Consumers use technology for almost everything in their daily lives.

324 million people were using the internet in the United States at the end of 2025, representing 93.1% of the population. For financial institutions, this raises an important question: will they embrace digital banking as a core part of their strategy, or risk falling behind?

Digital banking is already the dominant way consumers manage their accounts. According to the American Bankers Association’s 2025 survey, 54% of consumers primarily use a mobile banking app and another 22% primarily use online banking. Combined, digital channels are the preferred banking method for 76% of consumers, while only 9% primarily visit a branch.

Consumers rely on digital banking to complete everyday tasks, including:

• Checking account balances

• Paying bills

• Transferring money

• Depositing checks remotely

Digital banking has become the primary way consumers manage their money, but convenience alone doesn't guarantee a good customer experience. In the same ABA survey, 95% of respondents rated their bank’s online and mobile experience as good, very good or excellent. That high baseline means institutions are competing not simply to offer digital access, but to enhance digital access, making each interaction easier, more relevant and more useful.

Balance Digital Convenience With Human Service

One of the biggest challenges facing online-only financial institutions is service. While digital platforms offer convenience, they can lack the personal interaction consumers still value. J.D. Power’s 2026 U.S. Direct Banking Satisfaction Study found that online-only providers are successfully building personalized digital experiences, but struggling with customer-service quality and problem resolution. Traditional financial institutions have an opportunity to differentiate themselves by combining innovative digital experiences with relationship-driven service.

Institutions should focus on creating experiences that are:

• Easy to navigate

• Welcoming to customers

• Quick and intuitive to use

• Capable of connecting users with relevant products and services

Reduce Friction at Account Opening

The appeal of online banking ultimately comes down to convenience. Consumers expect fast, seamless tools that simplify day-to-day financial management. While many institutions have streamlined routine money-management features, the new account-opening process can still create unnecessary friction at one of the most important points in the relationship.

Every added step, confusing instruction or repeated request for information increases the likelihood that a prospective customer will leave before completing an application. Financial institutions should evaluate digital account opening from the consumer’s perspective and remove unnecessary complexity wherever possible.

Use AI to Create Faster, More Relevant Experiences

To address these challenges, financial institutions are now integrating artificial intelligence into digital banking processes. As of 2026:

• 35% of financial institutions used chatbots

• 26% used machine learning

• 5% deployed generative AI

The usage of these technologies has steadily increased since 2019 and will continue to increase in the future.

Finding a partner that offers AI products specifically for financial institutions can make the process of implementing AI less intimidating. For example, Strum Platform’s AI-driven insights and predictive triggers help financial institutions uncover patterns in customer data and translate them into actionable engagement opportunities. Rather than treating AI as a standalone feature, institutions can use it to support faster decisions, more relevant recommendations, and more efficient customer journeys.

Taking it one step further, the strongest implementations connect insight directly to action. Strum Voice enables credit unions and banks to build automated, personalized journeys using data-driven personas and predictive triggers across channels such as email, SMS and direct mail.

Make Personalization Feel Helpful, Not Transactional

Once financial institutions attract a digital customer, the next challenge is retaining that relationship. Digital platforms should reflect the brand the institution has built while delivering a straightforward, engaging experience that earns trust. Consumers should be able to navigate services confidently and efficiently, without feeling pushed toward products that do not match their needs.

Personalization plays an important role in strengthening relationships and retention. By integrating personalized recommendations and customizable features into digital platforms, institutions can create experiences that feel tailored rather than overly standardized, sales-focused or transactional.

To maximize the opportunity within digital banking, financial institutions should focus on creating platforms that are personalized to the user, simple to navigate, supported by exceptional service and authentic to the institution’s brand. The institutions that push forward will not be those that choose between technology and human connection. They will be the ones that use technology to make every relationship feel more personal.