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Insights and Expertise

currently cite their bank's mobile app as their primary
way of managing finances (see https://www.aba.com/ Nearly 40 percent of UK adults now
about-us/press-room/press-releases/consumer-survey-banking- have a digital-only bank account,
methods-2024 ).
nearly triple the figure from just
Customer expectations in the United States are also four years earlier.
shaped by this dual experience: they expect the traditional
trust and security offered by established banks, while
simultaneously desiring the agile, feature-rich experiences guidance. For American banks, integrating advanced
provided by fintech innovators. This signals both a analytics can shift their role from transaction processors
potential opportunity and a consideration: while banks to financial partners, strengthening their relevance in an
largely retain trust and regulatory credibility, they might increasingly competitive landscape.
risk ceding aspects of the customer experience to outside
platforms if they cannot match the digital agility of their Strategic recommendations
non-bank counterparts.
To effectively act on these opportunities, U.S. banks could
Key takeaways and potential avenues for U.S. banks consider modernizing their technology infrastructure.
Moving to cloud-native core systems enables faster
U.S. banks can benefit greatly by exploring the principles product deployment, supports better integration with
that have contributed to the success of UK neobanks, third-party services and reduces the operational cost of
starting with a sharper focus on user-centered design. maintaining outdated systems. With greater agility, banks
In the UK, digital-first banks have streamlined customer can experiment, adapt and scale innovations far more
onboarding processes to take less than five minutes, efficiently.
offering intuitive, frictionless app interfaces that aim to
make banking feel as simple as using a messaging app. Banks could also actively explore fintech partnerships—
but with a long-term view toward customer experience
This attention to ease of use has led to higher engagement consistency. While partnering allows institutions to roll
and loyalty, particularly among digital-native users. out new features quickly, fragmented user experiences
can dilute brand trust. The goal should be seamless
Another key opportunity lies in embedding value- integration that keeps the customer within a unified
added services directly into the banking experience. UK digital environment while still benefiting from external
neobanks have prioritized in-app access to P2P payments, innovation.
budgeting tools and financial wellness features, turning
banking apps into full financial hubs. These tools not U.S. banks might even closely monitor global regulatory
only increase app stickiness but also deepen customer trends, including those that support open banking and
relationships by addressing broader financial goals, such digital identity. By proactively preparing for potential
as saving, debt reduction, and long-term planning. regulatory changes, such as data portability mandates

or real-time payment frameworks, banks can position
U.S. banks might also explore how data analytics can themselves to capitalize on new digital models when the
deliver meaningful, personalized experiences. UK digital time comes.
banks have leveraged real-time data to provide customers
with spending alerts, savings suggestions and proactive The UK's digital banking modernization offers more than
a model for technological advancement; it represents
a mindset shift toward seamless, secure and highly
A digital banking blueprint for U.S. institutions responsive financial services. U.S. banks, though
navigating a more complex operational environment, have
UK neobanks have redefined banking with frictionless clear paths forward.
onboarding, mobile-first platforms and integrated
financial wellness tools, capturing nearly 40 percent By prioritizing mobile-first experiences, integrating
of adult customers. Their success stems from unified financial wellness tools and modernizing infrastructure,
regulation, agile infrastructure and sharp focus on they can meet rising customer expectations while
user experience. safeguarding long-term relevance.

For U.S. banks, the message is clear: modernize core Mark Van Horn is the digital solutions lead in North America for
systems, embrace the cloud and prioritize customer Giesecke+Devrient (G+D). With extensive experience as an entrepreneur
engagement. By adopting these strategies, American in emerging technology and as a leader within G+D's digital team, Mark
institutions can counter fintech competition, retain is a respected thought leader and market strategist within the payment
trust, and build a digital foundation that keeps pace technology industry. His insightful approach to solution initiatives and
with rising expectations. digital advancements has positively impacted the payment ecosystem
as a whole. For more information, please visit www.gi-de.com.
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