Banking shifts to customer experience as new competitive edge

In a Forbes Council article, Kevin Cohee of OneUnited Bank says 92% of firms are now using AI‑driven personalization, marking a clear pivot from product‑centric competition to experience‑centric banking【1】. The shift matters because consumers increasingly tie loyalty to how banks make them feel, with 71% willing to adopt AI assistants in mobile apps【1】.

From product focus to experience focus

Historically, banks differentiated on branch networks, rates and product suites. As digital channels compress product gaps—savings rates and payment capabilities now vary only marginally—customers evaluate banks on ease of use, speed, transparency and personalization【2】. A Harris Poll commissioned by Ricoh found 59% of Americans rank good customer service above product features when staying with a bank, while only 42% cite products as the primary reason【1】. This mirrors a Medallia survey where 82% of consumers say personalized experiences sway their brand choices in at least half of purchasing decisions【1】.

AI as the engine of empathetic banking

Artificial intelligence enables banks to move from reactive to proactive service. By analyzing transaction patterns and financial goals, AI can deliver real‑time alerts, budgeting tips and refinancing suggestions without a customer request【1】. The same research shows 65% of consumers are open to GPT‑style financial assistants, indicating appetite for deeper, conversational support【1】. Banks that integrate these capabilities aim to create “empathetic banking”—a blend of seamless digital interactions and trusted human advice that builds confidence through everyday moments such as on‑time payments and quick issue resolution【2】.

What to watch

• AI adoption metrics – Track quarterly reports from major banks on AI‑driven personalization spend; a rise above industry averages could signal competitive advantage.
• Consumer sentiment surveys – Upcoming releases from Medallia and Harris Poll will gauge whether the 71% willingness to use AI assistants grows, shaping expectations for digital‑first banks.
• Regulatory guidance on AI in finance – Watch for any BIS or U.S. regulator statements on AI risk management, which could affect banks’ rollout speed.

The banking sector’s move toward experience as its strongest “currency” suggests that future competitive advantage will hinge less on product pricing and more on how consistently banks deliver personalized, trustworthy interactions across every touchpoint. The open question remains: which institutions will master the blend of AI efficiency and human empathy to capture lasting loyalty?