Consumers Demand Digital Lending but Trust Remains Critical…

Event summary

Abrigo's June 2026 survey of 1,020 U.S. adults found 54.5% prefer digital loan applications, rising to 68% among Gen Z and Millennials.
76.8% of consumers expressed concerns about data handling, with 39.4% extremely or very concerned.
70.6% of consumers are uncomfortable with AI making initial loan decisions without human involvement.
56.5% of consumers needed credit but decided against applying, primarily due to high interest rates (27.4%) and debt avoidance (23.4%).

The big picture

Abrigo's survey highlights a growing tension between consumer demand for digital convenience and deep-seated trust issues in AI-driven lending. Community financial institutions have an opportunity to differentiate themselves by balancing technology with human relationships, especially as younger generations increasingly favor digital experiences. The findings underscore the strategic importance of transparency and data security in maintaining customer loyalty in an evolving fintech landscape.

What we're watching

Trust Dynamics: How community banks and credit unions leverage existing relationships to build trust in AI-driven lending processes.
Generational Shifts: The pace at which younger generations' preference for digital lending will reshape industry standards.
Regulatory Scrutiny: Whether heightened consumer concerns about data privacy will prompt stricter regulations on data handling in lending.