Loyalty Blogs

The banking sector has witnessed an immense transformation over the years and many traditional banking models are being disrupted by evolving customer expectations. Research says nearly 80 million Americans will be using digital banking services by 2028- which is almost a quarter of the entire population. This growth in digital banking services has transformed what customers want and expect from their banking providers. They value personalization and instant service delivery more than anything from their banking providers.

Companies must be prepared to improve the customer journey and thrive in an increasingly competitive environment. In this blog, we will learn about the importance of investing in AI powered loyalty software, the latest trends in banking and financial services, and how businesses in this sector can stay ahead in 2025.

Top Aspects That Must Be Considered for Banking and Financial Services

With customers demanding 24/7 on-demand service delivery, seamless omnichannel experience, and faster customer service response, banking firms must meet the increasing demands of their customers while maintaining security. Here are some of the main challenges associated with the banking sector and how the right approach will help in achieving long-term customer loyalty.

• Loyalty

As more and more people are becoming more informed about your options with new market entrants that are offering appealing value propositions, it will become difficult to retain customers long-term in 2025. Many Americans are stuck with financial products that offer disappointing services and lousy rates.

To win customer loyalty, the best strategy is to focus on service and key differentiators of the company, such as how we talk to customers. Additionally, customers are giving more emphasis to sustainability, which means they are motivated to buy from companies committed to making a better world.

• Artificial Intelligence

Artificial intelligence is transforming the way every business works, making business processes better at what they do by eliminating repeated manual steps such as retrieving information, etc. Customer service agents can now focus on their unique requirements and the intention of the customers to whom they are assisting. This helps in connecting with them on a deeper level and listening more actively with personalized interactions.

In 2025, banking and financial firms must integrate AI into the bank loyalty program to elevate their banking loyalty experience. Rather than working with siloed teams and processes for mortgage accounts, credit card holders, and checking accounts, AI can help bring all the data together, enabling banks to unlock a wide range of benefits in one go.

• Omnichannel

To make the right use of data for customer experience, it is essential to have all the systems in place that will enable data to flow seamlessly between customers across all channels and brands. Gone are the days when contact centers in the banking sector were very segmented. In 2025, these siloes will break down with the continuous efforts of banking institutions and the use of the right technologies.

With the help of AI, it will be possible to predict the best methods for faster customer resolutions based on behavior and sentiment. Brands must now keep focus on embracing an increasingly channel-less and omni-modal approach. Omnichannel insights will continue to play a huge role in the long-term success of customer experience in 2025. This is because more than 75% of customers expect a consistent experience irrespective of the channel they interact with the brand.

Biggest Trends for Banking Industry in 2025

The banking industry is all set for significant transformation by 2025 that traditional banks and similar fintech businesses must embrace to transform themselves and meet changing demands. Here are some of the biggest trends that will be witnessed in 2025 and beyond, which are driven by evolving customer expectations and technological advancements.

• One of the main trends is the growing demand for more personalized experiences. Research says that over 60% of customers in the banking sector expect their banks to understand their unique needs, and many are even willing to switch providers if personalization falls short. This shows the need for personalization in the banking industry. More than 40% of finance firms are already leveraging AI to boost customer experiences and foster loyalty.
• Focusing on Automation and artificial intelligence in customer service is also becoming an essential aspect. By the end of 2025, investments in generative AI within global banking are likely to reach $1.68 billion, which is changing the way banks engage with customers. Smart assistants are also rapidly evolving, with AI-driven chatbots that not only address basic inquiries but also reroute complex requests to human agents when necessary for faster service delivery.
• Open Banking is another trend that will enable seamless integration of third-party services via APIs. As more than 10% of digitally active consumers are currently utilizing Open Banking solutions, traditional banks have started forming strategic partnerships with FinTech firms to boost their offerings and foster innovation.
• Another important trend is to promote enhanced security as cybercrime escalates and customers grow increasingly vigilant about their data security. This is leading to the rise of biometric authentication, which is reshaping app logins, payment authorizations, and identification of verification processes.

As we can see, the trends discussed above showcase a dynamic transformation in the banking sector, which focuses on personalization, technology integration, and security.

Final Thoughts

After going through the blog, you must have figured out the top customer experience forces that must be kept in mind to succeed across banking and financial services. By implementing the right strategies, businesses can unlock immense opportunities to elevate customer experience and meet the evolving expectations of today’s customers.

If you are struggling to meet the changing face of customer experience in the banking sector, Novus is an all-in-one Omnichannel Loyalty Program Software that enables several businesses across the globe to build customized banking loyalty solutions for long-term success. With years of expertise, our loyalty experts offer end-to-end loyalty management solutions for banks, credit unions, insurance, and other financial institutions tailored to specific needs. Book a demo today to learn how Novus can help you unlock new opportunities for better growth and enhanced customer loyalty.