Retail banking in transition: What can be gleaned from current customer data regarding banking services

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The expectations that private customers have of banks are changing noticeably – not abruptly, but in line with specific usage scenarios. A survey of 700 retail and affluent customers in Germany and Switzerland paints a nuanced picture: high satisfaction with existing banking relationships, coupled with a growing willingness to switch in strategically relevant segments, and clearly articulated expectations regarding digital functions, data usage and new service contexts.

The results indicate not so much a radical break with traditional banking as a gradual shift in the role of banks. Younger respondents and affluent customers in particular have significantly higher expectations. The focus is on service design, context integration and changing communication patterns.

Multibanking and willingness to switch: banking relationships are becoming more fragmented

A key pattern emerging from the study is the increasing parallelism of banking relationships. Affluent customers use three or more banks significantly more frequently than non-affluent segments. Banks are thus increasingly taking on the role of either an anchor bank or a complementary add-on provider.

At the same time, satisfaction with existing institutions remains high; nevertheless, around 14.9% of Swiss and 16.6% of German respondents plan to switch their banking relationship. The propensity to switch is particularly pronounced among younger, higher-income and wealthier customer groups. This trend suggests that loyalty is becoming increasingly situation-dependent. Customers combine different providers to meet specific needs – such as trading, payments or traditional account management.

Implications for banking services:
Banking offerings are increasingly perceived as modular. Services must be clearly positioned – either offered in isolation by the bank, supplemented by third-party services through the bank, positioned by the bank within non-banking networks (embedded), or with the bank acting as the orchestrator of a network.

Digital expectations: functional logic rather than feature inflation

A large proportion of under-40s feel that banking apps lack additional functions. In Germany, 85.7% of this age group state that certain features are missing; in Switzerland, the figure is 75.5%.

The functions in greatest demand are those familiar from other digital offerings:

  • cashback programmes and spontaneous rewards
  • personalised recommendations or annual reviews
  • playful savings and budgeting features
  • short video or educational formats
  • seamless, shopping-like processes

This is less about technological complexity and more about integration into existing everyday routines. The banking app is increasingly being compared to platforms such as Amazon, Spotify or Duolingo – not to other banks. A clear trend is also evident when it comes to opening an account: the website remains the preferred entry point across all channels, whilst branch-based processes remain relevant, particularly among older demographics.

Implications for banking services:
Digital offerings are evolving towards a service-oriented approach. What matters is not the number of new features, but their integration into familiar usage patterns.

Data usage and trust: High openness with clear boundaries

Traditional banks continue to be perceived as the most trustworthy source for financial data. In Germany, 78.1% and in Switzerland 88.7% name traditional banks as their preferred data managers. At the same time, a mixed picture emerges: many customers are willing to share their own data for personalised services, but reject additional fees and the use of third-party data.

This combination of openness and scepticism shapes expectations for future service design. Personalisation is accepted as long as it remains transparent and does not incur additional financial costs.

Implications for banking services:
Personalised offers must be designed transparently and can be created either by the bank or by the user themselves.

Embedded banking: expanding the role in everyday life

A clear signal from the study is the growing interest in services beyond traditional financial offerings. People under 40 increasingly want support in areas of life such as financial wellbeing, housing, work or health. In Germany, around 55% of this age group state that they expect such services; 46.8% would be willing to pay for them. In Switzerland, the figure stands at around 40%, with a willingness to pay of around 30.9%. These results point to growing potential for embedded services – that is, offerings that integrate financial functions directly into everyday situations.

Implications for banking services:
Banking is shifting from individual products towards context-based service bundles. Collaborations with partners (evaluation, selection, onboarding, maintenance, governance) are gaining in importance, as many desired services are often created in conjunction with partners rather than in isolation by the bank.

Communication, advice and financial literacy: new roles are emerging

The study reveals a clear shift in communication behaviour. Many respondents prefer to discuss finances with family or friends rather than with their bank’s advisory team. A significant proportion of students and those under 40 actively avoid engaging with customer advisory services. At the same time, interest in independent financial advice is rising, particularly among higher-income earners. Expectations regarding financial education are also growing – both through branch-based services and via digital platforms and gamified formats. Loyalty programmes, gamification and learning initiatives are viewed positively, particularly by younger target groups.

Another clear finding concerns chatbots: automated advisory services are largely rejected and currently play hardly any role in interactions with banks.

Implications for banking services:
Advice is evolving from a product-oriented interaction towards knowledge transfer and situational support. Digital learning formats could become an important component of future service offerings.

Conclusion: (Still) stability in the status quo, dynamism in expectations

The study does not reveal an abrupt disruption scenario, but rather a gradual shift in customer expectations. Banks continue to benefit from high levels of satisfaction and strong trust, whilst at the same time there is a significant shift in requirements regarding digital functions, data usage and service design.

Key developments can be clearly summarised as follows:

  • Banking relationships are becoming more modular and less exclusive.
  • Digital expectations are guided by platform and app logic outside the banking sector.
  • Personalisation is accepted, but additional fees are rarely tolerated
  • Embedded services are gaining relevance, particularly among younger target groups, and offer monetisation potential
  • Traditional advisory services are losing importance, whilst financial literacy and hybrid forms of interaction are gaining ground.

The findings illustrate that banking services are increasingly being developed around life situations rather than product categories. This presents institutions with the task of bundling existing offerings more effectively, contextualising them and embedding them in new service environments.

Stefanie Auge-Dickhut
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