While a large majority of banking customers in India trust banks with their personal data, confidence declines when it comes to fraud resolution and customer support during disputes, according to a report by EY.

The report highlighted that trust has emerged as one of the biggest differentiators for banks as customer expectations continue to evolve beyond products and pricing.

It stated, "Trust remains the ultimate differentiator. Although 82 per cent customers trust banks with their data, only 73 per cent believe fraud is resolved effectively".

The survey, conducted among 2,030 customers, showed that banking customers are increasingly prioritising security, transparency and reliable customer support over promotional offers and discounts.

The report noted that customers now compare their banking experiences with the best experiences across industries rather than with other banks alone.

It stated that customer experience is increasingly influenced by perceptions, emotional drivers and the quality of interaction across digital and physical channels.

The report added that while branding and marketing help create awareness, onboarding becomes the first real test of customer experience.

According to the findings, 88 per cent of customers found account opening convenient, but the experience weakens when customers face branch visit requirements, delays in processing and weak communication.

The report also highlighted growing demand for seamless omnichannel banking services, where customers expect smooth movement between mobile apps, websites, branches, contact centres, WhatsApp and chatbots without disruptions.

Customers increasingly want both the convenience of digital banking and the reassurance of physical branch support, it added.

The report further stated that 89 per cent of customers want unified banking services and faster dispute resolution processes.

At the same time, 59 per cent of customers expect AI-powered personalised financial guidance from banks to help improve decision-making and financial planning.

According to the report, meeting these expectations will require banks to move beyond incremental operational changes and focus on deeper customer experience transformation.

The report concluded that customer experience is no longer an additional feature for banks, but has become a core factor for long-term customer loyalty and differentiation in the banking sector.

Published on May 20, 2026