# Banks Struggle with Omnichannel Strategy Amid Tech and Alignment Gaps

**Published:** 2026-09-16T13:19:55.496Z  
**Topic:** Banking  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/40606643-f385-4018-b23b-5d8f8527f6ef

68% of banking executives report technology architecture hinders customer service, as institutions face challenges in aligning omnichannel strategies and

Sixty-eight percent of U.S. and U.K. banking executives state their technology architecture actively hinders their ability to serve customers effectively, according to a 2025 Baringa retail banking survey [2]. This highlights a significant challenge for financial institutions aiming to implement seamless omnichannel banking experiences, despite continued investment in coordinated customer journeys [2].

| At a glance | |
|---|---|
| Tech Hindrance | 68% of executives [2] |
| Unified Strategy | 41% of executives [2] |
| Cross-channel Fragmentation | 40% cite as barrier [2] |
| Digital-only Bank Success | Mixed, few profitably scaling [1] |

## Omnichannel Implementation Challenges

The core idea of omnichannel banking is to allow accountholders to move frictionlessly between channels and touchpoints, offering greater personalization [2]. However, many institutions struggle with the fundamentals of this vision. A 2026 Capgemini study found that only 41% of financial institution executives have a unified customer journey strategy, and 40% cited cross-channel fragmentation as the biggest barrier to an effective customer experience [2].

A key blind spot in omnichannel strategy is a lack of institutional alignment, where management may appear to agree on goals but execute with conflicting priorities [2]. For example, a CEO might prioritize growth, while a CFO focuses on profitability, and a marketing lead emphasizes acquiring accounts at the lowest unit cost [2]. Ivan Peña, vice president of checking acquisition at ADVANTAGE, suggests that the marketing budget is a critical indicator of commitment to any strategy, as it reflects the resources allocated to achieve broader outcomes beyond just acquisition costs [2].

Another challenge is defining success too narrowly, often by focusing on channel-specific metrics like new accounts, clicks, or impressions [2]. A holistic approach requires shifting to a multilevel performance model that includes strategic indicators such as net portfolio growth and customer lifetime value (LTV), behavioral metrics like cross-channel conversions and direct deposit setup, and operational measures like first-contact resolution [2]. Peña emphasizes tracking how long customers remain and what happens after acquisition, especially in the first 90 days, to determine if an effort truly deepens relationships [2].

## The Enduring Role of Physical Branches

Despite the push for digital integration, the role of physical branches remains relevant, particularly for complex financial needs and building trust [1]. The number of bank branches per capita in the U.S. has remained consistent over the last 20 years [1]. Digital-only banks have had mixed success; while Ally Bank and Goldman Sachs Marcus have grown to approximately $100 billion in deposits, this does not place them among the top 10 U.S. banks by deposit share [1]. Several well-funded digital-only ventures, such as WingSpan Bank, Finn, and NetBank, have failed to reach scale and subsequently closed [1]. More recently, some neobanks, despite significant venture capital funding, appear to be struggling to scale profitably, with Monzo reportedly withdrawing its application for a U.S. license [1].

Industry leaders like Jamie Dimon view branches as key customer engagement channels, partly due to the trust component associated with a physical presence [1]. For digitally savvy millennials, occasional branch visits become more frequent as their financial needs, such as mortgages, retirement savings, or business loans, become more complex [1]. This suggests that branches are evolving into essential advice centers for complex products and symbols of trustworthiness, mirroring the omnichannel trend seen in other retail sectors [1].

## What to watch

*   **Technology investment efficacy:** Monitor how financial institutions address the reported technology architecture hindrances and whether new investments lead to improved customer service metrics.
*   **Alignment of executive incentives:** Observe if institutions begin to align budgets, incentives, and dashboards more closely with holistic omnichannel goals rather than siloed departmental targets.
*   **Performance of digital-only banks:** Track the profitability and scaling efforts of newer digital-only neobanks, particularly in light of past struggles and recent withdrawals from market expansion.

The ongoing struggle to integrate digital and physical channels effectively suggests that while the vision of seamless omnichannel banking is clear, the execution remains complex, requiring fundamental shifts in technology, organizational alignment, and performance measurement.

## Sources
1. Alixpartners — [Omnichannel banking – why bricks and mortar banks... | AlixPartners](https://www.alixpartners.com/insights/102h8l3/omnichannel-banking-why-bricks-and-mortar-banks-still-matter-in-the-digital-age/)
2. The Financial Brand — [Why Your Omnichannel Strategy Fails Before the First Campaign Runs](https://thefinancialbrand.com/news/personalization/why-your-omnichannel-strategy-fails-before-the-first-campaign-runs-199390)

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Cite as: TrendWatcher, "Banks Struggle with Omnichannel Strategy Amid Tech and Alignment Gaps", https://www.trendwatcher.in/article/40606643-f385-4018-b23b-5d8f8527f6ef