Australian banking is at a pivotal moment. As digital transformation accelerates, banks face the challenge of delivering seamless, secure, and inclusive experiences that meet the evolving expectations of a diverse customer base. The Australian context is unique: customers demand both cutting-edge digital services and the reassurance of personal, human support. Banks must balance innovation with inclusion, trust, and societal responsibility—while navigating regulatory pressures and fierce competition from digital-first challengers.
Personalization is no longer a luxury; it is an expectation. Recent research shows that 74% of Australians expect personalized service from their banks, with this figure rising to 80% among younger adults. Yet, as digital adoption grows, many customers feel that personal service is being eroded. There is a clear desire for human connection, even as digital channels proliferate. Customers want to see personalization in customer service, account management, and financial planning, but they are wary of AI and automation replacing the human touch. While 58% believe these technologies can improve their experience, 42% are concerned they may make it worse—especially among older generations.
Banks are responding by investing in omnichannel strategies that blend digital efficiency with human empathy. The most forward-thinking institutions are leveraging AI to enhance, not replace, personal service, and are investing in staff training to ensure value is delivered across both digital and physical settings. The goal is to create seamless, personalized journeys that adapt to individual needs and preferences, regardless of channel.
Despite the digital shift, physical branches and cash remain vital for many Australians. Seventy-two percent have visited a branch in the past six months, with ATM services, customer service, and cash transactions as top reasons. Cash is especially important for older Australians and those in regional and remote areas. While 62% see some benefits to a cashless society, 38% do not—rising to 95% in regional and remote communities who value cash access.
Branch closures and reduced cash services are sources of concern. Many customers would be upset by branch closures, and a significant minority would consider switching banks. Willingness to pay for cash services is low, but younger and gig-economy workers are more open to fees. Banks must maintain accessible cash and branch services, especially for vulnerable and regional customers, while accelerating digital readiness and providing education to help all customers adapt. Alternative models for cash access should be explored to avoid disenfranchising segments of the population.
Security is a top concern for Australians. While 83% have high confidence in their bank’s fraud prevention, more than half feel they have been scammed—most commonly via email, fraud, or identity theft. Customers expect banks to provide both financial and emotional support if they fall victim, but experiences with scam resolution are mixed. Only 23% found their bank completely helpful, while others reported minimal or no assistance.
Banks are expected to invest in advanced scam detection and prevention technologies, and to provide clear, empathetic support and education to customers. The emotional impact of scams is significant, and customers value not just the outcome but the quality of support they receive. Setting realistic expectations about bank responsibilities, while striving to exceed them in moments of need, is essential for building trust.
Financial stress is widespread, with 92% of Australians experiencing it in the past year. Customers want banks to be proactive—using data to identify early warning signs and offering flexible support such as loan relief, fee waivers, and interest adjustments. The process of seeking help is often seen as disjointed and suboptimal. Banks that use data and AI to proactively identify and support customers in financial distress, and that streamline assistance processes to make them more accessible and empathetic, will be best positioned to build lasting relationships.
Sustainability is rising on the agenda. Forty percent of Australians would pay more for green banking products, especially among younger generations. Customers are motivated by values and a desire to support important issues, but nearly half believe green products should not cost more. Banks are expected to develop green products that are accessible and competitively priced, and to communicate the value and impact of green banking clearly.
Trust remains a challenge. Only 13% of Australians express respect for the banking sector, and most have not seen significant change since the Royal Commission. There is a strong expectation for banks to balance innovation with inclusion, security, and social responsibility.
Australia’s digital transformation journey in banking is marked by both opportunity and responsibility. By learning from customer insights and acting with purpose, banks can deliver experiences that drive growth, foster trust, and create lasting societal value. The future of banking in Australia lies in balancing digital innovation with trust, accessibility, and societal value—ensuring every customer feels valued, secure, and included.