CX in Financial Services: What KPMG's Data Reveals

Financial institutions operate in one of the most regulated and competitive markets. Customers expect more than correct transaction handling: they expect trust, relevance, and an experience that feels personal. KPMG's Global Customer Experience Excellence 2025-2026 report gives us precise data on where the sector stands and what separates the best from the rest.

Banking: The 4th Best Sector Globally

With a CEE score of 7.52, banking ranks as the 4th best sector in KPMG's global benchmark, surpassed only by Healthcare (7.90), Non-Grocery Retail (7.65), and Grocery Retail (7.54).

It's a strong position, but the interesting part is what drives the improvement.

Empathy and Expectations: The Surprising Drivers

Banking improved 0.7% year-over-year. The two primary drivers were:

• Empathy: +1.4% — the largest improvement across all pillars
• Expectations: +1.3% — the second-largest improvement

This is remarkable. In a sector often associated with digital transformation and technological innovation, it's the human dimensions that drive the greatest progress.

What Does Empathy Mean in Banking?

Empathy in banking means:

• Understanding the customer's financial situation and concerns
• Communicating with respect and understanding, especially in vulnerable situations (debt, loss, complex decisions)
• Proactively offering solutions that match the customer's life situation, not just the bank's product catalogue
• Demonstrating that the bank acts in the customer's interest, not just its own

What Does Expectations Management Mean?

Expectations is about:

• Clear communication about what the customer can expect (response times, processes, terms)
• Proactive information when something changes
• Consistent delivery across digital and physical channels
• Exceeding expectations in the moments that matter

Banking as an Early AI Adopter

Financial institutions are among the first to adopt AI at scale. The report highlights:

• Fraud detection: AI-driven real-time fraud prevention
• Hyper-personalization: AI-based product recommendations and offers
• Risk management: Advanced models for credit scoring and customer segmentation

An Australian bank reported a 40% jump in engagement after deploying an AI-powered "customer brain" across 75% of all interactions.

But Infrastructure Lags Behind

KPMG notes that only 25% of banks have enterprise-wide cloud or hybrid-cloud platforms strategically supporting data-driven services. This means the majority still struggles with data silos, legacy systems, and fragmented customer views.

What the Best Financial Institutions Do Differently

Based on the report's findings, we can identify five characteristics of CX-leading banks:

1. They Combine Digital Efficiency with Personal Engagement

Technology removes friction, but it doesn't replace human connection. The best banks use AI to free up time, which employees invest in deeper customer relationships.

2. They Measure Broader Than NPS

NPS is important, but it's not enough. CX leaders measure the underlying dimensions (trust, empathy, expectations) to understand what drives the score.

3. They Act Systematically on Feedback

Collecting data isn't enough. The best companies have designed processes for Close the Loop: systematic follow-up that ensures feedback leads to concrete improvements.

4. They Invest in Employee Empowerment

Total Experience is about connecting customer and employee experience. Banks that give frontline employees autonomy, tools, and insight perform better on empathy and resolution.

5. They See CX as a Growth Discipline, Not a Support Function

CX leaders in banking have elevated customer satisfaction from a support metric to a strategic KPI with direct connection to revenue and growth.

What This Means for Financial Institutions

SurveyGauge works with several of Europe's leading financial institutions, including Nordea, Danske Bank, and Societe Generale. Based on KPMG's findings, we recommend:

Prioritize Empathy in Your CX Programme

Empathy is the pillar driving the largest improvement in banking globally. Measure it explicitly, and use insights to train and equip your customer-facing teams.

Build a Coherent Customer View

Personalization requires data flowing across systems. SurveyGauge's 5,000+ CRM/ERP integrations create the foundation for a unified customer view.

Automate the Administrative, Prioritize the Strategic

With SurveyGauge's administration model, your team spends 2-6 hours per month. The rest of the time can be invested in acting on insights.

Make Close the Loop a Core Discipline

Resolution is a strong NPS driver. Automate follow-up with dissatisfied customers, and ensure feedback always leads to action.

How SurveyGauge Helps Financial Institutions

Our model of Platform + Administration + Advisory is built for complex, regulated enterprises:

• Compliance-ready: Full GDPR compliance, secure data processing, audit trails
• Multi-entity support: Measure across business units, markets, and legal entities
• AI-powered analysis: Sentiment analysis and pattern recognition in open-ended responses
• Dedicated advisory: CX experts with financial sector experience
• Minimal internal burden: We handle the entire operational process

Source: KPMG Global Customer Experience Excellence 2025-2026, "Total Experience: Redefining excellence in the age of agentic AI"