How Building and Sustaining Trust Has Become Paramount in the Digital Age
A new report from Qualtrics on global consumer trends looks at the continued erosion of trust in banks and financial institutions among consumers. Despite a widespread industry belief that new personalization technologies can reverse that trend, there are some indications that digital tech, including AI, may make the problem worse, not better.
By David Evans, Chief Content Officer
The report: 2025 Global Consumer Trends Report
Source: Qualtrics
Executive Summary
Qualtric’s 2025 Consumer Trends Report paints a challenging landscape for retail banking, with customer loyalty becoming increasingly difficult to sustain. Based on responses from 23,730 consumers across 23 countries, the research shows that trust in financial institutions has declined marginally to 73% (-1.2% from 2024), while customer satisfaction holds at 76%. But the report definitively indicates that "need-to-have" industries like banking can no longer rely on customer inertia, as expectations set by other sectors are reshaping what customers expect from their financial institutions.
However, the data also reveals clear opportunities for banks to strengthen customer relationships through improved communication, thoughtful AI implementation, and balanced personalization strategies.
Key Takeaways
- Trust is now the primary driver of customer loyalty, with 61% of consumers prioritizing trustworthy information above all other factors in company interactions
- Poor communication is the second-leading cause of negative experiences across industries, cited in 45% of cases
- Customer feedback through traditional channels has declined significantly, with direct feedback to companies dropping 7.7 percentage points since 2021
- While 64% of consumers prefer personalized experiences, 53% are highly concerned about data privacy, creating a critical balance challenge for banks
- Consumer comfort with AI has decreased 11 percentage points since 2024, but acceptance increases significantly when specific benefits are clearly explained
What we liked about the report: Like all Qualtrics research, it is reassuringly rigorous, with a large survey population and a longitudinal perspective.
What we didn’t: The report’s analysis of the weakness of traditional techniques for measuring consumer sentiment is a touch self-promotional.
Trust and Communication Are Foundation of Success
The research definitively shows that trust has become the cornerstone of customer relationships in 2025.
For retail banks, this translates into a clear mandate: Focus on reliable communication and consistent delivery of services before pursuing innovative features. Customers prioritize trustworthy information (61%) far above interaction speed (46%) or convenience (44%). Banks must ensure their marketing promises align with actual service delivery, as mismatches quickly erode trust and drive customers to competitors.
This emphasis on trust requires a fundamental shift in how banks approach customer communications. The data shows that clear, proactive communication about service changes, fee structures, and policy updates can significantly impact customer retention.
When banks fail to communicate effectively, it becomes the second most common reason for negative experiences (45% of cases). This suggests that banks should invest in developing comprehensive communication strategies that span all customer touchpoints, from mobile apps to branch interactions.
Traditional Feedback Channels No Longer Tell the Full Story
A significant shift in customer behavior reveals that traditional voice-of-customer programs need reimagining. With direct feedback to companies dropping nearly 8 percentage points since 2021, banks must diversify their listening strategies. This includes monitoring social media, analyzing operational data, and leveraging AI-powered analytics to identify patterns in customer behavior. The goal is to capture insights from customers who are increasingly likely to leave silently rather than complain.
Stewing in silence Fully 24% of customers now choose not to tell anyone about negative experiences, up 6.3 percentage points since 2021. This "silent exodus" presents a particular challenge for banks, as traditional metrics may mask underlying problems until they manifest in customer attrition. Forward-thinking banks need to respond by implementing comprehensive listening programs that combine direct feedback with indirect signals, such as transaction patterns, digital engagement metrics, and social media sentiment.
Dig deeper:
- If Customers Don’t Trust Your Ads, They Won’t Trust You
- The Personalization Paradox: Can Banks Delight Customers Without Creeping Them Out?
- It’s Time for Banks to Shift to Trust-Centered Customer Relationships
Navigating the AI and Personalization Balance
The report also highlights a complex relationship between customers and technology. While comfort with AI has declined 11 percentage points since 2024, success stories emerge when banks focus on specific benefits rather than the technology itself.
For example, demonstrating how AI can reduce wait times for customer service or enable faster transaction processing significantly increases acceptance. Similarly, while 64% of customers want personalized experiences, 53% have serious privacy concerns. Banks must carefully balance these competing demands by being transparent about data usage and giving customers control over their information.
The Qualtrics data reveals that consumer trust in an organization significantly impacts their comfort with AI and data sharing, showing an 11-percentage point increase in comfort levels among those who trust the organization. For banks, this suggests that building trust through transparent communication about AI and data usage should precede the rollout of new technological initiatives. The research also indicates that consumers are most receptive to AI when it enhances rather than replaces human interaction, with 51% expressing concerns about losing human connection.
Evolving AI Concerns Customer concerns about AI have shifted significantly over the past year. While general anxiety about AI has increased, specific concerns vary:
- 51% worry about losing human connection (+2.1% from 2024)
- 44% are concerned about job losses (-0.8%)
- 43% fear misuse of personal data (-0.9%)
- 41% worry about poor quality interactions (-4.3%)
- 29% are concerned about increased effort in interactions (-1.2%)
For banks, these trends suggest that AI implementation strategies should emphasize how the technology augments rather than replaces human service. The declining concern about interaction quality (-4.3%) indicates growing acceptance of AI for routine transactions, presenting an opportunity for banks to automate simple processes while reserving human interaction for more complex or sensitive matters.
The Personalization Paradox
The report also reveals a striking paradox: while 64% of consumers prefer personalized experiences, trust in organizations to handle personal data responsibly remains low at 26%. This creates a particular challenge for banks, which need detailed customer data to provide relevant financial services and products. The solution lies in what the data shows about consumer preferences:
Transparency in Data Usage
- Customers are 1.7x more likely to share data when they understand exactly how it will be used
- Clear opt-in/opt-out options increase comfort with data sharing by 42%
- Regular updates about data usage increase trust by 38%
Value Exchange
- 72% of customers are willing to share data when they receive clear value in return
- Financial insights and personalized product recommendations are the most valued benefits
- Real-time fraud detection and security features justify data collection in customers’ minds
For banks looking to balance AI and personalization effectively, the research suggests a three-tiered approach:
1. Foundation Level: Trust Building
- Establish clear data governance policies
- Communicate AI usage transparently
- Provide granular privacy controls
- Demonstrate concrete benefits of data sharing
2. Implementation Level: Hybrid Service Model
- Use AI for routine transactions and initial customer service
- Ensure seamless handoff to human agents for complex issues
- Implement AI-powered fraud detection and security measures
- Deploy personalization features with clear opt-in processes
3. Advanced Level: Predictive Services
- Leverage AI for proactive financial advice
- Develop personalized product recommendations
- Create early warning systems for potential financial issues
- Offer customized financial education and planning tools
Editor’s note: This article was prepared with AI language software and edited for clarity and accuracy by The Financial Brand editorial team.
