The Future of Banking - Goodbye Channels, Hello Conversation

Over the years, banking has transformed dramatically. From personal face-to-face interactions to mobile apps and websites, we’ve seen a steady shift toward convenience and efficiency. But as we embrace new technologies, we’ve also lost something valuable: the personal connection and assistance in execution.

Now, with the rise of Generative AI (Gen AI), we’re on the verge of another revolution, the switch to channel-less banking. This is no longer just about making banking faster or easier. It’s about transcending traditional channels altogether and bringing back the personalized, relationship-driven experience in a way that fits our modern, digital-first world.

From Branches to Apps: The Rise of Transactions Over Relationships

When I was young, banking was deeply personal. You’d walk into a branch, and the banker would already know your financial situation. If you needed a loan, they’d handle everything—forms, approvals, and even advice on the best options for you. All you had to do was sit back, agree, and sign.

Fast forward to today, and banking has become much more transactional. Digital tools have made banking faster, always available and more accessible, but they’ve also put the burden on customers. Want a loan? Open an app, fill out endless forms, upload documents like your credit history and utility bills, and hope you’ve done everything correctly. And god forbid you start in one channel and get forced into another one, like starting in the app and ending up on the phone, or even at a branch office!

This might be “efficient,” but it’s far from seamless, personal or customer-centric in the way that we are starting to get used to with Gen AI tools and services.

Too Many Channels, Too Many Choices

Today’s banking experience revolves around channels. You have apps for mobile, websites for web banking, call centers for support, and physical branches for when things go wrong (or you just need that human touch). Each channel comes with its own interface, workflow, and limitations, forcing customers to adapt to the bank rather than the other way around.

And it’s not just the channels that are overwhelming, it’s the sheer volume of choices. Take loans, for example. Fixed-rate, variable-rate, green loans, peer-to-peer lending — the options are endless, and for most consumers, it’s impossible to figure out which one is best.

Applying for a mortgage is even more daunting. You’re asked to provide everything from tax returns to pay slips and bank statements, and you’re left to navigate a labyrinth of terms and conditions without any real guidance.

And a big frustration in all this, most banks already have this date available on you, but neglect to use it in a forward leaning way.

This complexity and fragmentation aren’t just inconvenient, they’re barriers to trust and engagement.

The Promise of Channel-less Banking

This is where the accelerated growth of Gen AI steps in to revolutionize the industry. Imagine a world where banking isn’t tied to apps, websites, or branches. Instead, it happens through seamless, natural conversations, whether you’re chatting with your smart speaker at home, texting from your phone, or even talking to your car’s dashboard while stuck in traffic.

Let’s say you’re considering a loan. Instead of hunting for documents and filling out forms, your AI banker could say:

“I see you’re interested in financing a new car. I’ve already gathered your credit history, income details, and utility records from the data you’ve shared with us. Based on this, I’ve pre-filled a loan application for €30,000 at the best rate available. Would you like to proceed?”

Or imagine applying for a mortgage. Rather than climbing the mountain of paperwork yourself, your AI banker might say:

“I’ve analyzed your financial profile and shortlisted three mortgage options tailored to your needs. I’ve pre-checked your eligibility, and all we need is your approval to proceed. Would you like me to explain the differences between the options?”

This isn’t just faster, it’s transformative. The AI does the heavy lifting, leaving you free to focus on what really matters: making informed decisions.

But the critical element in all this for me, is how this shift will break down the historical banking view of channels. The future of banking will be channel-less, and potentially completely invisible to the consumer.

Beyond Channels: The Personal Banking Revolution

The beauty of channel-less banking lies in its simplicity. It removes the friction of navigating between different channels and replaces it with a single, unified experience. Whether it’s voice, text, embedded, or augmented reality, the interaction feels natural and intuitive.

Even more importantly, it brings back the personal touch. Your AI banker doesn’t just know your financial history, it remembers past conversations, understands your preferences, and anticipates your needs. It’s like having a trusted advisor who’s always available, no matter where you are or what you’re doing.

For customers, this means a return to the kind of relationship-driven banking that builds trust and loyalty. For banks, it’s an opportunity to differentiate themselves in a competitive market by offering a truly seamless and personalized experience.

Why This Matters Now

As someone who’s spent decades in the banking industry, I’ve seen countless trends come and go. But this shift to channel-less banking feels different. It’s not just another trend, it’s a fundamental reimagining of how banks engage with their customers.

And the timing couldn’t be better. With the explosion of financial products and the growing complexity of managing personal finances along with embedded finance, customers are overwhelmed. They need more than tools, they need guidance.

Gen AI has the potential to provide that guidance at scale, helping customers make better decisions while also reducing the effort required to manage their finances. It’s a win-win for both banks and their customers.

The Risks of Standing Still

For banks that hesitate to engage with the shift toward channel-less, conversational banking, the risks are becoming increasingly apparent. Consumer behavior is evolving rapidly, and with it, the entire financial ecosystem. The days of customers being loyal to a single bank as their primary financial partner are long gone.

Today, multihoming, where consumers spread their financial activities across multiple banks, fintechs, and service providers is the norm. People use one app for budgeting, another for investments, a separate bank for savings, and yet another for payments. This fragmentation creates a significant opening for third parties to step in and unify the experience in ways that banks are failing to do.

If traditional banks don’t act, third-party providers such as fintech companies, BigTech players, and even niche startups are poised to seize the opportunity. They have the agility to innovate and the customer focus to develop these conversational and integrated capabilities quickly.

Picture this, instead of dealing directly with a bank’s clunky app or outdated website, a consumer turns to a third-party app that uses Gen AI to handle everything. This app becomes the customer’s gateway to all their financial needs, pulling data and services from various banks, but keeping the banks themselves hidden in the background.

Over time, the customer begins to see the third-party app and not the bank as their primary financial partner. The bank becomes little more than a backend utility, providing the infrastructure while someone else owns the customer relationship.

We’re already seeing early signs of this shift. Fintech companies like Revolut, Wise, and Klarna have built highly engaging, user-friendly platforms that keep customers coming back. BigTech companies like Apple, Google, and Amazon are dabbling in financial services, leveraging their massive ecosystems to offer seamless experiences. And with the rise of Embedded Finance, non-financial brands are integrating financial services directly into their customer journeys.

Losing the Customer Relationship

For banks, the customer relationship is everything. It’s the foundation for trust, loyalty, and, ultimately, revenue. If a bank loses that relationship to a third-party provider, it risks being reduced to a utility, a faceless provider of financial infrastructure with little opportunity to cross-sell or upsell.

Think about it, if a fintech app is the one helping customers manage their budgets, plan for retirement, and even get loans, why would the customer feel any loyalty to the bank behind the scenes?

The implications are far-reaching. Banks that lose the customer relationship will see declining revenues, reduced market share, and diminished influence in the financial ecosystem. And once that relationship is lost, it’s incredibly hard to win back. Unless this is a well defined strategy that the bank selects to adopt.

The Challenges Ahead

Of course, making this vision a reality won’t be without challenges. Banks will need to:

1. Upgrade Legacy Systems: Most banks are still running on infrastructure designed for yesterday’s channels. Transforming these systems is a massive but necessary step.

2. Build Trust: Customers need to feel confident that their data is secure and that the AI is working in their best interests. Transparency will be key.

3. Rethink Business Models: Moving from traditional banking to a platform-driven, outcome-focused model requires a fundamental shift in thinking.

4. Navigate Regulation: The use of AI in banking raises important questions about privacy, accountability, and compliance.

5. Change the Culture: Banks must move from a product-centric mindset to one that prioritizes customer outcomes.

What’s Next?

The shift to channel-less banking is just beginning, but the potential is enormous. Imagine a world where banking isn’t something you do, it’s something that happens naturally as part of your daily life.

Need to split a bill with friends? Your AI banker handles it. Planning a big purchase? Your AI advisor helps you save and suggests the best financing options. Concerned about retirement? Your AI proactively builds a plan and checks in with updates.

This isn’t just a better way to bank, it’s a fundamentally new relationship between banks and their customers.

As we look ahead, one thing is clear, the future of banking is personal again, but in a way that transcends traditional channels. It’s faster, smarter, and more human, even if it’s powered by AI.

So, what do you think? Are we ready for a world where banking isn’t tied to apps, websites, or branches? Can Gen AI deliver the seamless, personalized experience that customers need?

Let’s continue the conversation. Share your thoughts, drop a comment, or connect with me directly. Here’s to a future where banking isn’t just efficient, it’s personal, intuitive, and effortless.