As customer expectations continue to evolve, financial institutions face a growing challenge: understanding what their customers truly want—before they take their business elsewhere.
According to the 2025 ProSight Banking Outlook, digital banking is now the preferred channel across all generations, and yet only 11% of bankers rate their digital customer experience as excellent. This disconnect is particularly pronounced among younger consumers:
- Gen Z prioritizes hyper-personalization, and the lack of it is their top frustration in digital banking.
- Gen Z and millennials are the most likely to switch institutions in search of a better digital experience.
For financial institutions that have long relied on in-person service as a differentiator, these shifts raise an important question: Are traditional methods of understanding customers still enough?
From Transactional Data to Deeper Insights
Most FI’s have access to vast amounts of data, but not all data is created equal. Transaction history and service usage can reveal a lot, but they often fail to capture the full picture of customer sentiment, frustrations, and expectations.
Financial institutions need to go beyond basic metrics and start focusing on:
- Predicting customer needs – Moving from reactive service to proactive engagement.
- Personalizing digital experiences – Offering tailored product recommendations, messaging, and support.
- Bridging the digital vs. human service gap – Identifying when customers prefer self-service and when they expect personal interaction.
- Understanding why customers leave – Not just tracking churn, but uncovering the factors that drive it.
FI’s that rely solely on generic market reports or broad industry benchmarks risk missing critical nuances in their customer base. The institutions leading the way are investing in Voice of the Customer (VoC) Insights, allowing them to:
- Identify at-risk customer relationships before they escalate.
- Adapt their CX strategies based on real customer needs and desires, rather than assumptions.
- Fine-tune digital transformation efforts to align with evolving expectations.
Why This Matters Now
The financial industry is at an inflection point. As digital expectations rise, customers are less patient with outdated experiences—especially younger generations. Institutions that fail to understand and address these frustrations risk losing valuable relationships.
At the same time, there’s a competitive advantage for those that get this right. Banks and credit unions that invest in deeper customer intelligence can differentiate on experience, leading to higher engagement, greater loyalty, and stronger financial performance.
The question isn’t just how much data banks have—it’s how well they’re using it to make informed, customer-centric decisions.
Looking Ahead
As financial institutions move forward, they must reassess how they gather and act on customer insights. Relying on limited CX data—such as NPS alone—or assuming that a CX program has “run its course” can weaken a bank’s ability to truly understand its customers. A well-designed, comprehensive CX strategy that aligns with internal sales, growth metrics, and long-term goals will be a key competitive advantage. Organizations that take a customized approach—integrating customer insights with operational and financial data—will be better positioned to anticipate needs, drive engagement, and strengthen relationships.
