The news: Mastercard will launch Agent Suite, a program offering customizable AI agent services for enterprises in the second quarter of this year, per a press release.

• For banks, Agent Suite could include agents embedded within their apps that recommend financial products suited to a consumer’s needs.
• Merchants can use the program to launch agents that conversationally assist customers over the course of their shopping journey.

Why this matters: AI-powered product selection and advice connects with consumers. 

• 45% of US shoppers are very or somewhat interested in personalized product recommendations from AI-enhanced shopping tools, per an EMARKETER and CivicScience survey conducted by CivicScience. 
• And 60% of worldwide consumers are interested in AI agents that recommend complimentary products/services based on existing products, per a Salesforce report, which also applies to banks trying to cross-sell financial products.

Implications for payment providers: For issuers and other financial institutions trying to attract younger consumers, investment in AI could help drive more account openings or card acquisitions. Roughly half of consumers ages 30 and under use genAI regularly, per Boston Consulting Group (BCG).

As Gen Z and Gen Alpha grow into early adulthood accustomed to genAI solutions, financial institutions should meet them at their level of tech literacy with personalized, instant recommendations and solutions.