Why digitization alone won’t save your bank

Ever feel like you’re stuck in a banking balancing act? On one side, you’re constantly looking for ways to lower your cost to serve, and on the other, there’s always the goal of gaining a larger share of wallet. Yet, your legacy systems and siloed operations are throwing you off balance over and over again.

Over the past decade, your bank has likely prioritized digitization. You probably have a solid app that lets customers manage cards, make payments, and handle everyday tasks. That’s great because today’s customers increasingly turn to digital channels for quick, functional tasks. This trend, however, has led to impersonal interactions. Accenture found that many customers find their relationships with banks to be less personal, suggesting that digital channels are functionally correct but emotionally devoid.

To counter this trend, your bank needs to transition from a transaction-focused model to a relationship-driven one. Think of it this way: branches used to be essential touchpoints for building relationships. Now, your digital channels must fulfill that role.

This is where the challenge intensifies: while self-service options handle basic tasks well, customers still seek personalized human support for more complex needs. The idea that digitization alone would solve everything has proven short-sighted. The job is far from done.

Adding to the pressure, McKinsey reports that while the past two years have been highly profitable for banks, the industry’s future isn’t as secure as it seems. Despite healthy revenues and capital, investors are skeptical about long-term growth prospects, reflected in the sector’s low price-to-book ratio. 

What’s more, many banking apps today feel nearly identical. 

To truly succeed, your bank needs to stand out. It’s not the back office systems — like your lean core or AI-driven CRM — that will set you apart; it’s what you do with them that matters most. Your ability to engage the customer and provide exceptional service will differentiate your bank in a crowded market. 

So how do you ensure that your app fosters connections, and how do you build that kind of service at scale?

When we think of good customer service, we often picture service reps stepping in to help. But simply hiring more staff isn’t the solution because it can get expensive fast, and your team still struggles with overloaded, siloed legacy systems. 

Instead of adding more staff, the key is to equip your existing team with the right tools. A unified workspace gives your service reps a complete view of each customer’s journey, enabling them to respond quickly and efficiently. With platforms like Backbase, everything they need — tasks, cases, and workflows — is consolidated into one app. This means your employees can work smarter, not harder, delivering personalized service without overstretching your resources.

This is where Backbase’s Activity Timeline, part of our Human Assist offering, makes a real impact. It brings all customer interactions into a single, easy-to-use interface. Picture a timeline that shows every event — whether it’s login, notifications, campaigns, previous interactions or payments. It gives your team the insights they need at a glance, allowing them to effectively respond to customer issues.

With a related events timeline and smart filters, agents can easily focus on the most relevant events, while extensible data and customizable event details offer a comprehensive understanding of each customer. Together, these features streamline operations and empower your team to deliver personalized service that sets your bank apart. By giving your team the right tools to work efficiently, you can:

• Boost their satisfaction

• Improve your bank’s service quality

• Keep costs in check

   

It’s all about finding that balance — navigating the tightrope of exceptional customer service without losing your footing.

Delighting your customer pays off. A tool like the Activity Timeline is a game changer for both your employees and your customers. By consolidating all customer interactions into a single, unified interface, your team can provide immediate, accurate responses. Customers no longer need to repeat themselves — they feel heard and valued, which enhances the overall customer experience and builds trust.

With a complete view of every customer’s interactions, your service reps can actively identify opportunities for proactive support and quickly catch any suspicious activity. Customers gain peace of mind knowing their bank not only understands their needs but also protects their hard-earned money. When your customer feels secure, valued, and in control of their banking experience, their satisfaction grows, and so does their trust.

What’s in it for your bank? Stronger, long-lasting customer relationships built on trust, leading to better retention, increased loyalty, and long-term growth. And customers will also benefit in many ways, including:

• Accurate, fast  responses: customers get the right answers the first time, reducing frustration and improving satisfaction.

• Personalized service: with a full view of a customer’s history, your service reps can offer tailored support, making every interaction more human and relevant.

• Proactive support: your team can anticipate customer needs with timely reminders and personalized outreach, strengthening relationships and boosting loyalty.

• Enhanced trust: by spotting suspicious activities quickly, like potential account takeovers, your team can act fast to protect customers, building trust in the process.

• Consistent communication: customers will feel like they’re speaking to one entity, with clear, familiar language that aligns with your brand.

   

Integrating tools like the Activity Timeline empowers your bank to exceed customer expectations and stand out in a crowded market. As engagement banking and composable platforms continue to reshape customer experiences, McKinsey predicts that the real winners will be those who deepen relationships with customers and leverage their talent to boost productivity.

It’s all about balance — differentiating your bank while managing costs. The time for transformation is now, and with the right tools, you can become the primary banking relationship for your customers.