Regional Strategies for Hyper-Personalized Banking: Navigating Consumer Duty and Open Banking in the UK and EU

The New Imperative: Hyper-Personalization in a Regulated Landscape

In the UK and EU, the banking sector is undergoing a profound transformation. The convergence of evolving customer expectations, regulatory mandates such as the UK’s Consumer Duty and the EU’s PSD2, and the rapid expansion of open banking is redefining what it means to deliver value in financial services. Banks are now expected to provide hyper-personalized experiences—tailored to individual needs, life stages, and behaviors—while ensuring compliance, security, and trust at every step.

Publicis Sapient stands at the forefront of this transformation, helping banks across the region navigate the unique challenges and opportunities of hyper-personalization in a complex regulatory environment.

Region-Specific Challenges: Compliance, Consent, and Competition

UK: Consumer Duty and Open Banking

The UK’s Consumer Duty regulation sets a new standard for customer outcomes, requiring banks to act in the best interests of their customers, deliver fair value, and support informed decision-making. At the same time, open banking initiatives have unlocked new possibilities for data sharing and innovation, but also heightened the need for robust consent management and data governance.

EU: PSD2 and Data Privacy

Across the EU, the revised Payment Services Directive (PSD2) has mandated secure, customer-consented data sharing between banks and third-party providers. This has accelerated the adoption of open banking, but also introduced stringent requirements for data privacy, security, and cross-channel consent management—especially under the General Data Protection Regulation (GDPR).

Market Dynamics

Both regions face intense competition from digital-native challengers and fintechs, who are raising the bar for seamless, personalized experiences. Traditional banks must modernize legacy systems, break down data silos, and orchestrate real-time, omnichannel journeys to remain relevant and competitive.

Compliance Considerations: Building Trust by Design

Hyper-personalization in banking is only possible when underpinned by rigorous compliance and ethical data use. Key considerations include:

Consent Management: Banks must provide customers with clear, granular control over their data—enabling them to opt in or out, manage preferences, and understand the value exchange.
Data Privacy and Security: Systems must be designed to support the right to disclosure and erasure, enforce consent across all channels, and provide auditability for regulatory scrutiny.
Transparency: Clear communication about how data is collected, used, and protected is essential for building trust and meeting regulatory expectations.

Data Integration: The Foundation for Personalization

The ability to deliver hyper-personalized experiences hinges on robust data integration. Many banks in the UK and EU still grapple with fragmented data environments, legacy systems, and organizational silos. Publicis Sapient helps clients:

Unify Data Across Channels: Implement customer data platforms (CDPs) that centralize and harmonize data from web, mobile, CRM, and in-branch sources.
Enrich Customer Profiles: Combine first-party data with high-quality third-party sources to create comprehensive, actionable customer views—encompassing hundreds of attributes from demographics to behavioral signals.
Enable Real-Time Activation: Leverage AI and machine learning to analyze data at scale, identify intent, and deliver timely, relevant offers and communications.

Customer Consent: Empowering the Individual

In the open banking era, customer consent is not just a compliance requirement—it’s a strategic differentiator. Banks that empower customers with control over their data, and clearly articulate the benefits of sharing, are better positioned to build loyalty and trust. Publicis Sapient’s approach embeds consent management and privacy controls into every solution, ensuring that personalization is always ethical, transparent, and compliant.

Real-Time Personalization: From Insight to Action

Hyper-personalization is about more than segmentation—it’s about delivering the right message, offer, or support at the precise moment of need. By harnessing AI and advanced analytics, banks can:

Predict Customer Needs: Use behavioral data and machine learning to anticipate life events, financial goals, and product needs.
Orchestrate Omnichannel Journeys: Ensure seamless, consistent experiences across digital and physical touchpoints, from mobile apps to in-branch interactions.
Continuously Optimize: Adopt a test-and-learn culture, using real-time feedback to refine segmentation models, offers, and engagement strategies.

Publicis Sapient’s Expertise: Navigating Complexity, Delivering Results

With decades of experience in digital business transformation and deep expertise in the UK and EU banking sectors, Publicis Sapient is uniquely positioned to help banks unlock the full potential of hyper-personalization. Our approach combines:

Strategy and Compliance: Aligning personalization initiatives with regulatory requirements and business objectives.
Technology and Data Science: Implementing modern, cloud-native platforms, AI-driven analytics, and robust CDPs to enable real-time, compliant personalization.
Customer-Centric Design: Blending digital innovation with human touch, ensuring that every experience is intuitive, accessible, and trust-building.
Proven Impact: Delivering measurable results, from increased conversion and engagement rates to reduced operational costs and accelerated speed to market.

Real-World Success: Transforming Banking in the UK and EU

Publicis Sapient has partnered with leading banks to:

Modernize core banking platforms for real-time insights and personalized services
Implement AI-powered customer engagement tools that increase loyalty and lifetime value
Enhance fraud detection and compliance with machine learning and automation
Achieve up to 90% straight-through onboarding and significant increases in product sign-ups and engagement

The Path Forward: Actionable Steps for Regional Leaders

Assess and Unify Data: Break down silos and invest in modern data platforms to create a single, actionable view of the customer.
Embed Privacy and Compliance: Make consent, transparency, and security core to every personalization initiative.
Leverage AI for Real-Time Personalization: Use advanced analytics to predict needs, orchestrate journeys, and deliver value at every touchpoint.
Foster a Test-and-Learn Culture: Continuously experiment, measure, and optimize to stay ahead of evolving expectations and regulatory requirements.
Partner for Success: Work with experts who understand the unique regulatory and market dynamics of the UK and EU.

Ready to Redefine Banking in the UK and EU?

The future of banking in the UK and EU belongs to those who can deliver intelligent, ethical, and hyper-personalized experiences—at scale and with trust at the core. Publicis Sapient is your partner for navigating this journey, helping you turn regulatory complexity into competitive advantage and data into lasting value for your business and your customers.

Connect with our experts to start your transformation journey today.