Banks are failing at personalization. Here are five steps to take now

July 10, 2025

Executive Summary

• Most banks still rely on financial metrics like FICO scores and miss opportunities to deepen relationships by building customer profiles through behavior-led interactions and progressive insights.
• Industries like insurance and wealth management have successfully leveraged AI-driven personalization without regulatory issues.
• Banks that apply behavioral insights and real-time personalization strategies see three to five times higher conversion rates.

Retail banks have spent decades perfecting the art of offering the right product at the right time, usually through a narrow, transactional lens. Loan preapprovals, credit card offers, and savings account promotions all hinge on financial metrics like FICO scores. But customers today expect more, especially from the institution they consider their primary financial partner.

To earn that role, banks need to do more than assess creditworthiness. They must demonstrate ongoing relevance by supporting customers’ long-term financial goals and building long-term loyalty, not just short-term product uptake.

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