Customer Experience in Banking: Lessons from Australia’s Digital Transformation Journey

Introduction

Australia’s banking sector is undergoing a profound transformation, shaped by shifting customer expectations, rapid technological advances, and a unique set of societal and regulatory challenges. As banks strive to deliver seamless, secure, and inclusive experiences, the Australian context offers valuable lessons for the global industry. This page explores how Australian banks are navigating the physical-digital service dichotomy, the evolving role of branches, cash and inclusion, scam prevention, and the rise of green banking. Drawing on recent research and customer insights, we highlight what makes the Australian market distinct, the expectations of different demographic groups, and how banks can balance innovation with trust, accessibility, and societal responsibility. We conclude with actionable recommendations and Publicis Sapient’s perspective on supporting banks in this dynamic environment.

The Physical-Digital Dichotomy: Personalisation in a Hybrid World

Australian customers continue to value personalised service, with 74% expecting it from their banks. This expectation is strongest among younger generations (80% of 18–28-year-olds), but remains significant even among older Australians. However, as digital adoption accelerates, many customers feel that personal service is being eroded. Comments such as “less banks, less staff = less service” and nostalgia for the days when “one person looked after your portfolio” reflect a desire for human connection, even as digital channels proliferate.

Banks face the challenge of delivering personalisation at scale across both physical and digital touchpoints. AI and automation are seen as double-edged swords: 58% of Australians believe these technologies will improve their banking experience, but 42% fear they will make it worse. Younger customers are more optimistic, while older generations are more cautious. Customers most want to see personalisation in customer service (49%), account management (37%), and financial planning (36%).

• Develop omnichannel strategies that blend digital efficiency with human empathy.
• Leverage AI to enhance, not replace, personal service—ensuring governance to address privacy, bias, and service quality.
• Invest in colleague experience and training to ensure staff can deliver value in both digital and physical settings.

The Evolving Role of Branches and Cash: Inclusion and Community

Despite the digital shift, branches remain relevant: 72% of Australians have visited a branch in the past six months, with ATM services, customer service, and cash transactions as top reasons. Cash is especially vital 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 see value in cash.

Branch closures and the reduction of 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 (72% would pay nothing), but younger and gig-economy workers are more open to fees.

• Maintain accessible cash and branch services, especially for vulnerable and regional customers.
• Accelerate digital readiness while providing education and support to help all customers adapt.
• Explore alternative models for cash access to avoid disenfranchising segments of the population.

Scam Prevention and Security: Building Trust in a Digital Age

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, and 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 scam prevention, detection, and customer education. The emotional impact of scams is significant, and customers value not just the outcome but the quality of support they receive.

• Invest in advanced scam detection and prevention technologies.
• Provide clear, empathetic support and education to customers.
• Set realistic expectations about bank responsibilities, while striving to exceed them in moments of need.

The Cost-of-Living Crisis: Proactive Customer Care

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.

• Use data and AI to proactively identify and support customers in financial distress.
• Streamline assistance processes to make them more accessible and empathetic.
• View customer care as a lifecycle responsibility, not just a crisis response.

The Green Horizon: Meeting Societal Expectations

Sustainability is rising on the agenda. Forty percent of Australians would pay more for green banking products, and this figure is higher among younger generations. Customers are motivated by values, a desire to support important issues, and a wish to be part of the solution. However, nearly half believe green products should not cost more, and 13% do not support these initiatives.

• Develop green products that are accessible and competitively priced.
• Communicate the value and impact of green banking clearly to customers.
• Integrate sustainability into the core banking proposition, not just as a reporting exercise.

What Makes the Australian Context Distinct?

• Demographic Diversity: Australia’s population spans urban, regional, and remote communities, with varying needs for digital and physical services.
• Regulatory Backdrop: The legacy of the Royal Commission means trust and accountability are under scrutiny. Only 13% of Australians express respect for the banking sector, and most have not seen significant change since the Commission.
• Societal Expectations: There is a strong expectation for banks to balance innovation with inclusion, security, and social responsibility.

Publicis Sapient’s Perspective: Supporting Banks in Australia

At Publicis Sapient, we believe the future of banking in Australia lies in balancing digital innovation with trust, accessibility, and societal value. Our approach is grounded in:

• Customer-Led Transformation: Using deep research and data-driven insights to understand evolving needs across demographic groups.
• Omnichannel Experience Design: Creating seamless journeys that blend digital and physical touchpoints, tailored to the Australian context.
• Responsible AI and Data: Leveraging technology to personalise and protect, with robust governance to ensure fairness and transparency.
• Sustainable Growth: Helping banks develop green products and strategies that align with customer values and regulatory expectations.

Actionable Recommendations for Banks

1. Invest in Omnichannel Personalisation: Blend digital and human service to meet diverse customer needs.
2. Safeguard Inclusion: Ensure cash and branch services remain accessible, especially for vulnerable and regional customers.
3. Lead on Security: Make scam prevention and customer education central to your proposition.
4. Be Proactive in Customer Care: Use data to anticipate and address financial stress before it escalates.
5. Embrace Sustainability: Develop green products and communicate their value clearly.
6. Rebuild Trust: Demonstrate accountability and transparency in every interaction.

Conclusion

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. Publicis Sapient stands ready to partner with banks on this journey—helping them navigate complexity, unlock innovation, and build a future where every customer feels valued, secure, and included.

To learn more or to book a workshop tailored to your organisation’s needs, contact our financial services experts in Australia.