The EY report, Customer Experience Reimagined: The New Frontier for Indian Banking in 2026, based on a survey of 2,030 customers, found that 55% want improved digital support across channels. While about 70% of customers feel their banks understand their financial needs, gaps persist in speed, clarity and consistency of service.
EY said banking competition is shifting from products and pricing to customer experience (CX) as the core differentiator.
The study identified seven customer personas driving banking behaviour, including young digital-first users, professionals, entrepreneurs, affluent urban customers, rural users, pre-retirees and working women.
Branch usage remains significant despite digital growth. Around 68% of middle-age entrepreneurs use branches for cash transactions, while 52% of mass-affluent urban customers still depend on branch services. In rural areas, 56% visit branches for basic transactions.
Mobile banking shows strong uptake, with 74–79% of younger and urban segments rating their experience positively. However, chatbot usage remains low, with trust emerging as a key barrier.
AI-driven personalization is gaining traction, with 49% of rising professionals and 51% of entrepreneurs prioritising AI tools such as automated savings and budgeting. Yet only a quarter of customers rate their overall banking experience as “excellent.”
Onboarding remains largely smooth for most users, with 88% finding account opening convenient, though digital-only onboarding is still uneven across segments.
EY noted that banks must balance automation with human interaction to improve CX outcomes.
“Banks must balance automation with the human touch to maintain empathy and scale personalization,” said Pratik Shah, National Financial Services Leader at EY India.
Aarthy Rangarajan, Partner – Financial Services, EY India, said CX has become a “necessity rather than a luxury,” as fintechs reshape customer expectations.
The report also introduces the EXCEL framework—Empathy, eXecution, Convenience, Empowerment and Listening—as a roadmap for improving banking experience and customer loyalty.
