The future of retail banking

Thriving in an evolving environment

Banks are navigating an increasingly crowded financial services ecosystem where collaboration—and competition—have blurred traditional lines and introduced new players. Layer in an ambiguous regulatory landscape, mounting fraud pressures and the ongoing need for cost vigilance, and the question isn’t simply just how to stay competitive but how to thrive and excel in this evolving environment.

Thriving requires more than observation—it demands action, and the retail banks that proactively shape their future will be the ones that lead it. To not only attract but retain customers, banks must sharpen their value propositions, rethink internal operations, and invest in capabilities and people that help them connect in more meaningful ways. This is especially crucial as it becomes easier than ever for customers to change how they bank and who they bank with. Digital innovation, tailored service models, and strategic partnerships will be key, as will preparedness for regulatory changes and a strong technology infrastructure.

That’s why now is the time to act—not with reactive or defensive measures but with forward-looking moves that are relevant and create real, sustained advantage. Deloitte has identified 10 strategic actions that can position retail banks to take control of their trajectory. The way we see it, the future of retail banking isn’t something to brace for—it’s something to define.

10 high-impact moves to differentiate your business

1. Personalize for a segment of one
   To be more attuned to customers, retail banks need to apply advanced segmentation techniques that tap behavioral data life-stage insights and real-time patterns to illuminate the needs of particular subsegments, micro-segments, and ultimately, segments of one.
2. Reduce channel friction
   Today's consumers expect banking to be seamless across every touchpoint—but too often, they encounter a fragmented reality. The path forward demands three key actions: realigning incentives around customer outcomes rather than channel-specific metrics; integrating internal and branch platforms; and guiding customers to the most appropriate channel for their needs.
3. Leverage data to address customer pain points
   Too often, banks use customer data to promote products rather than solve customers’ real needs. Fixing this requires a fundamental shift from a product-centric to customer-centric approach. A centralized customer data platform (CDP) is a crucial starting point for creating a unified “golden record” for each customer.
4. Progressively modernize your core
   Each bank must determine the path forward based on its unique legacy infrastructure, competitive pressures, and long-term strategy. But one thing is clear: clinging to outdated technology will likely put banks at a competitive disadvantage. The future of retail banking lies in unlocking product innovation, enhancing customer interactions, improving fraud prevention, and more.
5. Stay ahead of regulatory expectations, with no regrets
   As the regulatory expectations shift and the specifics of new or revised regulations unfold, forward-thinking banks aren't waiting for perfect clarity—they're forging ahead with confident actions that will help position them as industry leaders and consumer advocates.
6. Stand guard together
   The cat-and-mouse game between retail banks and fraudsters has reached new levels of intensity and cost. Standing guard against fraud takes constant vigilance and evolution. But banks that get this right can transform fraud prevention from a top complaint category into a differentiating strength, protecting customers while delivering the smooth experiences life demands.
7. Partner for speed and access
   As customers demand faster, more connected experiences, banks are turning to third parties to accelerate innovation and market expansion. Instead of building new capabilities from scratch—a cost- and time-intensive endeavor—banks are leveraging partnerships to move at startup speed.
8. Win the small business customer
   The opportunity is ripe for forward-thinking retail banks to develop a compelling value proposition that gives small business owners tangible benefits for having multiple accounts—such as preferential pricing or bundled rewards. Not only does this do right by the customer, it allows banks to readily leverage the digital investments they’re already making on the retail side.
9. Evolve operations to fund growth
   Managing the cost of acquiring and serving customers is a constant balancing act for retail banks. One of the most powerful ways to achieve the right balance is by tapping into an opportunity within middle- and back-office functions. By modernizing these processes, banks can unlock efficiencies that effectively self-fund customer experience improvements, reducing expenses without compromising quality or growth.
10. Cultivate talent beyond the banking bubble
    The shift in retail banking toward digital and hybrid models demands new skills, new career paths, and new ways to measure performance. As banks rethink their operating models, they must also rethink who they hire, how they develop talent, and what they reward.

Redefine the industry on your terms

Retail banks that take decisive action today are better positioned to survive the changes ahead and set the standard for what’s next. The ten strategic actions outlined in this report are practical, high-impact moves that will help differentiate leaders from laggards. From reimagining customer engagement and operational efficiency to harnessing technology, strengthening partnerships, and navigating regulatory shifts, each is a building block toward long-term resilience and growth.

The future of retail banking is being shaped in real time. By acting now, banks have the opportunity to redefine the industry on their terms, getting ahead—and staying ahead of competitors.