In an industry historically defined by rigid structures and conservative approaches, financial services firms are undergoing a fundamental shift in how they develop products and services. The new currency gaining value isn’t cryptocurrency or traditional finance—it’s customer feedback.
Recent data from McKinsey indicates that financial institutions that prioritize customer experience deliver 3 times higher shareholder returns compared to laggards. This stark reality is pushing executives across banking, payments, and fintech to recalibrate their approach to product development.
“The days of building products in isolation and hoping customers will adapt are over,” says Melissa Jenkins, Chief Product Officer at FirstBank Digital. “We’re seeing a complete reversal of the traditional model. Now, customer feedback drives our roadmap from day one.”
This transition represents more than just a tactical adjustment. According to a comprehensive survey by PwC involving over 5,000 financial services customers, 73% reported they would switch providers based on poor experiences—a figure that has increased 18 percentage points since 2019.
The trend is particularly pronounced in payments, where disruptive fintechs have conditioned consumers to expect seamless, intuitive experiences. Traditional players are responding by formalizing feedback mechanisms throughout their organizations.
JPMorgan Chase recently expanded its customer advisory panels program, bringing together diverse customer segments quarterly to provide direct input on products in development. The initiative has reportedly influenced several major feature launches across their retail and commercial banking platforms.
“We’ve moved away from the engineering-first mentality,” explains Ryan Thompson, VP of Customer Experience at Stripe. “The most successful financial services companies today are those that have built systematic ways to capture, analyze and implement customer insights.”
The Federal Reserve Bank of Boston’s 2023 Consumer Payments Research Center report reinforces this shift, noting that financial institutions with robust customer feedback programs demonstrated 27% higher new product adoption rates than competitors.
This evolution comes with significant challenges. Financial services firms must balance heightened regulatory requirements with the agility needed to respond to customer needs. They must also overcome organizational silos that traditionally separated product development from customer service functions.
“It’s a cultural transformation more than a technological one,” observes Dr. Sarah Wilkins, Financial Services Industry Analyst at Forrester Research. “The companies seeing the most success have leadership that’s committed to breaking down internal barriers and elevating the customer voice throughout the organization.”
Small and mid-sized financial institutions face particular hurdles, often lacking the resources to implement sophisticated voice-of-customer programs. Community banks and credit unions are increasingly partnering with fintech providers to access tools that democratize customer listening capabilities.
The Federal Deposit Insurance Corporation (FDIC) has noted this trend, with Chairman Martin Gruenberg recently highlighting how “community financial institutions are leveraging partnerships to enhance their customer feedback capabilities, allowing them to compete effectively against larger players with greater resources.”
Investment in these capabilities continues to accelerate. Financial services firms increased spending on customer feedback technologies by 34% in 2023, according to Gartner research. These investments span AI-powered analytics tools, customer journey mapping platforms, and real-time feedback collection mechanisms.
Beyond tools, progressive financial institutions are restructuring teams and incentives to prioritize customer-centricity. Capital One has incorporated customer satisfaction metrics into compensation structures across the organization, while American Express has established dedicated “customer champions” within each product team.
“The companies that will thrive in the next decade of financial services are those building a systematic approach to customer listening,” says Michael Fernandez, CEO of financial services consultancy Caliber Strategy. “It’s no longer a nice-to-have—it’s the difference between relevance and obsolescence.”
For consumers, this evolution promises more intuitive financial products, reduced friction, and services better aligned with their actual needs rather than what institutions think they need.
The shift also brings potential economic benefits. Boston Consulting Group estimates that financial institutions could unlock $170 billion in additional annual revenue by 2026 through improved customer experiences driven by better listening capabilities.
As financial services continue this customer-centric transformation, the institutions poised for success are those that view feedback not as a defensive mechanism but as their most valuable competitive intelligence. In an industry built on numbers and data, the most critical figures may now be customer satisfaction scores and net promoter ratings.
“We’ve entered an era where the most powerful action in financial services isn’t speaking—it’s listening,” concludes Barbara Chen, Chief Innovation Officer at Visa. “The institutions that master this skill will define the next generation of banking and payments.”
