Future-proofing Digital Banking

AI is currently reshaping internal banking processes – but cautiously. According to Dominik, most banks are still in the pilot phase, focusing AI efforts on the mid-office: supporting customer service representatives, summarizing documents, or improving efficiency in compliance-heavy tasks.“Can I gain efficiency in customer service? Can I gain efficiency in document-heavy processes?”

Despite the buzz, AI hasn’t yet fully reached the customer interface, largely due to trust and regulation. Dominik believes that consumer trust in AI will be earned outside the banking sector, through everyday use in other areas first: “Trust will be built elsewhere first… when people use it daily and see it helps, only then will they trust it in banking.”

There’s strong potential for AI in fraud detection, but regulatory frameworks require explainability—banks must be able to justify decisions made by algorithms.

Open Banking is making waves in Europe, driven by PSD2 and now FiDA. Switzerland, by contrast, has adopted a market-led approach, leaving it to banks and consumers rather than enforcing it through regulation. Dominik frames Open Banking as a step toward empowering customers to control their own financial data: “Your data belongs to you. And that includes your banking data.”

Momentum is expected to grow in Switzerland as practical use cases – like consolidated account views – begin delivering real value.

As transactions and self-service become fully digitalized, banks now face a bigger challenge: emotional engagement. How can they build meaningful relationships with their customers—especially through digital channels?

Fintechs like Yonder in the UK, build lifestyle ecosystems around credit cards, helping users discover restaurants and events. Banking becomes a secondary, background function, it’s no longer at the forefront. Klarna, for example, embeds payment services into a shopping experience that feels both natural and emotionally resonant.

Gen Z finds banking boring and complicated. Financial institutions do not target the younger generations effectively with relevant services or engaging experiences. Topics like financial literacy, gamification, and shopping integration remain underexplored. Often to open a simple bank account, a lot of paperwork is still required.

Banks are caught between two priorities: current profitability and future relevance. “Banks have to bridge where they earn money today versus where their future audience lies.” AI is a potential bridge creating simpler, more intuitive products for digital natives.

Relevance in digital banking isn’t just about tech, it’s about people. “How can we bring technology and customer needs together?” To remain future-proof, banks must build on the promise of AI, leverage the power of Open Banking, and emotionally connect with younger generations with a people-centric mindset – not just with smarter tools, but with smarter experiences.

If your bank is interested in partnering with an experienced third-party provider, speak with our experts to see how G+D Netcetera could help.