CXGX in Action: How Regional Banks Can Win on Customer Experience

Regional banks stand at a pivotal crossroads. As digital transformation accelerates across the financial sector, these institutions face a unique challenge: how to modernize and scale their customer experience (CX) while preserving the local relationships and trust that set them apart from national giants. The Customer Experience Growth Index (CXGX) offers a powerful framework for regional banks to prioritize the right investments, differentiate in a crowded market, and drive sustainable growth.

The Regional Bank Advantage: Local Knowledge, Lasting Relationships

Unlike national banks, regional banks are deeply embedded in their communities. Their strength lies in personal relationships, local market knowledge, and a reputation for trustworthiness. However, as digital-first competitors and fintech disruptors raise the bar for seamless, personalized experiences, regional banks must evolve. The key is not to abandon what makes them special, but to amplify it through digital innovation.

The Digital Imperative: Why CX Matters More Than Ever

Today, 89% of companies compete primarily on customer experience, yet only 8% of customers feel they receive a truly superior experience. This gap is especially pronounced in banking, where customers expect the same intuitive, personalized service they receive from leading consumer brands. For regional banks, the stakes are high: exceptional CX drives loyalty, increases share of wallet, and unlocks new revenue streams. Falling short risks customer attrition and irrelevance.

CXGX: A Roadmap for Regional Bank Transformation

The Customer Experience Growth Index (CXGX) is designed to help banks identify which customer experiences matter most—and which investments will deliver the greatest impact. Unlike traditional CX metrics, CXGX links experience improvements directly to business growth, enabling regional banks to:

Pinpoint high-impact touchpoints: Understand which moments in the customer journey create the most value or friction.
Prioritize investments: Focus resources on the experiences that drive loyalty, satisfaction, and growth.
Measure progress: Track improvements in CXGX scores to ensure initiatives are delivering real business results.

Overcoming Barriers: Balancing Digital Efficiency and Human Connection

Regional banks often face barriers to transformation, including legacy systems, limited budgets, and concerns about losing the personal touch. Yet, digital tools can enhance—not replace—human relationships. For example:

Mobile and Online Banking: Streamlining core journeys (like checking balances, making payments, or managing cards) through intuitive digital channels meets customer expectations for convenience while freeing up staff to focus on complex, high-value interactions.
Personalized Journeys: Leveraging data and AI, regional banks can deliver tailored product recommendations, proactive financial advice, and timely support—mirroring the individualized service customers expect from their local branch.
Hybrid Service Models: Combining digital self-service for routine tasks with easy access to knowledgeable staff for more complex needs ensures customers feel supported at every step.

Differentiation Through CX: The Regional Bank Opportunity

Regional banks can outpace larger competitors by doubling down on their core strengths:

Deep Community Ties: Use digital channels to extend community engagement, such as supporting local events, offering financial education, or spotlighting local businesses.
Agility and Responsiveness: Smaller size enables faster decision-making and the ability to pilot new CX initiatives quickly—whether it’s launching a new mobile feature or testing a personalized rewards program.
Trust and Security: Emphasize robust security features and transparent communication, leveraging the trust already built with local customers.

CXGX Priorities for Regional Banks

Based on industry insights, the top CX transformation priorities for regional banks include:

Personalized Customer Journeys: Move beyond one-size-fits-all offerings to deliver experiences tailored to individual needs and life stages.
Seamless Omnichannel Experiences: Ensure consistency and continuity across digital, phone, and in-branch interactions.
Data-Driven Decision Making: Break down data silos to gain a 360-degree view of the customer, enabling smarter, faster service.
Employee Enablement: Equip frontline staff with unified tools and information, empowering them to deliver exceptional service and resolve issues efficiently.
Cost-Effective Digital Self-Service: Invest in intuitive self-service options for routine tasks, reducing operational costs while improving customer satisfaction.

Real-World Impact: CX-Led Transformation in Action

Regional banks that embrace CXGX principles are already seeing results:

Contact Center Optimization: By analyzing customer journey data, banks can identify common pain points and introduce digital FAQs or proactive notifications, reducing call volumes and enabling staff to focus on high-value interactions.
Employee Experience Transformation: Consolidating disparate systems into a single interface for staff reduces training time, decreases turnover, and shortens customer wait times—delivering both cost and experience benefits.
Proactive Service: Leveraging AI and real-time data, banks can anticipate customer needs—such as potential financial distress—and intervene early with tailored support, building long-term loyalty.

Action Steps for Regional Bank Leaders

Map the Customer Journey: Use service design to identify pain points, redundancies, and opportunities for automation or self-service.
Invest in Human-Centered Design: Ensure every digital and human touchpoint is intuitive, accessible, and aligned with customer needs.
Leverage Data and AI: Analyze customer interactions to predict needs, triage requests, and personalize support.
Empower Employees: Equip staff with unified tools and information to resolve issues quickly and effectively.
Pilot and Scale: Start with high-impact journeys, measure results, and scale successful approaches across the organization.

The Path Forward: Thriving in a Digital-First Era

For regional banks, the future belongs to those who put the customer at the center of every decision. By leveraging the CXGX framework, these institutions can transform their customer experience, differentiate in a crowded market, and drive sustainable growth—without sacrificing the local relationships that define their brand. The time to act is now. With the right strategy, tools, and mindset, regional banks can not only keep pace with digital disruptors but set new standards for what great banking looks like in their communities.

Ready to unlock the full potential of your customer experience? Connect with Publicis Sapient’s financial services experts to start your CXGX journey today.