Moving from one size fits all to tailored value propositions for retail banking

Over the past decade, digital transformation has revolutionized retail banking. Banks now deliver seamless, fast, and secure digital transactions at scale. But somewhere along the way, something important was lost: the personal touch that once defined customer relationships.

Today, customers view banking apps as interchangeable, with 54% saying they all look and feel the same. Meanwhile, 70% of new accounts go unused after onboarding, leaving banks with “empty shells” that cost more to maintain than they deliver in value.

At Backbase ENGAGE Europe, I explored how retail banks can rise above these challenges by embracing a relationship-centric approach powered by tailored value propositions. Using Backbase’s Engagement Banking Platform, banks can differentiate their offerings, deepen customer relationships, and maximize lifetime value by delivering personalized experiences at scale.

Customers expect their bank to understand and anticipate their needs. With the right technology, you can design banking experiences that are more than transactional — they’re transformational.

Here are three ways Backbase’s platform helps banks build customer loyalty:

1. Acquiring and activating customers with relevance

Winning customers is just the first step. The real challenge lies in activating those accounts and converting new users into fully engaged customers.

Using data-driven insights, our platform tailors onboarding journeys to each customer’s profile and goals. Imagine a young professional saving for their first home. Instead of presenting generic account options, our system recommends a personalized savings package, complete with budgeting tools and a competitive mortgage pre-qualification.

Through seamless onboarding and targeted offers, banks can not only drive account activation but also build a foundation for long-term engagement.

2. Expanding relationships through tailored solutions

Customers’ financial needs evolve as they move through life. By offering relevant products at the right time, banks can grow their share of wallet while boosting customer satisfaction.

For instance, consider two customers:

• Aisha, a 40-year-old professional looking to grow her wealth through investments.

• Dirk, a family man saving for his children’s education.

   

With Backbase’s composable platform, their banking apps would look and function differently. Aisha’s dashboard might prioritize investment performance and portfolio management, while Dirk’s focuses on savings goals and family financial planning. Both receive targeted recommendations tailored to their specific needs, driving deeper engagement.

3. Retaining customers with connected ecosystems

Modern banking isn’t just about serving individuals — it’s about supporting their entire financial ecosystem. From joint accounts for families to tools for managing shared expenses with roommates, our platform enables banks to embed themselves into customers’ daily lives.

Take Dirk’s daughter, Elly, for example. With our parent-child account feature, Dirk can effortlessly deposit her allowance, set spending limits, and co-create savings goals. Meanwhile, Elly gains valuable financial literacy and a strong connection to her first banking experience.

By fostering these ecosystem connections, banks can strengthen loyalty and ensure the next generation of customers starts their journey with them.

To succeed in today’s competitive landscape, banks must provide personalized experiences for every customer, at every stage of their journey. Backbase’s Engagement Banking Platform makes this possible with:

• Dynamic segmentation: Go beyond broad demographics to tailor experiences by life stage, income, and financial goals.

• Composable solutions: Assemble unique dashboards, navigation options, and features for each segment or individual user.

• AI-driven insights: Leverage real-time data to recommend the most relevant products and services at the perfect moment.

Retail banking is no longer about offering one-size-fits-all solutions. It’s about crafting experiences that make each customer feel seen, understood, and valued.

With Backbase’s technology, you can transform your digital channels into growth platforms, driving engagement, loyalty, and lifetime value. Whether it’s activating new accounts, expanding relationships, or retaining customers through ecosystem connections, the future of retail banking is personal — and it’s powered by Backbase.

Ready to reimagine your banking experience? Let’s talk