into spending, saving, and budgeting behaviors. These AI-powered tools help users enhance their financial awareness and engagement, promoting healthier financial habits.

• Topic Modeling for Savings Goals: Monzo uses unsupervised machine learning to analyze how users name their savings “Pots,” allowing the bank to better understand customer goals and offer personalized recommendations for saving and investing.

Monzo’s deep integration of AI in customer support and personal finance features demonstrates its commitment to delivering a highly personalized and efficient digital banking experience for its users in the UK.

Emerging Player

Umpqua Bank

Umpqua Bank is an Emerging Player in AI Adoption. Based in the Pacific Northwest, Umpqua Bank is enhancing customer engagement by embedding AI into its service delivery. The bank is leveraging conversational and contextual AI to transform how customers interact with digital channels, ensuring more efficient and personalized banking experiences.

Key Executives: Clint Stein (Chief Executive Officer), Drew Anderson (Chief Administrative Officer), Aaron Deer (Chief Strategy & Innovation Officer), Lisa Dow (Chief Risk Officer).

Key AI Initiatives

• AI-Powered Contact Center with Cisco AI Assistant: Umpqua Bank migrated its call center to the cloud using Webex and integrated AI tools to provide agents with real-time customer data. This upgrade has improved the speed and personalization of customer service.

• Virtual Assistant for After-Hours Support: The bank launched an AI-powered virtual assistant to handle customer queries outside of business hours, ensuring consistent support and increasing accessibility for customers.

• Proactive Customer Support Planning: Umpqua is exploring AI-driven self-service features to further personalize banking experiences, such as handling account inquiries and assisting with routine requests through digital channels.

Umpqua Bank’s use of AI in customer service and self-service enhancements reflects its commitment to providing a modern, responsive banking experience.

Doha Bank

Doha Bank is an Emerging Player in AI Adoption. As one of Qatar’s leading financial institutions, Doha Bank is actively integrating AI to transform how it engages with customers. The bank’s strategic focus on digital experience and AI-driven innovation is enhancing customer satisfaction and driving progress in the region’s banking sector.

Key Executives: Sheikh Abdulrahman bin Fahad bin Faisal Al Thani (Group Chief Executive Officer), Salman Mustafa Siddiqui (Chief Risk Officer), Baiju Samuel (Chief Strategy & Transformation Officer).

Key AI Initiatives

• Enhanced Mobile Banking Features: Doha Bank uses AI to power real-time tracking of loan applications and personalized installment options within its mobile platform, simplifying the customer journey and improving the overall experience.

• AI-Driven Personalization Through the Fintech and Innovation Hub: The bank’s dedicated innovation hub promotes the co-creation of AI-enabled, customer-centric solutions, ensuring personalized and seamless digital experiences for its clients.

• Strategic Digital Transformation: Under new leadership, Doha Bank is executing a transformation plan centered around AI and personalization, aligning its banking services with evolving customer expectations.

Doha Bank’s emphasis on AI to enhance mobile experiences and redefine digital touchpoints is positioning it as a key player in reshaping customer engagement in Qatar’s financial landscape.

Bell Bank

Bell Bank is an Emerging Player in AI Adoption. As a prominent financial institution, Bell Bank is beginning to leverage AI technologies to enhance customer engagement, personalization, and overall experience. The bank is focused on exploring AI-driven solutions to improve customer satisfaction and streamline services.

Key Executives: Laine Brantner (Chief Operating Officer), Michael Solberg (President and CEO).

Key AI Initiatives

• Data Consolidation for Personalized Services: Bell Bank implemented DataMatch Enterprise to consolidate customer data across various platforms, offering a unified view of customer interactions. This integration allows for more personalized services and enhances the customer experience by eliminating data silos.

• AI-Powered Mortgage Insights: In collaboration with Homebot, Bell Bank provides personalized financial insights for homeowners, helping customers make more informed decisions about their homes and mortgages. This partnership enhances customer engagement with tailored advice.

• Exploring AI-Driven Customer Experiences: Bell Bank is exploring the use of AI to create simpler, more personalized, and inclusive banking experiences. This initiative reflects the bank’s forward-looking approach to enhancing customer interactions and satisfaction.

Bell Bank is an emerging player in the AI space, making significant strides toward leveraging AI technologies to enhance customer engagement and overall banking experience.

Grasshopper Bank

Grasshopper Bank is an Emerging Player in AI Adoption, As a digital-first commercial bank based in New York City, it is innovating customer engagement by leveraging artificial intelligence to deliver real-time insights, personalized financial tools, and seamless support. By focusing on the needs of startups and small businesses, the bank uses AI to streamline digital interactions and empower clients with actionable, data-driven solutions.

Key Executives: Mike Butler (Chief Executive Officer), Chris Tremont (Chief Digital Officer), Pete Chapman (Chief Technology Officer), Chris Mastrangelo (Chief Risk Officer).

• AI-Powered Financial Insights for SMBs – Grasshopper offers intelligent tools that provide small businesses with real-time cash flow forecasts, budgeting suggestions, and proactive alerts, helping clients make informed financial decisions.

• Automated Financial Analysis with Numerated – Through Numerated, Grasshopper delivers automated financial data analysis that enhances client communication and allows for faster, more personalized support.

• Enhanced Client Experience with Generative AI – By integrating generative AI into customer onboarding and due diligence, the bank accelerates client servicing while maintaining a high-touch experience tailored to individual needs.

By embedding AI into customer interaction points and financial advisory tools, Grasshopper Bank is redefining digital banking engagement for the next generation of business clients in the U.S.

Frost Bank

Frost Bank is an Emerging Player in AI Adoption. Headquartered in San Antonio, Texas, Frost Bank is a regional financial institution recognized for its commitment to personalized customer service. The bank is gradually integrating AI to streamline operations, enhance customer engagement, and maintain its high standards of service.

Key Executives: Phillip D. Green (Chief Executive Officer), Jimmy Stead (Chief Consumer Banking and Technology Officer at Frost Bank).

Key AI Initiatives

• AI-Powered Customer Service Assistance: Frost Bank uses AI to support customer service agents by auto-summarizing conversations and suggesting relevant information from the bank’s knowledge base. This allows agents to provide more efficient and informed assistance while maintaining a personalized, human touch.

• Transaction Data Enrichment: The bank employs AI-based data enrichment services to clean, categorize, and enhance transactional data. This helps customers gain a clearer and more detailed understanding of their financial activities, thereby improving the overall banking experience.

• Digital Experience Solutions: In partnership with LivePerson, Frost Bank integrates AI into its digital channels to improve agent productivity while maintaining high customer satisfaction. This collaboration has contributed to Frost’s consistent ranking as the top retail bank in Texas for customer satisfaction.

Frost Bank’s strategic use of AI in customer service, data enrichment, and fraud detection highlights its commitment to providing exceptional service while continuously improving operational efficiency.


Categorization Methodology

Our framework for categorizing banks assesses their AI adoption in customer service across two dimensions: “Scope of AI Deployment in Customer Service” (ranging from limited, channel-specific implementations to extensive, omnichannel integrations) and “Depth of AI Maturity” (ranging from early-stage experimentation to advanced, optimized systems). This dual approach provides a comprehensive view of both the breadth of AI integration across customer touchpoints and the technical sophistication of those systems, reflecting banks’ progress in leveraging AI for superior customer experiences. The Market Leaders category is capped at three to ensure exclusivity, reserved for banks demonstrating unparalleled scale, consistency, and proven return on investment (ROI) in AI-driven customer service.

The categorization process involved a thorough analysis of data from the provided document, including AI initiatives, partnerships, and reported outcomes. Each bank was evaluated against specific criteria within each dimension, such as the number and integration of AI-enabled channels (e.g., chatbots, voice assistants, personalized analytics), types of AI technologies (e.g., rule-based, machine learning, generative AI), duration of deployments, and measurable impacts (e.g., 68% engagement increase, 90% inquiry accuracy, 11-fold revenue growth). Banks were scored using a weighted system emphasizing recency (2024–2025), scale, strategic significance, and verified results over unverified claims or planned initiatives, with scoring calibrated to prioritize transformative, enterprise-wide AI for Market Leaders and specific, high-impact results for Impact Drivers.

This systematic evaluation resulted in four distinct categories with a clear dominance hierarchy: Market Leaders (extensive omnichannel AI with advanced maturity, delivering scale, consistency, and proven ROI); Impact Drivers (limited-to-moderate scope with intermediate-to-advanced maturity, achieving specific, measurable customer service outcomes); Fast Movers (moderate-to-extensive scope with intermediate-to-advanced maturity, aggressively expanding AI with early success); and Emerging Players (limited scope with early-stage-to-intermediate maturity, exploring AI with high future potential). Each bank’s position was determined by the breadth, depth, and impact of its AI initiatives, with particular focus on their transformation trajectory and proven capabilities in enhancing customer service.

 

Note: This analysis is based solely on publicly available information as of April 2025, sourced from company websites, press releases, and partnership announcements. While efforts have been made to ensure accuracy, the evolving nature of AI adoption positions may shift quickly. For clarification or additional details, please contact: [email protected].

Key Insights 

1. AI-Powered Personalization Fuels Customer Loyalty
   Mid-sized banks like TSB Bank, and Bankinter are leveraging AI to deliver hyper-personalized financial insights and recommendations, driving significant engagement. For instance TSB’s Adobe Experience Platform boosted mobile loan sales by 300%. These targeted, data-driven approaches enhance customer trust and retention by addressing individual financial needs with precision.
2. Conversational AI Enhances Scalability and Efficiency
   Banks such as N26, Mashreq Bank, and BS Brodnica are deploying advanced conversational AI to handle high-volume customer inquiries with speed and accuracy. N26’s Neon chatbot manages 30% of routine queries across five languages, while Mashreq’s BankAssist supports over 500,000 customers with 100+ transactions via voice or text. BS Brodnica’s Piotr virtual assistant, integrated with IBM watsonx, achieves 90% inquiry accuracy, reducing staff workload and improving service consistency across channels.
3. Strategic Partnerships Accelerate AI Maturity
   Collaborations with specialized AI providers are critical for rapid deployment and sophistication. FAB’s Microsoft Azure AI Innovation Hub, and Frost Bank’s LivePerson integration demonstrate how partnerships enable banks to implement cutting-edge solutions without extensive in-house expertise. These alliances compress adoption timelines, delivering measurable outcomes like FAB’s enhanced fraud detection and Frost’s improved agent productivity.
4. Omnichannel Integration Drives Seamless Experiences
   Fast Movers like Bunq and Starling Bank are prioritizing omnichannel AI to unify customer touchpoints. Bunq’s Finn assistant handles 40% of queries independently, while Starling’s open banking APIs provide a consolidated financial view, boosting app engagement by 25%. By embedding AI across mobile apps, chatbots, and contact centers, these banks ensure consistent, context-aware interactions, meeting rising customer expectations for frictionless service.
5. Emerging Players with High Potential
   Emerging Players like Umpqua, Doha, and Bell Bank are laying foundations for future AI leadership by focusing on foundational AI capabilities. Umpqua’s Cisco AI Assistant enhances contact center efficiency, Doha’s fintech hub drives personalized mobile features, and Bell Bank’s DataMatch Enterprise consolidates data for tailored services. These early-stage investments signal strong potential for scaling AI-driven engagement as maturity deepens.