The CX revolution in financial services: how banks can turn CX into a revenue engine

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In the world of financial services, the link between customer experience (CX) and revenue is no longer up for debate. The message is clear: CX is no longer a support function. It’s a growth engine. Bank of America’s Q3 2024 earnings prove this point, with the bank directly crediting its revenue growth to targeted CX improvements. But while some institutions are winning the CX game, many others are falling behind—and fast.

Across the U.S., banking CX quality has declined for three consecutive years. The result? Customers are walking away. One report indicates that one in five customers leaves their financial institution due to poor experiences. A staggering 64% of consumers are ready to switch brands after just one bad interaction. And worse, more than half of the customers are unsure if they will remain with their current bank over the next year.

In this blog post, we’ll explore how banks and credit unions can future-proof their CX strategies, what they can learn from digital disruptors like Revolut, and why blending technology with human connection is the formula for loyalty and lifetime value.

A crisis of confidence: the root of customer frustration

The core issue is simple but often overlooked: customer effort is still too high. Zingly’s 2025 survey revealed that 71% of people find interacting with customer service just as stressful, if not more so, than the original problem. This fear of reaching out—FORO (Fear Of Reaching Out)—is amplified by long wait times, repetitive explanations, and endless call transfers.

Meanwhile, the digital revolution is in full swing. More than half of banking customers now use mobile apps as their primary interaction channel—a jump of 18 percentage points in just three years. Customers average over 150 mobile banking interactions annually. That’s 150 chances to either build trust or break it.

Yet many financial institutions continue to deploy automation with the wrong intent—to cut costs, not to enhance service. This flawed approach turns CX into a liability instead of an opportunity.

Learning from Neobanks: the Revolut example

Neobanks, born in the digital age, are rewriting the rules of customer experience. Take Revolut, for example. What started as a no-frills currency exchange app is now a global financial super-app with over 35 million users. The secret? Frictionless, personalized, and mobile-first CX.

What Revolut gets right:

• 24/7 in-app support: customers get help when they need it, directly within the app, without switching channels.
• Smart personalization: from real-time budgeting tips to custom rewards, Revolut tailors experiences based on spending habits.
• Transparent design: everything from fees to transaction histories is laid out, reducing cognitive load.

Revolut proves that exceptional CX isn’t a nice-to-have—it’s the foundation of competitive differentiation in financial services. Traditional banks can no longer afford to be CX laggards.

Designing a CX model that builds loyalty

A modern CX strategy must be personalized, omnichannel, human-backed, and AI-optimized. Here’s how financial institutions can make it happen:

1. Blend automation with a human touch

Only 25% of consumers trust AI for financial decisions. So, while bots can handle balance inquiries or transaction histories, human agents must be easily accessible for more complex needs. More than 60% of consumers will abandon a brand if they can’t talk to a person when they need to.

• Smart escalation: chatbots should seamlessly hand off to live agents, preserving context.
• Agent assist: AI tools should summarize conversations, suggest knowledge base articles, and prep agents with the customer’s journey.

2. Create a unified customer journey across channels

Mobile apps, websites, call centers, email, and in-branch services must offer consistent and coherent experiences. Customers should never have to repeat themselves when switching channels. Context must follow the customer.

• Centralized data hubs: build systems where customer history is accessible across departments.
• Omnichannel orchestration: let customers start a process on one channel (say, mobile) and complete it on another (like in-branch) without losing progress.

3. Turn data into proactive experiences

With mobile touchpoints and transaction data flowing in, financial institutions have a goldmine of insights. The key is using it proactively, not reactively.

• Predictive analytics: spot dormant accounts before they churn. Identify users eligible for upsells or who may need support.
• Personalized nudges: send messages tailored to user behavior, like investment tips based on savings patterns or credit-building suggestions after a missed payment.

CX as a profit center: from cost avoidance to value creation

Many banks still view CX improvements as an operational cost. But leading institutions recognize them as revenue drivers. Happy customers open more accounts, purchase more products, and refer others. A strong CX strategy isn’t just retention—it’s a growth channel.

• Cross-sell & upsell: personalized CX increases the likelihood of product adoption.
• LTV boost: reduced churn and higher satisfaction drive long-term revenue.
• Brand advocacy: great experiences translate to customer referrals and NPS growth.

Barriers to change: why banks struggle to evolve

Traditional financial institutions face real constraints:

• Legacy systems: many are built on outdated tech stacks that don’t support modern CX tools.
• Regulatory complexity: compliance requirements slow down digital experimentation.
• Data silos: disconnected departments hinder omnichannel experiences.

But these barriers are not insurmountable. Incremental innovation—like layering AI over legacy systems, or piloting new CX models in specific segments—can deliver results without risking disruption.

Key technologies powering next-gen CX in banking

To meet rising expectations, financial institutions must embrace:

• AI-powered support platforms: automate basic tasks while helping agents resolve complex cases faster.
• Customer data platforms (CDPs): unify data across channels for a 360-degree customer view.
• Behavioral analytics: track and respond to individual journeys in real-time.
• Voice AI: use natural language processing to make phone-based support faster and smarter.

These technologies must be deployed with empathy, transparency, and a clear focus on enhancing the customer journey.

What’s next: CX as the heartbeat of financial services

In an industry built on trust, CX is the new competitive moat. Customers want financial partners who are responsive, respectful of their time, and mindful of their needs. Banks that deliver experiences rather than just transactions will win not just market share, but customer mindshare.

As neobanks like Revolut continue to redefine what’s possible, traditional institutions must respond—not just with technology, but with a complete shift in philosophy. CX is no longer the job of a single department. It is the organization’s mission.

Final takeaway

The formula for modern CX success in banking is simple, but powerful:

Low effort + high personalization + seamless human & AI support = High loyalty and lifetime value.

It’s time for banks to stop asking what CX can do for their support metrics and start asking what it can do for their growth strategy.