Kevin Cohee, Chairman & CEO, OneUnited Bank, an award-winning CDFI and America’s largest Black owned bank.
For years, companies competed primarily on products, pricing and scale. Today, that competitive landscape has fundamentally changed. Across industries, consumers increasingly expect businesses to know them, anticipate their needs and deliver experiences that feel personalized, seamless and responsive in real time.
Personalization is no longer viewed as a premium feature; it is rapidly becoming the baseline expectation.
The Personalization Economy Has Arrived
Businesses are responding accordingly. According to industry research, 92% of companies are embracing AI-powered personalization strategies to better tailor customer experiences. Consumers are rewarding those efforts. A 2023 Medallia Market Research survey found that 82% of consumers say personalized experiences influence the brands they choose in at least half of their purchasing decisions.
The message from consumers is clear: People no longer want to be treated as segments or account numbers. They want to be understood as individuals.
That expectation has reshaped the relationship between brands and customers. Companies such as Netflix, Amazon, Spotify and Uber have trained consumers to expect experiences that are intuitive, predictive and personalized. Increasingly, customers expect every industry, including banking, to operate with the same level of relevance and responsiveness.
As technology evolves, so do expectations. Salesforce research found that 73% of consumers expect personalization as technology advances, while 65% expect brands to adapt to their changing needs. Yet many still feel businesses fail to recognize them beyond transactional relationships.
From Product-Centric To Experience-Centric
This shift represents a larger transformation underway across the marketplace: the evolution from product-centric business models to experience-centric ones.
Historically, businesses focused primarily on what they sold. Today, consumers place equal, if not greater, importance on how those products and services are delivered. Convenience, usability, transparency, personalization and emotional connection now play a major role in customer loyalty.
That is especially true in financial services.
For decades, banks competed largely on rates, products, branch networks and transactional efficiency. Those factors still matter, but they are no longer sufficient differentiators in a digital-first economy where consumers can compare financial products in seconds.
Customer experience has become the new battleground in banking.
Research increasingly shows that service and experience drive loyalty more powerfully than products alone. In a recent Harris Poll survey commissioned by Ricoh, 59% of Americans said good customer service was among the top reasons they stay with their bank, while only 42% cited products and services as the primary reason.
The modern banking customer wants flexibility. Some consumers prioritize personalized guidance and trusted relationships. Others want fast, frictionless digital experiences with minimal human interaction. Most want both, depending on the moment and the need.
How AI Is Reshaping Banking Expectations
Artificial intelligence is enabling financial institutions to move beyond one-size-fits-all service models toward more adaptive, contextual and personalized experiences. AI-powered systems can analyze customer behavior, transaction patterns, financial goals and engagement preferences to deliver more relevant recommendations and support in real time.
Increasingly, customers are open to these innovations. Research shows that 71% of consumers would welcome an AI assistant integrated into their bank’s mobile app, while 65% are open to using GPT-like financial assistants through digital banking platforms or digital wallets.
The implications are significant.
AI allows banks to proactively engage customers rather than simply react to them. Instead of waiting for a customer to ask for help, intelligent systems can provide reminders about upcoming payments, suggest refinancing opportunities, offer budgeting insights or identify financial behaviors that may help improve long-term outcomes.
As importantly, AI can help create connected experiences across every touchpoint.
Today’s consumers expect to begin an interaction on a mobile app, continue it online and complete it in a branch or through customer support without friction or repetition. They expect their bank to remember them, understand their preferences and provide continuity across channels.
This is why data, integration and digital usability have become central to modern banking strategy.
The Rise Of ‘Empathetic Banking’
In my experience, customers increasingly evaluate financial institutions based on:
• Ease of use
• Mobile functionality
• Transparency
• Speed of service
• Personalization
• Accessibility
• Proactive communication
In many ways, consumers are seeking what could best be described as empathetic banking: experiences designed around convenience, clarity and trust. That includes features such as real-time alerts, self-service tools, personalized financial guidance, transparent fee structures and intuitive digital interfaces that reduce friction instead of creating it.
Digital transformation does not eliminate the need for human connection. Physical branches and personal relationships still matter deeply, particularly when customers face major financial decisions or challenges. The future of banking is not a question of AI versus human interaction; it is the intelligent blending of both.
The institutions that will lead in the years ahead are the ones capable of combining AI-driven convenience with authentic human trust.
Meeting Customers Where They Are
At my bank, we recognize that modern banking is no longer just about delivering financial products. It is about meeting customers where they are, understanding how they live and helping them navigate financial decisions with greater confidence and clarity.
This evolved mission mandates more than technology alone. It requires intentionality around the customer experience.
Consumers want banking experiences that reflect the realities of their lives whether that means mobile-first convenience, personalized financial insights, proactive support or trusted guidance during critical moments. They want financial institutions that see them not simply as account holders, but as people with evolving goals, challenges and aspirations.
As AI continues to reshape customer expectations across industries, banks have an opportunity to redefine how they build loyalty and long-term value. To succeed in this new landscape, institutions must focus on creating the most meaningful, personalized and trusted experiences.
In today’s economy, for customers, the experience is the product.
Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
