Proactive Banking: How Customer Experience Innovation Supports Financial Well-Being During the Cost-of-Living Crisis

The Cost-of-Living Crisis: A Call to Action for Banks

The ongoing cost-of-living crisis is reshaping the financial landscape for millions, especially those in lower-income and financially stressed households. As everyday expenses soar, many customers find themselves struggling to make ends meet, facing difficult choices about spending, saving, and borrowing. For banks, this is not just a moment of challenge—it is a profound opportunity to redefine their role in society and demonstrate genuine customer-centricity. By leveraging customer experience (CX) innovation, banks can provide meaningful support to vulnerable segments, build long-term loyalty, and reduce both risk and cost to serve.

Rethinking Customer Experience: From Transactional to Transformational

Historically, banks have focused on transactional excellence—streamlining processes, reducing costs, and delivering products efficiently. But today’s customers, especially those under financial stress, need more than just efficient transactions. They seek guidance, empathy, and tools that empower them to achieve financial well-being. This shift requires banks to move beyond a product-centric mindset and embrace lifecycle-led, experience-driven strategies that address the holistic needs of their customers.

The Power of Data-Driven CX Analytics

Banks possess a wealth of customer data, yet too often this data is underutilized. By harnessing advanced CX analytics, banks can:

Identify early warning signs of financial distress—such as missed payments or unusual spending patterns.
Segment customers by financial vulnerability to tailor outreach and support.
Predict and prevent negative outcomes by proactively offering solutions before issues escalate.

This data-driven approach enables banks to move from reactive problem-solving to proactive care, ensuring that support reaches those who need it most, when they need it most.

Digital Nudges and Personalized Support

Digital innovation has unlocked new ways to engage and empower customers. Features such as budgeting tools, savings “pots,” and automated alerts can help customers manage their finances more effectively. For example:

Budgeting and Savings Tools: Many digital banks now offer features that allow customers to set aside money for specific goals, lock savings to prevent impulse spending, and receive real-time feedback on their financial habits. Traditional banks, with their rich data histories, are uniquely positioned to enhance these tools with predictive insights and personalized recommendations.
Timely Digital Nudges: Automated notifications can alert customers to upcoming bills, suggest ways to reduce spending, or prompt them to review their budgets. When combined with AI, these nudges can be tailored to individual circumstances, increasing their relevance and impact.
Proactive Outreach: Rather than waiting for customers to reach out in crisis, banks can use analytics to identify at-risk individuals and offer support—such as financial coaching, payment plan options, or referrals to community resources—before problems become acute.

Responsible Lending and Creative Borrowing Solutions

Access to fair, responsible credit is critical during periods of financial stress. Banks can:

Design lending products with built-in safeguards—such as spending limits, usage controls, and eligibility criteria that prevent over-borrowing.
Leverage open banking and AI to assess affordability more accurately and offer tailored repayment plans.
Educate customers on the risks and benefits of different borrowing options, ensuring transparency and trust.

By prioritizing responsible lending, banks not only protect vulnerable customers but also reduce credit losses and regulatory risk.

Practical Solutions: Building Resilience and Loyalty

Experience-led innovation is not just about technology—it’s about designing every touchpoint with empathy and purpose. Practical solutions that support financial well-being include:

Integrated Financial Health Dashboards: Bringing together account balances, spending insights, and personalized recommendations in a single, easy-to-use interface.
Automated Savings and Bill Management: Using AI to identify opportunities for customers to save on recurring expenses, automate bill payments, and avoid late fees.
Human + Digital Support: Combining digital tools with access to empathetic human advisors, especially for complex or emotionally charged issues.
Financial Education and Coaching: Delivering bite-sized, actionable content that helps customers build financial literacy and confidence.

The Business Case: Reducing Risk and Cost to Serve

Investing in customer experience is not at odds with commercial goals—in fact, it is one of the most effective ways to achieve them. Banks that prioritize CX innovation see:

Lower operational costs through reduced call volumes, fewer errors, and more efficient service channels.
Reduced credit risk by intervening early and supporting customers before they default.
Increased loyalty and engagement, leading to higher lifetime value and positive word-of-mouth.

Research shows that banks with higher CX scores enjoy greater willingness among customers to interact with them in the future, even during challenging times. By aligning service design and human-centered design with the customer journey, banks can eliminate inefficiencies, streamline operations, and deliver experiences that matter.

A Blueprint for Proactive, Inclusive Banking

To support financially stressed customers during the cost-of-living crisis, banks should:

Map the customer journey to identify pain points and opportunities for proactive support.
Invest in human-centered and service design to ensure every touchpoint is intuitive, accessible, and empathetic.
Leverage data and AI to personalize outreach, predict needs, and automate routine tasks.
Empower employees with unified tools and training to deliver high-quality, compassionate service.
Pilot and scale high-impact solutions, measuring results and iterating based on feedback.

Why Publicis Sapient?

With decades of experience in digital business transformation, Publicis Sapient partners with leading banks to deliver data-driven, experience-led solutions that balance commercial success with social responsibility. Our proven methodologies, deep sector expertise, and commitment to financial inclusion make us the partner of choice for institutions seeking to build resilience, loyalty, and long-term value—especially for those who need it most.

Ready to reimagine your approach to customer experience and financial well-being? Connect with our experts to start your journey today.