Spinning the CX flywheel

Competition between new players and traditional banks is fiercer than ever. But despite significant investment in new trends, the results fall short of expectations. So what’s not working? Let’s take a step back and look at two foundational questions: what do banking customers want, and how can banks meet those needs?

 

Capgemini’s World Retail Banking Report 2025 gathered insights from 8,000 banking customers, 700 sales and marketing staff and 200 senior banking executives across 11 global markets. It showed that card strategy and customer experience (CX) are key focus areas for consumer banks, and suggests ways to better attract, convert and hold onto customers.

 

From cards to conversions

 

First, the hard truths. The report found that:

• Just 9 per cent of targeted bank card prospects are successfully converted into bank card customers
• Nearly half of customers who start a card application process don’t finish it
• Only 26 per cent of active card users are satisfied with their experiences

Customers reported friction in their card journeys from the start. Even in the onboarding process – that crucial moment when prospects become customers – only 31 per cent reported being satisfied. This bumpy application journey is reflected on the bank’s side as well. Employees reported frustration with processes, particularly regarding manual workflows and limited automation.

 

Now the positive news: wrapped up in this challenge is the key to a true revolution in consumer banking.

 

The flywheel approach to CX

 

A flywheel is an ingenious piece of engineering. A heavy wheel, it takes considerable force to get spinning. But once it’s moving, the flywheel provides a powerful and consistent source of energy. What consumer banks need today is a CX flywheel – a system that gives customers consistently impressive experiences. Digitising and automating processes are the foundation of this CX flywheel. But that’s only the beginning.

 

Attract, engage, delight

 

By positioning cards as more than payment tools, banks can secure a prominent place in customers’ wallets and lay the groundwork for stronger customer relationships across a broad portfolio of products and services.

 

This process has three simple steps:

• Attract
• Engage
• Delight

Today’s cardholders, especially urban digital natives, seek more than functional transactions. They value meaningful, aspirational experiences – value-driven engagements that resonate with their ambitions. By aligning their card strategy with customers’ lifestyles and financial goals, banks can create a foundation for long-term engagement and advocacy.

 

Simply excellent

 

Legacy processes and siloed offers prevent banks from effectively using their customers’ data. The flywheel approach can solve this by positioning the customer at the centre and designing outstanding experiences tailored to their needs.

 

This can take the form of:

• Partnerships with lifestyle and retail brands – alongside premium, tailored experiences – so card users feel privileged to be your customer
• Intelligent personalisation, to make sure that rewards and services adapt to customers’ evolving needs (with no extra action required by customers) – that way, everyday interactions become moments that customers look forward to
• Intelligent contact centres: by integrating real-time insights and advanced AI, these hubs anticipate customers’ needs and resolve issues faster – while deeper understanding breeds lasting loyalty

With AI and data analytics, banks can help their customers choose products, services, rewards and solutions that meet their needs. With the CX flywheel, customers will rest assured that they’ve made the right choice.

 

Shifting loyalties

 

Customers are more demanding than ever. They’re poised to try new players if their expectations aren’t met, with an unprecedented willingness to switch banks when conditions are right. Creating an environment where customers want to stay means building an interconnected cycle of attraction, engagement and delight. It’s time to turn this disruption into steady customer growth. It’s time to get this flywheel spinning.

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For original research and retail banking insights, have a look at Capgemini’s World Retail Banking Report 2025

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By Gareth Wilson, Global Banking Industry Leader, Capgemini

 

With over 30 years of experience, Gareth is an expert in developing long-term client relationships, with a proven track record of successfully managing complex, large-scale, business-critical client engagements.