A recent study indicates that nearly half of U.S. consumers would consider switching to a bank that provides a more personalized digital experience. The survey, commissioned by AI-powered marketing company Persado and conducted by Researchscape, polled over 1,000 U.S. adults in August 2024. The findings suggest banks are failing to meet consumer expectations for personalized marketing, with many consumers—especially younger generations—expressing dissatisfaction with the quality and relevance of banks’ communications.
The survey found that 45% of respondents would contemplate changing banks if it meant receiving a more personalized experience. This preference was especially pronounced among younger demographics, including Gen Z, Millennials, and Gen X, with over half expressing interest in switching for improved personalization. The study highlights consumer sentiment that banks’ communications are overly formal and generic, falling short of engaging customers on a personal level. Specifically, 54% of respondents said their bank’s written communications are only “somewhat, hardly, or not at all” tailored to their individual needs and preferences. Baby Boomers were particularly critical, with 72% feeling that their banks’ messages lacked personalization.
Emotional engagement also appears to be a weak point for banks. According to the survey, 66% of respondents believe their primary bank’s communications are lacking in emotional appeal. This sentiment is even more pronounced among Baby Boomers, 85% of whom stated that their bank’s messages fail to engage them emotionally, followed by 73% of Gen X respondents and 60% of Millennials. Additionally, trust-building efforts seem to be inconsistent, with 45% of those surveyed reporting that bank communications only “sometimes, rarely, or never” positively influence their trust.
Assaf Baciu, President and Co-founder of Persado, commented on the findings, emphasizing that banks lag in their adoption of personalization technologies, despite consumer demand.
“If financial institutions want to be trusted and favored by their customers, there’s clearly much catching up to do. AI has paved the way for banks and card issuers to create highly relevant, engaging, and compliant content. There is little reason for banks to drag their feet on using AI to personalize communications,”
Persado’s Motivation AI platform is currently utilized by some of the largest financial institutions in the U.S., including Ally Bank, LendingClub, and Chase, which leverage the platform to better understand customer intent and create “emotion-informed” copy. According to Persado, its technology has driven an additional $2.5 billion in revenue for financial services organizations over the past five years by using machine learning to optimize communications and boost engagement. Persado claims that its platform’s content outperforms messages created by humans alone 96% of the time.
These findings are part of a broader trend in banking, as financial institutions increasingly explore artificial intelligence for customer engagement. With the financial services industry under growing pressure to adapt to consumer preferences for personalized and digitally engaging services, many banks are investing in advanced AI technologies to remain competitive. Persado’s report, The State of AI in Financial Services Marketing: Expectations, Uses, & Impact, outlines potential AI applications for the banking sector, highlighting how personalization can address unmet consumer expectations.
While Persado’s study illustrates the potential for AI-driven personalization, the degree to which financial institutions will adopt such technology remains uncertain. Privacy and regulatory concerns still present significant challenges for AI implementation in finance, raising questions about data governance and compliance.