Elevating Customer Engagement in Banking

by Laura Burrows 4 min read October 28, 2025

At A Glance

Delivering a superior customer experience has become the key goal for nearly every business across almost every industry. The banking industry is no exception. Discover why customer engagement in banking is crucial for building loyalty and fostering long-term trust.

Delivering a superior customer experience has become the key goal for nearly every business across almost every industry. The banking industry is no exception.

A recent trend highlighting the importance of customer experience is the drop in customer loyalty. Customer expectations are higher than ever, heightening competition between traditional banks and newer market entrants. This creates a need for banks to stand out and succeed by offering a superior customer experience. That experience starts with customer engagement in banking.

According to a recent Forrester study, only two out of 10 retail banks regularly engage with customers to enhance their experience. The same study found that when retail banks consistently focus on improving the customer experience, they tend to grow more than three times faster than their competitors that do not. Forrester also found that over 70% of retail banks consider digital customer engagement essential for their current success and future growth.1

The key to customer engagement in banking: understanding the customer

The good news for banks is that when they engage with customers by offering the services and guidance they want, those customers tend to respond with increased loyalty. Research indicates that 54% of customers rely on their banks to help them achieve their financial objectives. Most encouragingly, this same research indicates that 71% of actively engaged customers are likely to stay with their bank for the foreseeable future.2

At the heart of today’s evolving efforts to retain customers and build stronger loyalty are innovative tools that deliver on consumer demand for greater personalization and digital experiences in day-to-day engagement with the bank.

With rising interest rates and more choices in financial services, consumers are actively seeking better rates for savings accounts, loans, and credit products. A 2024 Salesforce survey reveals that 72% of consumers are motivated to switch providers in search of better deals.3 Another report indicates that 50% of banking customers expect personalized offers for tools, products, and services to help them achieve their financial goals.4

In response to this trend, banks have an opportunity to go above and beyond to attract and retain customers by focusing on delivering exceptional customer service, innovative product offerings and personalized solutions to prevent customer churn. This requires embracing innovative approaches to engagement. For example, banks can leverage customer engagement services that empower customers to better manage their financial well-being. Such services might include smart tools that provide timely alerts and reminders, enabling customers to avoid delinquency and stay current with their payments.

Strategies for enhancing engagement

Banks aiming to enhance customer engagement can achieve this by utilizing data-driven insights, innovative technologies and customized partner solutions to foster loyalty and long-term trust. Customer engagement strategies should consider the following:

  • Omnichannel experience – Banks aim to deliver a seamless, consistent experience across all touchpoints, whether it is a branch, mobile device, online platform, or contact center. Customers should be able to start an interaction on one channel and finish it on another without any friction. Connecting physical and digital touchpoints builds trust, convenience, and loyalty.
  • Financial wellness tools and empowerment – Banks can utilize customer engagement services to provide customers with smart financial management tools, including budgeting dashboards, automated savings features, credit score monitoring, and investment advice. Providing customers with real-time insights into their financial health enhances engagement and fosters long-term loyalty.
  • Customer education and financial literacy – The bank can engage customers through educational content like webinars, tutorials, and in-app tips that help clarify financial products and promote better decision-making. Educated customers tend to be more confident, satisfied, and more likely to expand their relationship with the bank.
  • Personalization through data and analytics – Banks can utilize data to deliver highly personalized recommendations, product offers, and experiences specific to individual life stages, behaviors, and goals. Predictive analytics can forecast needs, such as suggesting mortgage advice when spending and savinghabits indicate a possible interest in homebuying, thus improving relevance and connection. It can also alert customers about savings opportunities. This kind of proactive engagement helps build stronger relationships.

Customer engagement services: the key to driving revenue growth and enduring relationships

At Experian®, we offer world-class customer engagement services that can enable banks to meet customer expectations and build stronger, long-lasting relationships.

By providing tailored financial services and credit education, banks can help customers reach their financial goals. At the same time, banks can build stronger trust by empowering customers to avoid risks and take action to recover when identity theft occurs. All our solutions can be smoothly integrated into a bank’s existing ecosystem, making it quicker and easier to deliver these services to customers. As banks continue to seek ways to deliver exceptional customer experiences, it is essential to offer innovative tools and services that better engage customers. Customer engagement in banking is crucial for attracting and retaining clients.

When banks go the extra mile to meet the evolving needs of customers, they are repaid with greater loyalty and long-term trust.


1https://www.kameleoon.com/blog/18-stats-understand-future-cx-optimization-and-banking
2https://www.postgrid.com/customer-engagement-strategies-banking/
3https://www.experian.com/content/dam/marketing/na/thought-leadership/business/documents/infographic-fostering-relationships-to-unlock-growth.pdf
4https://www.experian.com/content/dam/marketing/na/thought-leadership/business/documents/infographic-fostering-relationships-to-unlock-growth.pdf

Related Posts

Cash Flow Insights: Powering the Next Evolution in Lending

For decades, credit data has given lenders a trusted foundation for assessing risk. Now, consumer-permissioned cash flow data is adding another layer of insight into consumers’ financial lives, including income, spending, liquidity and changing financial obligations. The opportunity is significant. Nearly one in five consumers lacks access to or has damaged credit. New Experian research also shows that 60% of consumers who have previously been denied credit or received less favorable terms than expected believe the outcome would have been different if lenders had considered their recent income and banking activity alongside their credit history. 1,2 For lenders, cash flow insights can provide additional context about a consumer’s financial capacity and support more informed underwriting decisions. The next challenge is making those insights easier to use consistently and responsibly at scale. What are cash flow insights? Cash flow insights are derived from consumer-permissioned banking data and provide visibility into how money moves into and out of a consumer’s accounts. Depending on the information available, cash flow data can provide insight into financial behaviors such as: Income and income stability: Regular and irregular income streams and changes over time Spending and recurring expenses: Everyday spending patterns and ongoing financial obligations Account balances and liquidity: Available funds and changes in account balances Debt obligations: Loan payments and other recurring debt commitments Cash flow patterns: How money moves into and out of accounts over time Traditional credit information provides a rich history of how consumers have managed credit. Cash flow insights add context about their current financial activity and capacity, providing lenders with a more complete view of financial health. Cash flow insights can also add predictive value to risk assessment. Experian analysis shows Cashflow Score can deliver up to a 25% lift in predictive performance over conventional credit scores when tailored to targeted risk tiers.3 How lenders can put cash flow insights to work at scale As interest in cash flow insights grows, the conversation is moving beyond what the data can reveal to how financial institutions can use it consistently and responsibly. That requires standardized consumer reporting, clear governance and decision-ready insights that can work within established lending processes. The launch of Experian Cashflow Data Bureau at Vision 2026 reflects this shift from access to adoption. The new consumer reporting agency operates under the Fair Credit Reporting Act (FCRA) and is designed to help financial institutions adopt consumer-permissioned cash flow insights at scale. A key part of that foundation is the cash flow consumer report, which organizes consumer-permissioned banking information into a standardized consumer report regulated under the FCRA. This gives lenders a consistent foundation for incorporating cash flow information into lending decisions while providing consumers with access to the information in their report. Turning greater visibility into better decisions The next evolution in credit isn’t about choosing between traditional credit and cash flow data. Each provides a different perspective. Traditional credit information offers deep insight into how consumers have managed credit over time. Cash flow insights can add context about financial activity and capacity. Bringing those perspectives together can give lenders greater visibility into consumers’ financial health and help them better distinguish between risk and resilience, support more informed decisions and identify opportunities to responsibly expand access to credit. As cash flow adoption continues to grow, its value will come from how effectively it complements the information lenders already use. The opportunity isn't simply to see more data. It's to turn that additional visibility into smarter, more informed decisions. Explore how Experian Cashflow Data Bureau is helping financial institutions put consumer-permissioned cash flow insights into practice at scale. Learn more [1] Federal Reserve Bank of New York, The Market for Credit Building: Demand, Product Characteristics and Consumer Uses, 2026. [2] Experian commissioned Atomik Research to conduct an online survey of 2,000 U.S. adults age 18+. Fieldwork took place July 16–21, 2026. Margin of error: +/- 2.2 percentage points at a 95% confidence level. [3] Based on Experian analysis when Cashflow Score is compared with conventional credit scores, tailored to targeted risk tiers. Predictability based on KS.

October 14, 2026 by Julie Lee
The Three Onboarding Fraud Pain Points That Slow Growth (And How to Solve Them) 

Effective fraud prevention is critical to balancing security and customer experience during onboarding. Learn more!

October 12, 2026 by Charles Hunter
How Rental Data Is Expanding Financial Opportunity for Millions of Renters 

Discover how rental payment reporting can expand credit access, strengthen credit profiles and improve risk assessment for renters and housing providers.

October 8, 2026 by Manjit Sohal

Subscribe to our Newsletter

Enter your name and email for the latest updates.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Subscribe to our Newsletter

Don't miss out on the latest industry trends and insights!
Subscribe