Digital-First Users: How Banks Can Transform to Meet the Needs of Modern Customers and Employees

The panel opened by exploring the primary drivers of the digital-first shift in banking. Evolving customer expectations emerged as a major factor, with consumers increasingly demanding seamless, 24/7 access to banking services. Traditional banks are striving to meet these demands, as nearly 88% of customers now prefer online banking.

Other major drivers include cost and efficiency gains, which motivate banks to adopt digital-first strategies to lower operational expenses and allocate resources to high-value services. In a competitive landscape marked by the rise of neobanks, fintechs, and tech companies entering financial services, the urgency for fast, convenient, and user-centric digital solutions has never been greater. To stay relevant, banks must embrace agile, digital-first models.

Insights from an audience poll mirrored these themes, with 32% of attendees identifying the digitalization of banking and financial services as the most influential trend for the next decade. Other notable trends included rising cyber-attack risks (20%) and evolving market dynamics (20%), underscoring the industry’s need to balance digital innovation with robust security and operational flexibility.

The discussion then focused on what it truly means to be a digital-first bank and how this strategy shapes customer experience. The panel emphasized that digital-first banking is more than just adopting new technology; it represents a strategic shift that reimagines each customer touchpoint with digital convenience in mind.

By prioritizing streamlined digital interactions, banks can deliver faster, more reliable service to meet growing demands for accessible and personalized experiences. Notably, research shows that 72% of customers value personalization, making digital-first strategies particularly valuable for fostering deeper connections.

However, the importance of balance was also highlighted. While digital interactions have become essential, many customers still value branch access for complex transactions. About 65% of customers prefer in-person support for intricate banking needs, underscoring the need for a hybrid approach that combines digital efficiency with a human touch to meet diverse expectations.

The panel addressed the challenges of balancing speed, compliance, and customer experience within digital transformation efforts. While speed is crucial for competitiveness, regulatory compliance remains foundational, as non-compliance can lead to significant penalties and reputational risks.

With cyber-attack risks growing—a concern shared by 20% of the audience in the poll—banks must carefully balance agility and compliance to maintain customer trust.

Personalizing and simplifying digital services are also critical for customer retention, with 72% of customers seeking tailored interactions from their banks. Nearly 55% expressed willingness to switch institutions for better mobile banking experiences, underscoring the need for banks to maintain digital agility without compromising on compliance or customer satisfaction.

As technology advances rapidly, banks should avoid the temptation to chase every new trend. Instead, meaningful innovation requires a focus on long-term value. By adopting a purpose-driven approach to technology investments, banks can ensure that new tools align with customer needs and broader organizational goals. For example, advanced analytics for personalized recommendations can provide real benefits to customers rather than simply adopting the latest tech fads.

The panel also encouraged banks to look beyond their own sector for inspiration. Industries like retail and hospitality, which excel in personalization, offer valuable insights for building customer loyalty. By focusing on lasting customer needs and resisting fleeting trends, banks can make impactful investments that resonate with their audience.

In an era of increasing fraud risks, especially within digital and mobile channels, responsible innovation has become crucial. The panel discussed how banks can continue to innovate responsibly while prioritizing security and compliance. AI-driven fraud detection, for instance, was highlighted as a powerful tool for identifying suspicious activity early and strengthening customer trust in digital banking.

With the digital banking landscape becoming more vulnerable, collaborative efforts between banks and regulators are essential to secure customer data. Balancing innovation with stringent security protocols is not only necessary for compliance but also to meet customer expectations in a digital-first world.

As neobanks and other non-traditional players continue to expand their market share, the panel discussed strategies for traditional banks to stay competitive. Neobanks have set new standards in user experience, particularly in streamlined onboarding and customer-centric services. By adopting similar approaches, traditional banks can attract convenience-oriented customers by simplifying account setup and service delivery.

Additionally, many neobanks offer lifestyle products that deepen customer engagement beyond day-to-day banking services. By developing comparable ecosystems, traditional banks have the opportunity to strengthen customer relationships and build loyalty. Embracing agility and a customer-centric approach emerged as essential for banks to meet modern consumer expectations and maintain relevance.

The panel concluded with a clear message: for traditional banks to thrive in a digital-first era, they must embrace customer-centric strategies, balance regulatory demands with innovation, and remain agile amidst competition. These insights underscored the importance of a strategic, forward-thinking approach to digital transformation.

Thank you to our moderator, Theofanis Mesolongitis, and all panellists who contributed to this meaningful discussion. Here’s to continued innovation and transformation in banking!