Banking customers of all ages want more personalization—but they may not understand what that entails

The trend: A big majority of banking customers want more personalized banking experiences, and most are willing to let their banks use their data for this purpose. 

But helping customers understand just how these personalized services are rendered makes clear and transparent communication critical.

• That’s according to a survey of 1,505 US consumers commissioned by software company Q2 and conducted by The Harris Poll in February 2024.

By the numbers: Respondents were generally satisfied with their financial institutions (FIs), but many feel the way banks interact with customers needs improvement.

• 89% of respondents were satisfied with their primary bank’s ease of service and mobile banking solutions.
• 41% of baby boomers and Gen Xers, 48% of millennials, and 56% of Gen Zers interact with their bank’s mobile app or website daily.

But 74% of customers wanted more personal experiences from their banks, highlighting a priority for improvement.

• Most respondents understood what banks need to provide that—their data. Sixty-six percent of respondents are comfortable with their data being used to improve their experience.

The AI factor: This finding conflicts with customers’ understanding of how AI is used to enable more personalized experiences. 

In a recent survey, 44% of banking customers were fine with their banks using AI, but many of these customers didn’t want AI to have access to their personal data.

• That included 11% of Gen Zers and 7% of baby boomers, with 10% of consumers overall saying they weren’t comfortable with AI-powered banking solutions having access to their data.

This finding calls into question whether the customers of the Q2/Harris Poll survey understand exactly how most banks would be able to offer more real-time, personalized messaging and recommendations, and more.

The marketing takeaway: Personalization has become the latest battleground for brand differentiation. Customers want more of it, and many FIs are implementing or are considering implementing AI solutions that could make it happen. But FIs must focus on communicating clearly and transparently with customers about how their data is being used and kept safe when AI gets access to it, and how they will benefit.