Over the past decade, the way people engage with services has changed dramatically. Amazon anticipates what we want to buy, Netflix knows what we’ll watch next, and Spotify curates playlists that feel almost personal. Against this backdrop, it’s no surprise that customers now expect their banks to deliver the same level of convenience, experience, guidance and relevance.
The problem is, banking hasn’t kept pace. Too often, the relationship between a bank and its customer is still defined by products and transactions. The result is a widening gap between what customers need and what they receive, and that’s exactly where disruption takes root.
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Today’s customers don’t want apps that simply log their balances or display past spending. They want proactive, intelligent guidance that helps them make decisions in real time. They want their bank to act less like a service provider and more like a financial partner, or advisor, if you will.
What cognitive banking really means
This is where Cognitive Banking comes in. It marks a shift away from superficial “personalisation” toward deep, data-driven engagement. At its heart, Cognitive Banking is about bringing humanity back to digital channels, delivering the kind of financial guidance that was once available only to the wealthy, but now at scale.
By harnessing AI, banks can analyse behaviours, anticipate needs, and step in with meaningful support. That might mean flagging overspending before it spirals, automatically moving idle cash into savings, or nudging someone back on track with their financial goals. The aim isn’t to overwhelm customers with data, but to translate it into timely, actionable insights that genuinely improve their financial wellness.
From engagement to primacy
Engagement alone is no longer enough. According to Accenture’s Global Banking Consumer Study Report, 73% of customers engage with multiple financial institutions beyond their primary bank, and nearly 60% of primary checking accounts churn due to digital competitors. Customers increasingly shop around for the best deal, not the best relationship. For banks, the challenge isn’t just to engage customers, it’s to become their primary financial institution. That requires a more holistic view of wallet share and customer behavior across the entire lifecycle.
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By GlobalDataCrucially, this means looking beyond a customer’s direct interactions with the bank to understand their broader financial relationships, whether that’s with other providers, apps or payment platforms. Gaining this perspective allows banks to piece together a richer picture of customer needs, leading to more accurate insights, more relevant guidance and ultimately, a stronger relationship. What’s more, it doesn’t require open banking access.
Banks must understand not only how customers use their own products, but also the signals that point to activity elsewhere. With that broader perspective, they can move from offering one-size-fits-all experiences to delivering insights that strengthen loyalty and deepen the relationship.
Innovations now make it possible to segment customers by engagement type and tailor strategies accordingly. For example, new customers in their first 90 days can be nurtured with personalised insights that encourage adoption at the moment when attrition risk is highest. Secondary customers whose activity is drifting can be re-engaged with offers that rebuild trust and capture back wallet share. Customers showing attrition signals can be proactively supported to discourage them from leaving. Each segment receives curated, intelligence-driven guidance that helps them achieve their financial goals while encouraging them to rely more heavily on their primary institution.
Why this matters now
The business case is compelling. Primary customers generate up to 10x more deposits and 8x more fee revenue than non-primary customers. At the same time, research shows that 84% of consumers would consider switching banks to receive more relevant, timely insights. Financial wellness has overtaken health and relationships as a top life priority, and customers are prepared to reward the institutions that help them achieve it.
By harnessing behavioural intelligence and using customer data more intelligently, banks can deliver personalised, contextual guidance, strengthening trust, deepening wallet share, and accelerating the path to primacy.
The road ahead
Cognitive Banking offers more than an upgrade in digital experience; it is a strategy for long-term growth. It gives customers the confidence to make smarter decisions while enabling banks to capture greater loyalty, deposits, and engagement.
The industry is at an inflection point. Customers are demanding more, competition is intensifying, and primacy is the prize. The banks that thrive will be those that combine human understanding with the scale and intelligence of AI to create truly Cognitive Banking experiences; experiences that don’t just engage customers but secure their loyalty for the long term.
Now is the time to act. Customers are ready, the technology is proven, and the path to primacy has never been clearer.
Udi Ziv is CEO, Personetics
