Australia’s banking sector is at a pivotal moment, navigating the intersection of rapid digital innovation and the enduring need for trust, inclusion, and societal responsibility. As banks accelerate their digital agendas, they face a unique set of challenges and opportunities shaped by Australia’s diverse demographics, regulatory environment, and evolving customer expectations. This page explores how Australian banks are redefining customer experience (CX) in a hybrid physical-digital world, drawing on recent research and customer insights to highlight what makes the Australian context distinct—and what lessons can be learned for the future of banking.
Australian customers expect more than just digital convenience—they want personalised, human-centric service. Research shows that 74% of Australians expect personalisation from their banks, with this figure rising to 80% among younger adults. Yet, as digital adoption accelerates, many customers express concern that personal service is being lost. Comments such as “less banks, less staff = less service” and nostalgia for dedicated relationship managers reflect a desire for meaningful human connection, even as digital channels proliferate.
Banks are responding by investing in omnichannel strategies that blend digital efficiency with human empathy. AI and automation are seen as both an opportunity and a risk: 58% of Australians believe these technologies will improve their banking experience, but 42% worry they could make it worse. The challenge is to use technology to enhance—not replace—personal service, ensuring that staff are empowered to deliver value across both digital and physical touchpoints.
Despite the digital shift, physical branches and cash remain vital, especially for older Australians and those in regional or remote areas. 72% of Australians have visited a branch in the past six months, with ATM services, customer service, and cash transactions as top reasons. While 62% see benefits in a cashless society, 38% do not—and this rises to 95% in regional and remote communities who value cash as essential.
Branch closures and reduced cash services are sources of anxiety, with many customers indicating they would be upset by closures and some even considering switching banks. Willingness to pay for cash services is low, but younger and gig-economy workers are more open to fees. The message is clear: banks must balance digital innovation with the need to maintain accessible, inclusive services for all Australians.
Security is a top concern for Australians. While 83% have high confidence in their bank’s fraud prevention, more than half (55%) 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.
Banks are expected to invest in advanced scam detection, prevention, and customer education. The emotional impact of scams is significant, and customers value not just the outcome but the quality of support they receive during stressful times.
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. However, the process of seeking help is often seen as disjointed and suboptimal.
Sustainability is rising on the agenda. Forty percent of Australians would pay more for green banking products, with higher interest 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, and 13% do not support these initiatives at all.
The future of banking in Australia lies in balancing digital innovation with trust, accessibility, and societal value. Leading banks are:
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 lessons from Australia’s journey are clear: innovation must be balanced with inclusion, security, and a commitment to the communities banks serve. Those who act boldly and decisively—while staying attuned to local needs—will define the future of banking in Australia and beyond.
To learn more or to book a workshop tailored to your organisation’s needs, contact our financial services experts in Australia.