Why AI Won’t Replace Bankers but Will Expose the Bad Ones
By Caroline Hroncich, Contributor at The Financial Brand
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Executive Summary
- Banks are shifting from selling products to building relationships, using data and AI to create experiences that feel personal, contextual and human.
- Industry leaders like Huntington and KeyBank are blending technology with empathy, empowering employees to turn insights into trust and value for customers.
- The future of banking depends on continuous personalization that uses data responsibly, balances automation with transparency and keeps people — not algorithms — at the center.
Banking is no longer about products — it’s about people.
As consumers grow accustomed to the tailored experiences offered by streaming platforms and e-commerce giants, they increasingly expect the same level of personalization from their financial institutions. The days of one-size-fits-all checking accounts and broad marketing campaigns are over.
To stay competitive, banks must deliver experiences that feel personal, contextual and indispensable — using data and technology not just to automate, but to anticipate and empathize.
Across the industry, leaders are finding new ways to blend analytics, artificial intelligence and human insight to create banking relationships that feel less transactional and more transformational. For years, banks have talked about hyperpersonalization — the idea of using data to tailor products and messages to each customer’s unique needs. But as AI matures, that concept is evolving into what Richard Winston, global industry lead for Financial Services at Slalom, calls “continuous personalization.” Rather than sending the right offer at the right time, banks are starting to use AI tools to constantly interpret customer behavior, refine insights and guide human interaction in real time.
“It might pick up on a client saying ‘I’d really like to do something for my grandkids.’ Then it might suggest creating a college fund for them,” Winston says. “It’s a way to really personalize the experience and sustain that personalization over time.”
Think of it as personalization in motion: AI tools help frontline staff read sentiment during a call, suggest next-best actions, or identify subtle shifts in a customer’s goals — while employees apply discernment and empathy to turn those insights into trust. It’s not about replacing humans with algorithms, Winston says — it’s about creating smarter, more responsive partnerships between people and machines that keep personalization alive at every touchpoint.
For community banks and credit unions, delivering personalized experiences isn’t just a nice-to-have, it’s how they stay relevant against fintechs and megabanks with deeper pockets and bigger tech stacks. So how are banks rising to the challenge? By rethinking the customer experience, using data and AI to make every interaction more personal and more valuable.
Want more insights like these? Check out MX’s content hub: Data in Action
Not Just an Initiative, a Core Strategy
Huntington National Bank views personalization not just as a data initiative, but as a core part of how it engages with customers. The bank uses transaction and behavioral data to uncover customer needs and then designs solutions that address those needs. Brant Standridge, the bank’s senior executive vice president and president of consumer and regional banking, says Huntington’s goal is to be “indispensable” to its customers.
“I think any customer would desire to know that their partner at the financial institution really understands them specifically and understands their needs,” he says. “The more personalized the products and advice that you can provide, the more meaningful you’re going to be to that customer.”
One example is Huntington’s Caregiver Banking product, designed for people who manage finances on behalf of loved ones — such as aging adults, individuals in recovery, or those with disabilities. Developed in partnership with fintech firm True Link, the product includes specialized card controls that allow caregivers to securely manage accounts while maintaining the independence of those they support.
The bank developed this product in response to insights from both customer data and broader consumer research on caregivers — an important segment, with 63 million Americans serving in caregiving roles, according to AARP.
Huntington extends its personalization strategy beyond data, by providing training for branch and contact center teams, helping employees structure conversations that consistently provide value to customers. The bank is also integrating AI and technology across its operations: simplifying SBA loan applications, developing assistants that guide customers through complex forms and creating tools that provide actionable financial recommendations in real time.
Standridge emphasizes that the goal is not just automation, but practical support — AI solutions that allow customers to manage their finances more efficiently while maintaining the human touch that makes interactions meaningful.
Personalization in Practice: An Omnichannel Approach
KeyBank emphasizes using customer data to guide meaningful, timely experiences. Jeannie Fanning, who leads client communications and personalization initiatives, says KeyBank focuses on creating moments that feel relevant, not robotic. That means using behavioral cues — such as ATM usage, benefit engagement, or account activity — to surface insights customers can act on immediately. For example, if a client consistently uses out-of-network ATMs, KeyBank may send a personalized message reminding them of its 55,000 free ATMs nationwide.
“We have a blend of things that are very specific and are advice based, some things that are a bit more fun,” Fanning says.
Omnichannel delivery is critical, Fanning adds. If a client regularly visits a branch, their banker may follow up on a digital message with a personalized conversation. Others might prefer an email, a push notification, or a text. The message remains consistent; only the medium changes.
This strategy helps customers feel known — without feeling surveilled. “People don’t like to feel like they’re being monitored,” Fanning notes. The secret is to use data transparently and tactfully, ensuring communications feel helpful, not intrusive.
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KeyBank also adds a layer of playfulness to digital interactions. A celebratory message when a customer hits a savings goal or logs in on their birthday, for example, adds personality to the experience. These small touches create emotional resonance — the kind that builds loyalty in an increasingly digital world.
Training is also essential. KeyBank invests heavily in micro-learning, simulations and peer-led demos to ensure bankers know how to translate data into human connection. It’s not enough to have the insight; you need people who know how to act on it authentically.
Sustaining Personalization Across Every Interaction
To make personalization meaningful, banks must move beyond one-off campaigns and build connected systems that keep customer insights actionable at every touchpoint.
Nikhil Lele, Americas Consulting Banking and Capital Markets leader at EY, says this requires treating personalization not as a marketing tactic, but as a capability transformation. By unifying transactional, behavioral and third-party data into a single customer view, banks can deliver real-time recommendations — whether directly to customers or to bankers assisting them.
For example, a customer exploring home equity options online might receive personalized calculators, educational videos, or dynamic product recommendations based on their financial profile. Meanwhile, if that same customer walks into a branch, their banker can access those same insights to continue the conversation.
Lele calls this “daily relevant engagement.” The idea is to move beyond episodic interactions — like loan renewals or account openings — to ongoing, everyday relevance. That might mean financial wellness content tailored to life events, or AI-driven chatbots capable of resolving complex requests, like ordering foreign currency.
“Where hyperpersonalization then becomes real is when you can show a customer a very timely contextual offer, at a moment when they are most in need or in search of a very specific product,” he says.
As banks lean more heavily on data and AI, they must also lean into transparency.
Consumers are increasingly aware of how their data is being used and they’re willing to share it only if it benefits them. Trust and consent should be at the heart of every personalization effort, Lele says.
“The primary intent and purpose should really always focus on the customers best interest,” Lele says. “What executives should really focus on, first and foremost, is using data for the best interest of the consumer as opposed to feeding a mass marketing machine.”
That means giving customers clear visibility into what data is collected, how it’s used and the ability to opt out or adjust preferences at any time. When customers trust that their information is being used to improve their financial well-being, they’re more likely to engage deeply — and more often.
Competing for Relevance
Personalization is emerging as one of the most important differentiators for banks in the years ahead. As consumer expectations evolve, customers increasingly value financial experiences that feel relevant, timely and tailored to their individual needs.
When banks leverage data intelligently, they can move beyond generic services and offer meaningful financial guidance — combining insights with human interaction to create relationships that feel personal, not transactional. Personalization becomes the bridge between digital convenience and the trust that comes from real human connection.
“To be indispensable,” Standridge says, “you have to provide something your customers don’t feel they can get anywhere else.”
