The future of digital branch banking: How fintech is redefining customer experience
Traditional branch banking has undergone significant transformations in recent years as advanced technologies in online banking and fintech innovations are becoming widely adopted.
As the use of fintech grows, this technology is increasingly shaping how customers interact with their chosen financial institutions and redefining how they benefit from their banks’ services.
According to Statista, there has been a notable increase in fintech users worldwide. This is particularly true for digital payment users, with the global user base reaching more than 3 billion in 2024. While the data shows that digital banking is becoming a mainstay, branch banking will still be a key component of banking in 2025.
Thus, the branch banking model is being updated to align with the preferences of experience—and tech-focused audiences. The future of banking will also encompass functional fintech technologies, which promise to redefine the customer experience in unprecedented ways.
The transformation of banking services
Microsoft’s Digital Banking Report 2022 shares valuable insights into how financial institutions are adapting their offerings to meet shifting customer needs. The report notes that banks are making vast changes with the aim of enhancing their customer experiences. These changes also intend to increase engagement across numerous channels.
The role of bank branches is central to this topic. Organisations are now focusing on creating tech-based, integrated banking ecosystems and multichannel services. The integration of large data sets and applied analytics is also proving vital. This enables customers to choose when, where, and how to engage with their financial providers and offers great flexibility while still granting access to consistent service.
According to Microsoft, banking customers began to gravitate away from using physical bank branches prior to 2020. This trend was driven by increased adoption of time-saving digital banking tools across all age groups.
The movement has not eliminated the functionality of physical branches. Instead, it has prompted banks to reassess the delivery of their services through models like digital branch banking.
Today’s bank customers seek ongoing value throughout their engagement with their banks. Institutions are responding by using fintech to deliver exceptional customer experiences, both digitally and in the real world.
Key trends for the future of fintech-based digital branch banking
Fintech is driving a number of changes in how customers experience banking in the 21st century. These trends are set to form the foundations of banking services in coming years.
Omni-channel services and experiences
Bank branches are rapidly becoming versatile digital hubs that allow customers to switch seamlessly between digital and offline services.
Digital bank branch tools make it easy for customers to perform various actions through their preferred platforms. They can access digital forms and services, online accounts, and responsive support in real time, even when a human representative is not available.
More efficient and flexible branches
Physical bank branches are being updated to support more digital service offerings and functions. This results in streamlined, efficient operations and a more flexible customer experience.
Features like collaborative client spaces, private meeting areas, and digital support desks allow consumers to visit banks fluidly and comfortably. These additions also allow branch staff to offer more personal and intuitive assistance.
Personalisation for customer engagement
Personalisation has become an essential consideration for any organisation looking to engage its customers today. This is no different for banks, and personalised services are becoming a mainstay of the branch banking experience.
Financial institutions use data analytics, customer behaviour, and preference insights to customise their offerings to each individual’s needs. Financial solutions, products and advice are now personalised to create a more convenient and individualised experience.
Tailored financial wellness advice
Everyday transactions are continuing to shift towards digital platforms. Bank branches are responding by offering omni-channel services designed to add value for their clientele.
Services like financial wellness indicators and apps, financial planning advice, and educational finance courses and articles help personalise the customer experience and retain the attention of clients of all ages. Some banks also offer budgeting, retirement planning, and saving advice to support their customers’ individual financial goals.
Fintech, virtual reality and AI tools are appearing in more physical and digital bank branches than ever before.
These tools serve multiple purposes:
- They provide a more novel and immersive experience for customers
- They streamline operations and service delivery for more efficient customer service
- Features like AI-based support chatbots assist customers with general enquiries. They reduce wait times and lead to more client satisfaction overall.
The banking experience redefined
The data is clear: fintech is having significant, far-reaching impacts on digital branch banking and beyond. As fintech banking tools become more widely used, customers’ interactions with their banks will continue to be transformed.
Seamless omni-channel service delivery, engaging customer experiences, and personalised strategies like conversational banking will define the future of banking. These factors work together to create more efficient, inclusive, and accessible financial services for all.