By Nick Merritt, Regional Lead – Commercial Growth, Europe/APMEA | Executive Director at Designit
For years, financial services have defaulted to a simple mantra: “Let’s make an app!” And for years, that approach worked, revolutionizing access to financial tools. But today, consumers are waking up to the downsides of screen-time addiction and app saturation. It’s time to rethink how we engage them in ways that feel human and genuinely meaningful.
Apps made banking simple and convenient, but convenience now comes at a cost. Screen fatigue and shortened attention spans which many attribute to smartphone use has left many people overwhelmed. Consumers delay putting their attention on financial matters especially, given their perception of being both difficult and important (and at times a bit boring). A study from last year found that 14% of those polled delayed checking their pension, 14% reviewing their monthly budget, and 11% setting up a savings account.
In short, the banking industry needs a fresh approach.
And now, with Gen Alpha likely to grow up in a world that is hyper-aware of the dangers of screen obsession, we’re reaching a tipping point.
In light of the ‘attention economy’ and consumers looking to re-think how they engage with brands, financial and banking organisations will need to foster connections that are meaningful, human, and rooted in the real world.
In a world where people are looking for dumbphones, digital detox breaks and a way out of the constant pressure of doomscrolling, the way to transform the customer experience may be by catering to people’s desire to disconnect.
Why Apps Aren’t Enough
Mountains of financial information are available online, from banks’ own websites to existing apps to YouTube tutorials. The issue isn’t availability; it’s the challenge of distilling it and helping consumers make sense of it.
Young people today are more financially literate than ever. Kids are managing their own credit cards, making online purchases, and even learning about investments before they hit adulthood. Their expectations for financial services will evolve as they grow up—and banks must adapt to meet this new wave of savvy, self-sufficient consumers.
There’s a lot of information out there, but not really enough creativity. Apps might be part of that solution, but they can’t stand alone.
The un-tapped potential of physical spaces
It’s also the case that the best way to deliver great experiences remains in the physical realm, rather than the digital.
Physical spaces offer something digital tools cannot – personal connection. And in the heavily regulated world of finance, where trust is everything, this is crucial. While generative AI promises to transform customer experiences, compliance and ethical concerns often slow its rollout. Rather than viewing these barriers as limitations, banks can use them as opportunities to rethink how digital and physical experiences complement each other.
AI could play a role in improving the in-branch experience, with the introduction of tools that allow customers to book consultations, identify the best financial products for their needs, or even simulate financial scenarios in real-time.
Bank branches could be re-envisioned as more of a consultative, advisory space, which is much needed: providing clarity over complicated banking terms is something where the industry continues to struggle. For all the talk over (and investment in) apps, most consumers still want to talk to a fellow human when it comes to complex financial instruments like investments and mortgages.
Some banks, like Capital One’s “Cafés” in the U.S., have experimented with creating informal, community-focused spaces where clients can connect with advisors or attend financial literacy workshops, setting a precedent for innovative physical CX.
This isn’t just a trend in the U.S: DBS – Development Bank of Singapore – has been experimenting with the “branch and café” concept for a while now. Netherlands-based bank ING’s took this a step further when they put a restaurant on its Amsterdam campus. How’s that for fostering deeper relationships?!
Make digital experiences meaningful
This is not to say that digital experiences don’t work – and enhancing the customer experience doesn’t necessarily mean employing less technology.
In 2025, AI will increasingly become inseparable from the best-in-class CX – and help banks provide more effective ways to engage consumers. Virtual assistants that provide personalized financial advice to well-timed nudges that help consumers build better financial habits. AI will make digital interactions easier and more fulfilling – which should reduce consumers’ screen fatigue. Consumers clearly welcome the addition of virtual assistants to their banking apps: for example, since its launch in 2018, Bank of America’s virtual assistant Erica has been involved in 1.5 billion client interactions.
It shouldn’t be about driving eyeballs and clicks and time spent in the app, but about redefining the success metrics and creating better experiences that don’t rely on access to a smartphone.
Or, if they do still want to take advantage of devices that have become more cluttered with apps of all kinds, banks can take advantage of ‘super-apps’ to provide a consolidated, unified user experience. With the integration of AI, using banking apps will become more intuitive, ensuring the right features or insights surface at the right time for the user, making the app feel less cluttered. Overall, a more meaningful, satisfying digital experience.
A single platform to manage accounts, credit cards, mortgage payments, and pensions could eliminate the app clutter. Successful super-apps like WeChat and Alipay have demonstrated that integrating services into one seamless experience can help streamline engagement, while allowing users to spend less time in-app.
Help build a better world
Banking’s next frontier is about redefining the relationship between people and their money in a way that’s meaningful, simple, and connected to real life.
Rather than keeping people glued to their screens, help them manage their money in a way that fills the gap, be that in the physical or the digital realm.
Because if a customer’s only useful interaction with their bank is using the ATM, something has gone very, very wrong.
