In a nutshell 🥥 Financial institutions should use digital banking to strengthen customer relationships—not replace them. The best experiences combine speed, simplicity, AI, and self-service with empathy, live support, and meaningful human connection. By designing digital channels around how customers feel, banks and credit unions can reduce friction, build trust, and create lasting relationships across every touchpoint.
I recently read “Financial Institutions Failing to Humanize Digital Banking Experiences” by Jim Marous and was nodding my head along the entire time.
I believe in a world where financial institutions can, and must, create long lasting relationships with their customers. As I dove deeper into the article by Mr. Marous, “Phone and branch-level customer service still outrank digital solutions in importance at banks and credit unions worldwide” stuck out for me.
We know many banks and credit unions have taken a digital first approach in order to preserve market share and the strategy makes sense – it is a natural response to want to plug the hole where the water is leaking in. Digital first has its place and I believe that place is in transactional everyday operations. Where it starts to fall short is when the customer just wants to talk to someone to resolve their question or problem. We’ve seen this proved out in our own research, and that of groups like Forrester. The human to human connection will always be the ultimate human experience. A chatbot or mobile app won’t replace that, but imagine in the app you could click a button and a human was on the other side, ready to answer your questions. Giving your customers, members and prospects the opportunity to choose how to engage with your brand is a leading factor in increasing engagement, improving experience and gaining and retaining market share.
“If customer service means showing empathy and appreciation for a customer’s issue – what most banks and credit unions strive for these days – financial institutions must address all the touch points where human service counts the most.”
In order to have a huge home run, I would suggest that FIs look at how digital solutions can strengthen the relationship with their customers, not replace it. Changing that perspective will provide an impactful and meaningful outcome with your customers.
This was my favorite part of the article.
“To overcome the innate coldness of digital channels, companies should apply The Human Conversational Model to their digital customer experience design efforts.”
It reminded me of a presentation that I attended at Web Summit. There was a designer on the stage and I will never forget his words. “We need to stop working on the screens, and have the screens start working for us.” When I read about empathic agility and emotional reflection this is what customers want! No matter how good we make technology, which I think we have a long way to go, we all better make sure we think of people first. How are we actually solving their challenges? All things considered, is their life getting easier or better having done business with their financial institution? Are we making it easy for them to tell us how and when and where they want to engage with their bank or credit union representative?
I really loved this article by Jim Marous as it hones in on the crux of the issue facing financial institutions – how can we humanize banking once again.
Frequently Asked Questions
What does it mean to humanize digital banking?
Humanizing digital banking means designing digital experiences around customers’ needs, emotions, and goals—not just speed and efficiency. It includes clear communication, personalized interactions, empathetic design, and an easy path to human support when customers need help.
How can hybrid banking combine digital convenience with human service?
Hybrid banking combines online, mobile, video, and in-branch services so customers can choose how they interact with their financial institution. Routine transactions can be completed digitally, while complex decisions and sensitive issues can be handled with an advisor or live agent.
Why is the human touch still important in digital banking?
Customers often need empathy, reassurance, and judgment when they are dealing with complex financial decisions or problems. Digital tools can make routine banking faster, but live employees remain essential when a customer needs explanation, emotional support, or a tailored solution.
How can AI improve the digital customer experience without replacing people?
AI can automate repetitive tasks, answer basic questions, identify customer intent, and route complex issues to the right employee. When used as an augmentation layer, AI gives employees more context and time to focus on conversations that require empathy, critical thinking, and relationship building.
What role does appointment scheduling software play in human-centered banking?
Appointment scheduling software gives customers control over when and how they meet with an advisor. It can reduce wait times, support remote or in-person appointments, and help employees prepare for each interaction with the right information and resources.
How does queue management in banks support a better customer experience?
Queue management in banks helps customers join queues remotely, receive wait-time updates, and arrive when service is available. It also helps financial institutions identify bottlenecks and allocate staff more effectively, reducing frustration across digital and physical touchpoints.
Can video banking create a more personal digital experience?
Yes. Video banking combines the convenience of a digital channel with face-to-face interaction. It can help customers access specialists remotely, discuss complex financial needs, and receive more personal support without traveling to a branch.
What is omnichannel banking?
Omnichannel banking is an integrated approach that allows customers to move between mobile, online, phone, video, and in-person channels without losing context. A consistent experience means customers do not have to repeat information every time they change channels.
How can financial institutions improve customer experience in banking?
Financial institutions can improve customer experience in banking by simplifying customer journeys, offering flexible service options, connecting digital and physical channels, using data to personalize interactions, and providing fast access to knowledgeable employees. Coconut Software highlights appointment scheduling, queue management, video banking, self-service, and omnichannel communication as key components of a modern banking experience.
Does a digital-first strategy work for every banking interaction?
No. A digital-first approach can be effective for routine, transactional activities, but it should not eliminate human support. Customers often prefer a live employee for complex financial decisions, problems that require judgment, or moments when they need reassurance. The most effective approach is to use digital tools where they add convenience while preserving human service where it adds value.
How can banks and credit unions increase deposit growth?
Banks and credit unions can increase deposit growth by combining customer insight, product innovation, compelling incentives, and a seamless omnichannel experience. Frictionless onboarding, personalized recommendations, convenient appointment scheduling, and high-quality human support can make it easier for new and existing customers to open accounts and commit more funds. Coconut Software’s guidance on deposit growth emphasizes that growth is supported by both relevant product strategies and a convenient customer experience.
How can banks and credit unions improve deposit retention?
Financial institutions can improve deposit retention by making it easy for customers to reach the right advisor quickly, especially when they need help with a complex or time-sensitive issue. Reducing wait times, simplifying appointment journeys, and providing consistent support across digital, video, phone, and in-branch channels can reduce friction and strengthen loyalty. Coconut Software’s perspective on deposit retention highlights human access and speed-to-advice as important parts of a retention strategy.
About Us
Coconut Software is the leading AI-powered Intelligent Branch Solution for banks and credit unions seeking to boost operational efficiency, deposit growth, loan growth, cross-channel seamlessness, and competitive CSAT and NPS scores. For over a decade, we have been the market leader in bank appointment scheduling software, branch workforce management, branch data and analytics, lobby and queue management, and video banking, helping our customers achieve increased CSAT, bigger ROI, and growth across all lines of business. Get in touch with us today to learn more.