ChatGPT Generation: AI Tech is helping Brits make sense of our finances

• Almost a quarter (22%) of under 25s use ChatGPT to try and understand their banking T&Cs
• 50% of Brits use Google to search for banking term definitions
• 1 in 5 don’t check the meaning of financial terms they don’t understand before signing up to new financial agreements

 
As AI technology continues to rise in popularity, a new survey by online savings provider Ford Money has found that almost a quarter (22%) of under 25s now use ChatGPT to find the meaning of financial terms.

Perhaps most worryingly, there are some Brits who admit to choosing to stay in the dark altogether when it comes to tackling their T&Cs. Ford Money’s research found that 1 in 5 adults in the UK don’t check the meaning of financial terms they don’t understand, but sign up to agreements anyway.

A third admit they don’t know what the base rate is, or how it actually impacts their own finances (34%). Over 1 in 10 participants (11%) were even certain that a base rate change doesn’t impact them at all. This lack of understanding could mean people are missing out on opportunities to make their money and hard-earned savings work harder for them.

Although, with the lack of financial education available in the UK, it’s no wonder why many Brits are turning to AI bots for help. In addition to AI support, 50% of people admit to using social media platforms such as TikTok for financial guidance, with hashtags such as #MoneyTok gathering 26.2 billion views^[1]. As expected, this is particularly prevalent with younger generations with 25% of 18-24-year-olds using TikTok to improve their financial knowledge^[2].

The research also discovered that most of us Brits don’t understand common financial terms such as APR (30%), AER (27%), variable mortgage rates (29%), personal savings allowance (27%) and ISA (26%).
 
Will Davies, Chief Deposits Officer, at Ford Money, said:
 
“It’s concerning that there is such a clear gap in consumer knowledge when it comes to understanding the details of financial contracts.

Whilst it’s great to see that people are looking for new and inventive ways to help them understand confusing terms, AI does still have limitations. However, at the end of the day, the onus is on Banks to make it easier to understand the information they are sharing with their customers in the first place.

It’s one of the reasons why we’ve launched our latest content series, Money Miles. With the help of relatable finance influencer, Ellie Austin-Williams from This Girl Talks Money, and comedian Tom Houghton, Ellie & Tom discuss the questions we all want answering but don’t always want to ask. At Ford Money, we want to encourage people to get more hands-on and to understand how to make their money work harder for them.”
 

 
 
The campaign, Money Miles, on behalf of digital-only savings bank Ford Money includes personal finance expert, Ellie Austin-Williams, bringing to light to the comedian, Tom Houghton, how more people are relying on AI, the internet and other sources for their financial education. The expert also addresses the issue around many people not understanding their banks T&Cs and how it will impact their finances.
 
Methodology

Ford Money commissioned research firm, Censuswide, to conduct the research. The study was conducted from June 30th to July 5th, 2023, and involved a comprehensive poll of a diverse sample size comprising 2015 individuals aged 16 and above.