The 5-star Treatment: Delivering a Stellar Retail Banking Experience
By: Bob Sterner, National Account Manager
You know the account holder experience is an important part of banking. But do you know just how important it has become? In 2025 and beyond, it’s a strategic necessity — especially while pursuing the coveted Gen Z demographic.
Are your acquisition and retention tactics enough to maintain loyalty at a time when consumers expect to have a seamless, personalized, engaging experience with their financial institution? Let’s find out!
Account holder experience matters
Overall consumer experience is a key differentiator in retail banking. When financial institutions create a positive and engaging environment, loyalty follows:
- 87% of account holders are likely to stay with — and advocate for — a financial institution that makes them feel valued.
In an age where word-of-mouth reviews and personal referrals make all the difference, a positive experience can go beyond just one account.
- However, customer loyalty in banking is declining — only 29% of consumers consider themselves loyal to their primary bank.
This is a recipe for silent churn. Shut the back door on attrition by building a solid foundation, starting on Day 1.
- Greater personalization enhances customer loyalty and Net Promoter Scores (NPS).
In branch-only days, personalized service was the bread and butter of community banks and credit unions. Providing digital experiences tailored to the individual needs of younger generations can help reclaim that advantage.
Gen Z needs to be wowed
Speaking of younger generations, if you’re not offering an account holder experience that impresses the digital-first Gen Z demographic, you may be sinking your own ship. That’s because more than 70% of Gen Z say customer experience is critical in determining their favorite brands, according to an Oliver Wyman Forum survey. And this is a group you don’t want to lose favor with:
- Gen Z will make up one-third of the workforce by 2030.
Their strong spending power and disposable income will be valuable to the financial institutions that can meet their needs.
- 48% of Gen Z worry about not being productive during their leisure time. They’re go-getters. Being slowed down by their financial institution’s subpar digital processes won’t sit well with this generation that likes to get things done.
- The savings rate of Gen Z outpaces any other generation.
25% of this group saves between 11% and 20% of their paycheck every month, which equals deposit growth for the banks and credit unions that can win them over.
However, nearly one-third of Gen Z don’t think banks are meeting their digital service expectations, leaving these young consumers desiring things like enhanced transaction monitoring and virtual credit cards for safer online shopping. If you have an effective account holder experience strategy, this signals a great opportunity.
So, what does Gen Z want, and how can your financial institution deliver?
- They want a seamless digital onboarding
Beyond initial account opening, continual exposure to relevant features (like direct deposit and automatic bill pay) helps Gen Z get the most out of their banking experience.
- They expect their financial institutions to support their financial health proactively.
This points to the need to anticipate account holders’ financial needs and offer personalized solutions, like seasonal budgeting tools or educational material, which can only be done if you utilize your data effectively.
- They want an engaging and intuitive digital experience.
If you want to earn top-of-wallet status, the experience you provide should be similar to their other favorite brands. This means a seamless digital interface, visually appealing platforms and gamified financial tools like digital referral bonuses or tiered debit card rewards.
Meeting these high expectations can only help improve the experience for all account holders, regardless of demographics.
Are your digital strategies meeting expectations?
The future of retail banking depends on delivering a 5-star experience. Community banks and credit unions that invest in data-driven, user-centric strategies, personalized digital solutions and proactive financial tools will thrive in this evolving landscape.
Talk with a Velocity Solutions expert today to discuss your current and future acquisition, onboarding, engagement and retention needs.