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Customer Experience in Financial Services: Why It’s Now an IT Imperative
Global Banking & Finance Review®
Company
In financial services, customer experience is more important than ever. It plays a key role in building trust, increasing loyalty, and staying competitive. Still, many organizations are struggling to get it right. As reported by
In financial services, customer experience is more important than ever. It plays a key role in building trust, increasing loyalty, and staying competitive. Still, many organizations are struggling to get it right. As reported by Gartner’s CMO Spend Survey, even marketing leaders admit they fall short when it comes to customer understanding and experience management. For an industry that claims to be customer-first, too many journeys are disrupted by outdated systems, poor data visibility, and disconnected channels.
This is why more CIOs and CTOs are being asked to take ownership of the customer experience. Technology teams are no longer focused only on maintaining systems and infrastructure. Their work now shapes how customers interact with the brand every day. Foundry’s 2025 State of the CIO report confirms this shift, ranking customer experience as the second highest CEO priority for IT leaders, just second to implementing AI. When both areas come together, the result is a more connected, responsive, and human experience for every customer.
AI-powered interactions that feel human
Customers trust what feels familiar. According to KPMG’s 2024 CX report, brands are giving their AI personalities, conversational styles, and emotional cues. It’s a tactic borrowed from voice assistants like Siri and Cortana, and it works. AI-powered assistants and chatbots are quickly becoming a key part of customer experience in financial services. No longer limited to basic tasks, these tools are evolving into personalized, emotionally aware 24/7 support systems.
Personalization is only as good as your data
Most personalization efforts fail not because of bad design, but because of incomplete, outdated, or fragmented data. If your systems can’t see the full picture of a customer, your service won’t reflect their real needs or behavior.
For personalization to work, financial institutions need clean, connected, and real-time data across every touchpoint. This means bringing together core banking systems, CRM platforms, digital channels, and customer support data into a single view. Anything less leads to inconsistent, frustrating experiences.
In many cases, legacy systems are the root of the problem. This is where well-designed software solutions for financial services can have a meaningful impact on the customer experience strategy. By investing in modern infrastructure and focusing on data quality management, they lay the groundwork for AI-driven insights and tailored service.
Hyperpersonalization as the next step
Once the right data foundation is in place, banks can start delivering the kind of experiences customers expect from the best financial organizations. This means more than just using a first name in an email. It’s about understanding individual behaviors and responding with meaningful, timely actions that feel personal.
Some financial institutions are already using AI to do just that. By analyzing transaction patterns and predicting preferences, they can tailor offers, rewards, and financial advice to each customer. The result is a more relevant and engaging experience that builds stronger relationships over time.
Cybersecurity’s impact on the customer trust
Security incidents in finance don’t just disrupt operations, but also damage customer confidence. When personal data is exposed or accounts are compromised, the fallout goes beyond financial loss. Customers lose trust in the institution’s ability to protect them. In recent years, major breaches have shut down mobile apps, delayed payments, and left customers in the dark for days. Experiences like these leave a lasting impression and make people think twice about who they bank with.
Modern threats are evolving fast, and customers are increasingly aware of them. They expect their bank to stay ahead of fraud, even as criminals use AI to launch more sophisticated attacks. This puts pressure to deliver experiences that are both secure and seamless. Strong cybersecurity, powered by real-time fraud detection and AI has become essential to earning and keeping customer trust.
The Rise of Embedded and Ecosystem Experiences
Financial institutions are expected to deliver seamless, on-demand services that integrate into the everyday lives of their customers. Take Walmart, for example. By embedding banking features directly into their platform, they boosted marketplace revenue by 40%. This shift to embedded finance is reshaping how businesses interact with their customers and presents an opportunity for banks to evolve from traditional service providers to agile, tech-driven platforms. Embracing Experience-as-a-Service (XaaS) is key to enabling these connected, personalized experiences that customers expect.
However, to truly capitalize on embedded finance, compliance and risk management need to be built in from the start. Integrating essential elements like Know Your Customer (KYC), anti-money laundering (AML), and fraud detection directly into the platform ensures security and regulatory adherence. Real-time monitoring and automated billing further streamline operations.
This holistic approach ensures that embedded finance solutions meet customer expectations while adhering to the strict regulatory requirements essential to the financial sector’s integrity.
The right delivery model for customer experience -focused tech
Delivering great customer experience through technology means knowing when to build capabilities internally and when to bring in outside expertise. Some projects benefit from upskilling your team over time. Others require niche skills, speed, or scalability that are best achieved through a partner.
This matrix helps to choose when to grow talent in-house and when to collaborate with a software development expert. Whether you're tackling legacy systems or launching AI-driven solutions, choosing the right approach keeps your customer experience goals within reach.
Turning strategy into experience
Customer experience is shaped as much by data models and backend systems as it is by front-end design. The real challenge is understanding the customer deeply enough to make those features meaningful. Finance IT leaders who combine smart infrastructure with cross-team collaboration will shape the future of customer experience. Rethink your tech strategy through the lens of how it feels to the customer, because great experiences are built from the inside out.
Customer experience refers to the overall perception and interaction a customer has with a brand or organization throughout their journey, including all touchpoints and channels.
AI in financial services involves using artificial intelligence technologies to enhance customer interactions, automate processes, and provide personalized services to clients.
Hyperpersonalization is an advanced form of personalization that uses data analytics and AI to tailor services and communications to individual customer preferences and behaviors.
Cybersecurity refers to the practices and technologies designed to protect networks, devices, and data from unauthorized access, attacks, or damage.
Embedded finance refers to the integration of financial services into non-financial platforms, allowing businesses to offer banking services directly within their applications.
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