Banks turn to AI and real-time payments amid demand for hybrid services

Core Insights - Maintaining a high Net Promoter Score (NPS) is essential for customer acquisition and retention, shifting focus from mass marketing to network-based advocacy [1][2] - The survey reveals that lower fees and recommendations from friends or family are the primary drivers for customers switching banks, yet only 1.93% of consumers globally changed their main bank in 2025, highlighting the importance of reputation and NPS [2][10] - Financial education is crucial, as many consumers lack confidence in investing, with only 33% investing for retirement and barriers like limited understanding persisting [8][9] Customer Behavior and Preferences - Satisfaction levels in banking drop significantly in areas such as pricing transparency and loyalty rewards, indicating a gap in traditional banks' focus on long-tenure clients [3] - Despite the dominance of online channels for daily activities, over half of consumers still prefer visiting branches for account openings and mortgage applications, particularly affluent clients [6][7] - The paradox of modern banking shows that while digital convenience is standard, personal connection and confidence remain key differentiators [7] Technological Investments - Banks are heavily investing in generative AI and cloud infrastructure to enhance customer support and reduce operating costs, allowing for lower fees and faster services [5] - Real-time payment systems now cover 79% of the global population, but only 19% utilize these systems for both peer-to-peer and retail purchases, indicating a need for broader adoption [11] Payment Models and Security - Open-banking-driven account-to-account payments are gaining traction, especially in regions like Asia-Pacific and the Middle East, enabling instant settlements and faster access to funds for merchants [12][13] - Security remains a critical factor in mobile payment adoption, with 30% of non-users willing to adopt mobile wallets if they offer better security than traditional methods [17] - The rise in financial fraud, with 28% of consumers affected in 2025, emphasizes the need for banks to implement advanced AI-based detection and consumer education [19][20] Strategic Imperatives - The report emphasizes that success in 2025 will depend on balancing automation with authenticity, as consumers expect personalized service while ensuring the safety of their money and data [21] - Institutions that achieve a balance of responsible data use, fair pricing, financial education, and secure transactions will lead the next phase of global banking transformation [22]