Banks increasingly recognize that customers expect seamless digital experiences that fit naturally into their everyday lives. Mobile banking apps and online services have made it easier for people to manage finances, check balances, transfer money, and access financial products without visiting branches. However, customers are looking for more than just transactional capabilities. They want guidance, education, and support that helps them make informed financial decisions. Banks that provide these additional services can strengthen customer relationships, increase trust, and encourage long-term engagement.
Enabling banking customers to make more of their money online
In this report we discuss our recent research into online money management.
The most successful banks and financial providers have improved their services by focusing on customer experience and creating well-designed apps that let people do their banking alongside their day-to-day activities.
Despite this, our research shows that it’s not enough to stop there. Digital engagement has accelerated during the pandemic and 44mn customers now have baseline capabilities in managing their money online. However, when it comes to engaging with new, more complex product types, people lack the financial knowledge they need to make confident decisions with 62% of people looking elsewhere other than their bank for advice. By not educating customers, banks are missing an opportunity to build relationships, improve financial maturity and increase product and service uptake as a result.
If financial organisations want to create long-term value from both new and existing customers, they need to find a way to educate them about their financial lives and the products and services that can meet their changing needs. To do this in a way that builds trust, rather than compromising it, is a challenge.
In this report we discuss this issue, our findings and provide clear pointers for banks wanting to build even more meaningful relationships with their customers.
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Research suggests that many customers lack confidence when navigating complex financial products and often turn to external sources for financial education and advice. This indicates a gap between banking services and customer expectations regarding financial literacy support. When banks fail to provide accessible educational resources, customers may seek information elsewhere, reducing opportunities for banks to build trust and strengthen relationships. Providing clear guidance and educational content can help financial institutions become more valuable partners in customers' financial journeys.
Banks can improve customer understanding by creating educational resources that explain complex financial concepts in simple language. Interactive tools, learning hubs, calculators, videos, and personalized recommendations can help customers make more informed financial decisions. Effective education should be integrated throughout the customer journey rather than presented as a separate resource. Customers benefit when financial guidance is available at the moment they need it, helping them understand products, risks, and opportunities more clearly.
Trust is one of the most important factors influencing the adoption of digital financial services. Customers need confidence that financial institutions are providing accurate information, protecting their data, and acting in their best interests. Banks that prioritize transparency, customer education, and user-friendly experiences can strengthen trust over time. Trust not only improves customer retention but also increases the likelihood that customers will adopt additional products and services.
Educated customers are more likely to make confident financial decisions, engage with products more effectively, and recognize the value of financial services offered by their bank. This creates benefits for both customers and institutions. Improved financial literacy can lead to stronger customer loyalty, increased product uptake, and more meaningful long-term relationships. Banks that position themselves as trusted financial educators can differentiate themselves in an increasingly competitive market.
Digital banking tools can provide customers with greater visibility into their spending habits, savings goals, and overall financial health. Features such as budgeting tools, spending insights, savings recommendations, and personalized financial guidance enable users to make more informed decisions. By presenting relevant information at the right time, banks can help customers better understand their finances and take action to improve their financial wellbeing. These tools transform digital banking from a transactional service into a valuable source of ongoing financial support. As customer expectations continue to evolve, effective digital experiences can strengthen engagement, trust, and long-term loyalty.