Top 6 Digital Personalization Tactics in Financial Technology for 2025

Ally Bank – Age Segmentation

The organization groups its clients based on their age and life period; they accompany customers through different life milestones – weddings, purchasing a house, retirement, and more – and tailor relevant offers at each stage. The bank leverages AI-powered systems to get as many details as possible and unlock the full power of personalization.

Santander Bank Polska – Social Network Intelligence

With its Neo Intelligence project, the bank analyzes customers’ social media activity to better understand their motivations and preferences and therefore make more favorable offers.

Robinhood – Predictive Analytics for Trading

This commission-free trading platform uses predictive analytics to anticipate user needs and send targeted messages and content. This proactive approach has already increased the platform’s conversions by 25%.

BBVA – Real-time Personalization via Mobile App

BBVA uses real-time data to deliver proactive financial advice, tailored product suggestions, and alerts via its mobile app. Their focus on relevance, personalization, and punctuality results in enhanced customer engagement and increased revenue.

Bank of Ireland – Omnichannel Personalization

By analyzing both online and offline user behavior, the bank customized its messaging for each channel. This strategy led to a 278% increase in application submissions across different touchpoints.

N26 – Real-time Spend Tracking and Custom Tags

Key Benefits of Personalization in Digital Banking

Personalization in banking benefits both financial institutions and clients. With tailored strategies, companies can not only meet but exceed customer expectations, build meaningful and lasting connections, increase engagement and conversions, drive revenue, and thrive in the competitive environment. 

According to the BAI 2024 Banking Outlook, the lack of personalization is among the top three factors causing frustration with digital banking. Another research shows that personalization can boost revenue by 10–15%, though the increase can range from 5% to 25% depending on the industry and how well it’s done. 

Increased user engagement and satisfaction

As in any other industry, businesses that resonate deeply with customers, provide seamless user experiences, and cater to each individual’s needs see better engagement and higher satisfaction rates. Personalization in digital banking is powered by data analysis that might cover individual customer preferences, financial behavior, location, and transaction history.

Based on this information, financial organizations can tailor relevant offerings and provide reasonable recommendations, showing that they recognize their clients’ priorities and challenges, value them, and want to provide effective solutions. This creates confidence and helps to establish meaningful connections with customers. 

Boosting customer loyalty and retention

In the competitive fintech landscape, personalization is a strategy not just for growing but also for keeping a customer base. Consistently delivering relevant, tailored interactions helps financial institutions build long-term relationships with their customers. Today, people look for organizations that treat them as individuals, not just account holders. Understanding user behavior and anticipating needs allows banks to proactively address concerns and offer targeted support immediately, before clients switch to another solution. 

Various statistics indicate that many people are ready to pay extra for personalized services, opening additional revenue opportunities for companies that provide them.  

Higher conversion rates through relevance

Strategic and effective personalization in digital banking is a powerful tool that drives conversions and ROI. Fintech platforms that align content, offers, and services with users’ needs and behaviors can reduce the friction in the customer journey and encourage action more effectively. Providing personalized, timely, and relevant information catalyzes conversions, whether that’s signing up for a new product, service, or completing a transaction. 

Core Personalization Tactics Fintechs Will Use in 2025

As customer expectations keep evolving, companies are searching for effective strategies to deliver tailored experiences that address individual needs and challenges. By harnessing the power of cutting-edge technologies like AI, ML, predictive analytics, and more, fintech solutions can ensure purposeful, data-driven user interactions. 

Real-time data-driven decisions

According to a Gartner report, data-driven personalization can increase revenue by up to 16%, enabling fintech companies to enhance profitability and build stronger customer relationships. That said, real-time data is pivotal for achieving personalized banking experiences. By studying client information, including behavioral patterns, spending habits, and financial goals, fintechs can make well-informed decisions and deliver tailored offerings, recommendations, or any other kind of information that would feel relevant to each individual client. 

Predictive analytics and AI modeling

Another method for ensuring successful digital banking personalization involves using predictive analytics and AI. Going beyond static segmentation, these technologies help anticipate customer needs based on their behavior, transaction history, life events, and more. 

AI algorithms can connect numerous pieces of user data into a complete user profile. Given such a comprehensive understanding of each client, fintech companies can improve their services and provide deeper AI-driven personalization.  

AI and ML models analyze client data to spot patterns or changes, helping create personalized strategies that align with each customer’s unique journey. Moreover, AI-powered chatbots and virtual assistants provide 24/7 customer service, maintaining context-aware communication – they answer questions, help resolve issues, and even make suitable offers based on users’ previous interactions. 

Personalized product recommendations

Each user’s spending habits or even the way they interact with a fintech solution can tell a lot about their needs, preferences, and priorities, supporting further personalized interactions. Customer behavior and transaction data analysis help suggest financial products that match a client’s lifestyle. For instance, if a user frequently shops online, they might benefit from a cashback card with e-commerce rewards. If someone is trying to save, they could be offered a profitable savings account or personalized investment options.

Behavioral targeting and triggers

Behavioral targeting enables real-time responsiveness that aligns with users’ immediate needs and contexts. This strategy involves reacting quickly with the most relevant content to maintain customer engagement and minimize churn. By tracking patterns such as browsing specific product pages, starting but not completing an application, or frequently using a certain feature, fintech platforms can set up event triggers that automatically send targeted messages, offers, or reminders. For example, if a user often checks loan calculators, the system might suggest personalized loan offers or helpful content on this topic.  

Personalized pricing

With personalized pricing, fintech companies move away from fixed rates and adapt their offerings to each client’s unique financial situation, goals, and risk profile to deliver flexible, customer-centric solutions. By offering the most favourable conditions where users can gain significant benefits, fintechs increase satisfaction, build trust, and encourage loyalty.

Dynamic customer profiles

For fintech solutions, customer profiles serve as a valuable source of information and a powerful instrument for customizing efforts. However, these profiles must be dynamic in order to open up multiple benefits of personalization. Instead of using only historical data, they must track real-time user activities and changes to tailor appropriate messaging and cater to clients’ demands proactively. Dynamic profiles enable more relevant financial services as they evolve along with customers’ needs, provide data-driven insights, and inform strategic actions. 

How to Implement Personalization in Digital Banking

Explore the key steps to ensure personalization in your digital banking processes. 

1. Define your personalization strategy. Start with a clear roadmap and realistic expectations. Choose personalized banking experiences that you can offer based on your goals, resources, and user segments. Set timelines, define success metrics, and organize cross-functional teams responsible for particular user segments or financial journeys for effective implementation.
2. Manage your data. Audit the data you already have, identify what’s missing and what needs to be cleaned, and determine the most valuable data types for efficient personalization in banking. Integrate tools to store, process, and access this data while maintaining security, unity, and consistency.
3. Embrace advanced technologies. Utilize AI, ML, and analytics to process vast amounts of data, retrieve insights, and inform decisions. 
4. Segment your audience. Group users based on behaviors, preferences, and financial needs to make sure everyone receives highly targeted and relevant offerings, thus boosting overall satisfaction and engagement.
5. Develop tailored fintech products & offers. Based on your user categories, provide personalization at every touchpoint. Design new or adjust existing offerings up to each customer segment’s profile. Use data to personalize pricing and product benefits for each group or individual.
6. Explore communication channels. Choose the most suitable channels to connect with your target audience; deliver personalized messaging that fits the context of previous interactions. 

Technologies Powering Personalization in Fintech

Challenges in Personalization and How to Overcome Them

Data security and privacy. Bringing personalization to banking is associated with managing transparency and customer data protection. Clients must be sure their sensitive information is secure and used properly. 

Solutions:

• Explaining what data is collected, why, and how it's used, making this information easily accessible and understandable for all users.
• Compliance with data protection laws and guidelines.
• Implementing multi-factor authentication, end-to-end encryption, and real-time fraud detection to protect user data.
• Regular audits.
• Educating clients on safe usage – creating strong passwords, recognizing phishing attempts, monitoring accounts, etc. 

AI reliability. Personalization for banking relies on AI-powered technologies, raising concerns about fairness and biases. Ensuring AI is used responsibly is key to building trust and delivering ethical, effective financial services. 

Solutions:

• Human review and approval of AI-generated recommendations before they reach customers.
• Compliance of AI systems with local and international regulations.

Data integration. Effective personalization in digital banking requires a unified, real-time view of customer data. However, organizational silos, inconsistent data sources, and legacy systems can hinder seamless integration. 

Solutions:

• Implementing integrated data management platforms to break down silos and unify data from various sources.
• Establishing a Single Customer View (SCV) to monitor customer behavior across all touchpoints and improve personalization.
• Maintain high data quality through regular database validation to remove duplicates, outdated records, or errors.
• Encourage collaboration between departments to ensure smooth data sharing and alignment on personalization strategies.

The Role of Personalization in the Evolution of Digital Banking

Hyper - personalization is transforming the financial industry, allowing organizations to attract and retain customers more efficiently, deliver high-quality services, build trust, and tap into more revenue streams.
Personalization across digital banking caters to users’ pressing needs, giving them a sense of being understood and valued. By embracing this data-driven approach, fintechs can resonate with their users more deeply, establish trustful connections, and gain a competitive advantage. 

Looking for a reliable IT partner with hands-on experience in fintech? At InVerita, we develop innovative solutions with personalization at their core. 

Contact us now, share your idea, and let’s turn it into a top-notch solution together!