AI-driven personalized banking services are becoming table stakes for customer growth and retention. 

“We’re seeing strong demand from banks and credit unions for deeper personalization, and it goes beyond only retaining clients,” Udi Ziv, chief executive at behavioral banking service provider Personetics, told FinAi News. “Today, financial institutions aren’t just competing with each other, they’re competing with the digital experience consumers get from every other app on their phone.”

Account holders are accustomed to highly individualized, intuitive interactions that not only give them guidance, but help them turn that guidance into real financial outcomes, Ziv said. 

Amazon, for example, keeps track of customer purchases and reminds consumers that it’s time for a refill of a product that they ordered some time ago, Ziv previously said, adding that banks need to compete with the other apps on a consumer’s phoneor risk losing them. 

“For institutions focused on revenue growth, this level of personalization is no longer optional.” Ziv said. 

“By integrating AI-powered, proactive insights into the digital experience, FIs can strengthen existing relationships and differentiate themselves in attracting new clients who expect their bank to understand their needs and support them in real time,” he said.

Credit union taps Personetics 

St. Catherine, Canada-based Meridian Credit Union, for one, has teamed with Personetics to power its AI-driven money management and advice experience inside its digital platform, according to Personetics. 

The AI works behind the scenes to enrich transaction data in real time, categorize purchases, spot recurring patterns and predict future balances, Matthew Seagrim, chief digital and marketing officer at $TKTK Meridian, told FinAi News. 

“This allows us to help members understand what they can comfortably save and stay on track with their goals,” Seagrim said. “Through Personetics’ advanced machine learning models and its Engagement Builder tool, we can design insights that reflect both actual and predicted account activity, while aligning with the personalized experience we deliver.” 

Members increasingly expect personalized financial guidance, Seagrim said, adding that while the deployment is in its early stages, members’ reactions have been positive. 

“They’re telling us that automated insights are replacing the need for manual budgeting and giving them a clearer, more consolidated view of their financial health,” Seagrim said. “Members especially value being able to spot spending trends, identify unused subscriptions to cancel and track bills more effectively.” 

Addition of gen AI 

Personetics is working to embed gen AI in its offerings, Ziv said, adding that the company is building a platform that will be LLM-agnostic or multi-model. 

“Gen AI adds new capabilities [to our platform] by enabling more natural, contextual and personalized financial guidance,” he said. “It’s LLM-agnostic, compatible with [Microsoft] Azure, Anthropic and OpenAI, allowing banks to align with their enterprise AI strategy without compromising security or control.” 

KeyBank, Avidia Bank and Truist are some of Personetics’ clients. 

Rise of personalized banking 

Personalized banking and conversational banking are expected to reach an inflection point in the coming months due to AI advances, Aurelie L’Hostis, principal analyst at consultancy Forrester,told FinAi News.  

“The future of digital banking will be defined by modern, intuitive and human-centered interfaces,” L’Hostis said. “AI-powered virtual assistants will observe, gather information, learn and communicate with consumers proactively.” 

Personalized banking will allow financial institutions to gain deeper understanding about a customer’s needs and meet them when the time is right, which will drive loyalty, L’Hostis said.  

“It’s like striking the metal when it’s hot,” she said. 

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