In the banking sector, most financial institutions face challenges directly related to customer expectations that are shaped by industries outside of financial services. Consumers expect the experience and functionality they receive from retail outlets, fast-food restaurants and coffee shops when they transact with their bank or credit union. If a bank or credit union cannot meet a consumer’s demands, that customer or member increasingly has no issue shopping around and finding one that does.
Now more than ever, consumers understand they are in control, acting as a driving force that dictates the pace of industry change. According to Raddon’s deposits and investments research, for 57% of consumers, a 2.25% delta in a consumer’s current rate of return has become the point of inflection for moving an account to a new institution. As we study the generational segments and behaviors by segment, financial institutions must respond appropriately. Unfortunately, many banks and credit unions lack centralized innovation ownership and can be slow to implement change.
Customer engagement is a mission-critical priority
Customer engagement remains a crucial business objective for banks and credit unions across channels. More institutions are exploring strategies to expand the interplay between digital and physical channels, particularly in a business model with commoditized products.
The focus on customer experience (CX) throughout the customer journey needs to expand. This can be accomplished by finding new ways to leverage data and insights to maintain competitiveness. Successful customer engagement results in consumer’s feeling heard and their needs prioritized.
Making significant enhancements to customer engagement requires banks to have a deep understanding of the unique needs, challenges and financial knowledge of their customers and prospects.
The changing role of the branch
Although consumer preferences start with digital channels, human connection remains a key factor in the institutions they choose to do business with. Many consumers who used a branch pre-pandemic continue to use it today, albeit with less frequency. Over 50% of consumers are engaging with bankers for financial advice. With this limited access to personal interaction, banks would be well served to provide bankers with a complete view of customers for when they engage.
Typically, branches have played a mostly transactional role, but emerging technology has transferred many of these tedious tasks to the digital channel. As a result, bankers are finding themselves in a better position to offer more complex services such as needs analysis and financial advice.
What’s more, bankers also fill the role of experts on their digital delivery channels, helping customers locate information and execute self-serve tasks like automated bill-pay setup. According to ARGO research, 84% of customers visit their branches annually, and 66% visit up to five times per year.
When a customer chooses to visit the bank, cross-channel insights and a comprehensive view of the customer empower the banker to meet needs and offer support effectively. If the customer schedules an appointment for a specific purpose, the banker can prepare targeted solutions.
By blending automation and banker engagement, banks can offer the best of both worlds. Automation allows institutions to operate at scale, improve efficiency and meet customers where they are on their journey. Combining automation with human touch elevates the digital-only experience and has proven to be better for both customers and bankers.
Technology bridges gaps in CX
As banks shift from transactional to advisory, we must provide bankers real-time insights to personalize interactions and strengthen customer relationships. Technology enhances their ability to deliver data-driven recommendations, ensuring consistency across digital and in-person channels.
A bank’s choice of technology plays a key role in shaping customer engagement and addressing gaps in customer experience. Advanced analytics and workflow-driven solutions create a strong foundation for improving interactions and meeting customer needs.
Banks can differentiate themselves competitively by adopting innovative strategies that leverage technology and data to enhance the customer journey:
- Listening Technology – Enables banks to detect, interpret, and quantify customer needs in real time, allowing for more proactive engagement.
- Personalized Content Delivery – Uses data-driven insights to provide relevant and timely messaging across digital and physical channels.
- Sensory Technology – Monitors customer behavior at every stage of the journey, offering a deeper understanding of preferences and engagement patterns.
- Omnichannel Architecture – Creates seamless collaboration between digital and physical touchpoints, ensuring a frictionless customer experience.
Beyond technology, analytics plays a critical role by quantifying key indicators such as purchase propensity and predictive attrition risk. Implementing a data-driven approach to attrition risk is particularly critical. Continuous assessment allows institutions to proactively implement targeted retention strategies, tailoring interventions based on a customer’s risk profile and overall value to the bank.
Additionally, recognizing behavioral patterns at both the customer and institutional levels provides a strategic advantage, allowing banks to refine product offerings, identify emerging market demands, and adapt their strategies.
Making customer engagement actionable
While banks recognize the importance of cross-channel engagement, translating strategy into measurable impact can be challenging. Real-world examples demonstrate how institutions successfully implement engagement strategies to drive results.
For example:
- A financial institution leveraged advanced analytics to identify consumers likely to need financial guidance. By proactively reaching out with tailored solutions, they improved engagement and deepened relationships.
- Another institution integrated appointment scheduling into its digital platform, making it easier for customers to transition from self-service research to in-person consultations. This improved efficiency and strengthened personal connections.
- A bank refined its customer outreach using behavioral insights, delivering timely financial education and product recommendations based on transaction trends, leading to increased service adoption.
By applying data-driven insights and technology, banks can move beyond theory and create engagement models that strengthen customer relationships, improve retention, and drive long-term growth.
As banks continue to adapt to shifting consumer challenges and a widening customer experience gap, blending digital convenience with human expertise will redefine customer expectations, foster long-term loyalty, and secure a competitive advantage in today’s market.
Todd Robertson is a Senior Vice President for ARGO.
