European banks face a widening gap between what customers increasingly expect and what many financial institutions are currently delivering, particularly around payments, personalization, digital experiences and artificial intelligence.
New research covering more than 2,500 banking consumers globally found that 71% of European respondents were only moderately satisfied or less with their primary financial institution. The findings suggest that banks can no longer rely as heavily on customer inertia as consumers demand more relevant advice, better digital interactions and responsible use of AI.
Key Overview
- 71% of European customers were only moderately satisfied or less with their primary bank.
- Payment services were a source of dissatisfaction for 54% of European respondents.
- Around 57% want more financial guidance from their bank.
- 51% want banking apps to better anticipate their needs.
- 68% of global consumers would use conversational AI for banking queries.
- Privacy and data security concern 49% of European consumers when considering AI banking services.
- Only 4% of banks rank customer-experience personalization as their top investment priority.
- 46% of banks globally plan major core-system changes or full replacements in 2027.
European Customers Want More From Their Banks
The findings expose a significant customer-experience challenge across European banking.
Around 54% of European customers reported dissatisfaction with payment services, while approximately 34% pointed to weaknesses in digital experiences. At the same time, customers increasingly expect banks to go beyond basic account management and provide more proactive assistance.
The research shows that 57% of European consumers want more financial guidance, while 51% would like their bank to better anticipate their needs when they open an app or contact the institution.
Another 42% want rates, rewards or other benefits to better reflect the size or length of their banking relationship.
The pattern is also visible globally. More than half of consumers surveyed want greater financial guidance, yet only 4% of banks identified personalization as their highest investment priority.
AI Interest Is Growing, but Trust Has Limits
Artificial intelligence could help banks close some of these service gaps, but consumers remain selective about how much authority they are willing to hand over.
Globally, 68% of respondents said they would use a conversational interface for banking queries, demonstrating strong interest in using AI to obtain information and manage routine interactions.
Enthusiasm weakens when AI begins making decisions or taking financial actions independently. Fewer than half of consumers said they would definitely use AI systems that manage purchases or routine payments on their behalf.
Trust is the major obstacle. Among European respondents, 49% cited privacy and data security concerns, while 40% worried about inaccurate decisions.
Separate 2026 research has shown a similar divide: consumers increasingly use generative AI for financial research but remain far more cautious about sharing sensitive information or allowing autonomous financial actions.
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Banks Face Pressure to Modernize Core Systems
The customer-experience challenge is closely linked to banks’ underlying technology.
Legacy systems can make it harder to combine customer information, launch personalized products quickly or integrate AI directly into banking journeys. Financial institutions are therefore beginning to accelerate modernization plans.
Almost 46% of banks globally expect to make major changes to or completely replace their core banking systems in 2027, while more than one-fifth plan to expand AI into customer-facing services.
This represents a shift from AI being used mainly for internal functions such as efficiency, fraud detection and automation toward direct interaction with customers.
However, modernization alone may not solve the problem. Banks will also need governance frameworks that protect customer data, allow human intervention and ensure automated recommendations can be explained and corrected.
The “Switchable Middle” Creates Competitive Pressure
The research describes a large group of customers as the “switchable middle” — consumers who are not necessarily deeply dissatisfied but whose loyalty should not be assumed.
Globally, nearly three-quarters of respondents were only moderately satisfied or less with their main financial institution, while one in four had recently considered changing their primary bank.
This distinction matters. The data does not suggest that three-quarters of customers are preparing to leave immediately. Instead, it indicates a large pool of customers whose relationships may be vulnerable if competing banks or fintech platforms offer better rates, smoother digital services or more relevant financial guidance.
For European banks, the challenge is increasingly becoming one of relevance rather than simply access. Customers already expect digital banking; the next competitive frontier is whether that experience can become more personalized, proactive and intelligent without sacrificing trust.
The institutions that narrow this expectation gap will need to combine modern core infrastructure with carefully governed AI and meaningful human support rather than treating automation as a replacement for the banking relationship.
Sources: Temenos / Celent / FF News / MarketScreener / Deloitte
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