Banking customer loyalty has become increasingly challenged in recent years. With rising competition from credit unions, fintechs and other financial service providers, attracting and retaining bank customers has never been more critical. Since loyal customers tend to be more valuable than new ones, understanding how to attract and retain bank customers by building and maintaining these relationships is essential to safeguarding a bank’s bottom line.
These customers evolve beyond simple loyalty — they become advocates for your brand. According to the 2025 Global Banking Consumer Study from Accenture, these advocates are powerful drivers of organic growth. They not only recommend your bank to others but also deepen their own financial relationship with you. The study found that advocates, on average, hold 17% more products with their primary bank.
This directly translates to a greater share of wallet and increased revenue. In fact, banks with the highest customer advocacy scores grow their revenues 1.7 times faster than competitors with the lowest scores. Cultivating advocacy is not just about retention — it’s about building a sustainable growth engine for the future.
How to Strengthen Customer Loyalty in Banking
Today’s customers expect seamless, on-demand experiences from every brand they interact with — including their financial institution. To meet these heightened expectations and to foster customer loyalty in banking, banks are investing in technology, increasing personalization and offering value-added services to improve the customer experience.
By gaining deeper insights into each account holder’s unique needs and preferences, financial institutions can deliver tailored offers and interactions that nurture stronger relationships and boost satisfaction.
Future-focused organizations understand the importance of adapting to evolving expectations. Below are five ways financial institutions can provide a higher level of service and convenience to retain account holder loyalty.
Strategy #1: Use Data to Time Offers and Outreach
By understanding each customer’s financial situation and matching them with tailored offers, marketers are able to deliver timely and meaningful communications that strengthen the customer experience and increase loyalty. When account holders feel understood and valued, it strengthens their connection to your brand.
This starts with gathering both internal and external data to better understand customer behaviors, assess financial risk, and identify individual preferences. These insights can be used to improve customer segmentation and deliver personalized product recommendations, resulting in more relevant and effective customer engagement — critical to building customer loyalty in banking.
Strategy #2: Personalize Beyond the Basics
Personalization is a key component of how to attract and retain bank customers, as it allows financial institutions to address individual needs and build stronger connections. While basic personalization, such as addressing customers by name, is a good start, it’s not enough. While banks struggle with a steep 15% annual customer attrition rate, personalization can play a critical role in reducing churn. In fact, a recent survey found that 70% of consumers are willing to share their banking information in exchange for better loan rates, financial tools or personalized spending insights. Understanding which offers customers value most is essential to attracting and retaining bank customers.
However, personalization isn’t one-size-fits-all. Different generations have distinct financial goals and behaviors that shape their banking needs. For example, younger generations like Gen Z and Millennials often prioritize digital banking and mobile-first experiences, but their specific preferences differ. According to The Financial Brand, Gen Z values ATM availability and frequently seeks educational tools to manage multiple financial relationships. Millennials, on the other hand, are focused on building wealth, with their assets growing at the fastest rate among all generations, driven by real estate acquisition as they reach peak home-buying age.
Older generations, such as Gen X and Baby Boomers, have their own unique priorities. According to The ABA Banking Journal, Gen X is the generation most likely to prioritize saving for retirement. They focus on long-term financial planning while balancing responsibilities like managing debt and supporting their families. Baby Boomers, nearing or in retirement, are less focused on debt repayment or emergency funds and instead prioritize maintaining financial stability and managing their retirement savings.
Strategy #3: Create Experiences That Make Loyalty Worth It
To attract and retain bank customers, it’s essential to create positive and rewarding experiences that go beyond basic transactions. Today’s customers value relationships with their financial institutions, and according to Accenture, 60%of banking customers want relationship-based rewards. These rewards aren’t just about tangible incentives — they’re about fostering trust and building meaningful connections. By delivering personalized experiences and maintaining consistent communication, banks can strengthen these relationships and drive long-term loyalty.
Relationship-based rewards can take many forms. Offering relationship-based pricing, sending personalized birthday and anniversary greetings, or reaching out to customers who have submitted survey responses are all effective ways to make customers feel valued. These thoughtful gestures not only enhance the customer experience but also help banks stand out from competitors, making them more effective at attracting and retaining bank customers.
LOYALTY TIP: To engage, connect, and empower customers effectively, use a variety of communication methods such as personal/chat/text interactions, AI-driven conversations, messages from leadership, Q&A/FAQ sessions, webinars and community involvement.
Strategy #4: Offer Relevant Advice Across Generations
Each generation has distinct financial priorities, and understanding these unique needs is key to creating personalized banking experiences. According to The Financial Brand, 72% of Gen Z customers expect banking to be tailored to their specific goals. This generation values proactive guidance and seamless digital interactions, seeking resources that are readily available but not forced upon them.
Similarly, 55% of Millennials want a more personalized digital banking experience, reflecting their focus on major life activities like managing savings, understanding credit and financial planning. As The Financial Brand highlights, Millennials are at a life stage where they are adding mortgages, investment accounts and other financial products, making tailored advice even more critical.
For Gen X and other generations, the need for personalized and anticipatory banking experiences remains highly relevant. This reflects a broader industry shift toward meeting customers’ unique financial needs at every life stage. By creating customized resources that cater to these different financial goals, banks can differentiate themselves and demonstrate how to attract and retain bank customers across generations.
Strategy #5: Balance Digital Tools With the Human Touch
Future-oriented banks invest in digital technology to enhance the customer experience and provide convenient, accessible banking services. This includes digital and mobile banking as well as AI-driven, guided product selection at account opening that offers personalized product recommendations.
Technology has also enabled banks to collect and analyze large amounts of account holder data, leading to more personalized and targeted marketing campaigns. However, it’s important not to overlook the value of investing in people. While technology can streamline processes and improve efficiency, it’s people who drive customer satisfaction and loyalty.
Effective loyalty programs often balance the efficiency of technology with the personal touch of human interaction. This balanced approach creates a seamless and highly personalized customer journey that aligns with individual needs and preferences, ultimately supporting efforts in attracting and retaining bank customers. By investing in both digital platforms and skilled personnel, banks can build stronger relationships and significantly enhance customer loyalty in banking.
How to Attract and Retain Bank Customers with Vericast
In today’s competitive financial landscape, banks face increasing pressure to excel in both acquisition and retention to ensure long-term success. Vericast empowers financial institutions to meet these challenges by delivering innovative, data-driven strategies that focus on building meaningful customer relationships.
By leveraging our expertise in marketing, finance and media, financial institutions can deliver personalized experiences that resonate with customers — at the right time and through the right channels. This ensures that every interaction adds value, fostering trust and long-term loyalty.
