Behind the Numbers: EMARKETER Podcast
Episode: Banks Are Failing Customers — Financial Life Stage Planning Is the Missing Link | The Banking & Payments Show
Release Date: June 10, 2025

Introduction

In this insightful episode of "Behind the Numbers", hosted by Rob Rubin, EMARKETER delves into a critical issue plaguing the banking industry: why banks are failing their customers and explores financial life stage planning as the essential missing link. Joined by Principal Analyst Tiffany Montes and Banking Analyst Lauren Ashcraft, the discussion navigates the complexities of customer experience (CX) in banking, the rise of fintech competitors, and strategic shifts necessary for banks to regain customer trust and satisfaction.

Breaking Down CX Myths in Banking

The episode kicks off with a lightning round where the guests debunk common myths surrounding customer experience in banking.

• Tiffany Montes challenges the notion that products must be perfect upon initial launch:

  "I think consumers understand that technology moves quickly and they know that experiences will only get better."
  (01:28)

• Lauren Ashcraft addresses the stereotype that larger banks inherently provide superior digital experiences:

  "Recent surveys just came out showing that credit unions are more satisfied with their overall experience."
  (01:54)

This segment underscores the evolving expectations of consumers and highlights how even smaller financial institutions are excelling in areas traditionally dominated by bigger banks.

Fintechs: The New Threats to Big Banks

Rob Rubin steers the conversation toward the impact of fintech companies on the banking landscape.

• Tiffany Montes and Lauren Ashcraft identify Chime and emerging big tech/payment players as significant competitors that threaten traditional banking models:

  "They can own cash management and take that away."
  (02:29)*
  "They can get closer to every single purchase that a consumer makes."
  (02:50)

The discussion emphasizes how fintechs, with their customer-centric approaches, are poised to capture significant market share by addressing real-time financial needs more effectively than traditional banks.

AI-Generated Headlines: Identifying Banking Shortcomings

In a unique segment, Rob leverages EMARKETER's new AI chatbot to generate a headline addressing why banks are struggling to meet customer needs:

"US Banks Struggle to Meet Customers' Needs: Innovation and Service Gaps Persist."

The AI identifies five core issues:

1. High fees
2. Poor customer service
3. Erosion of trust
4. Limited access to banking services
5. Lack of innovation

Lauren Ashcraft critiques the AI's list by adding depth:

"A lot of [credit unions] do still have some pretty high fees."
(04:26)*

Tiffany Montes points out nuances such as the omission of security and fraud, suggesting these may fall under the broader category of trust erosion:

"I think that it's safe here could [sic] be addressed in erosion of trust."
(05:56)*

Erosion of Trust: A Generational Challenge

A significant portion of the conversation centers on Gen Z's distrust of banks.

• Lauren Ashcraft shares a compelling statistic:

  "Trust is even harder to earn among Gen Zers, and they're the least likely to trust banks as a whole."
  (06:26)*

Rob Rubin probes into the reasons behind this generational shift:

"I wonder if part of it is their sort of experience at that particular age in their life and therefore like their trust of things is a little different."
(07:03)*

Lauren Ashcraft attributes this distrust to both personal financial observations and the pervasive nature of modern marketing tactics:

"Whenever banks are marketing to them, the more authentic types of social media content seem to work better."
(07:57)*

Transforming Banks: From Product-Led to Customer-Centric

In the episode's final segment, the panel engages in a creative role-play where Tiffany Montes interviews for the role of Chief Customer Experience Officer (CXO) at a bank, with Lauren Ashcraft as CEO and Rob Rubin as CFO.

Key Insights from Tiffany Montes:

• Difference Between Product-Led and Customer-Centric Organizations:

  "Product-led organizations typically sell products by lines of business... whereas a customer-centric organization... offers the right products, service, and experience that aligns with that."
  (09:50)*

• Strategic Shift for Banks:
  Tiffany emphasizes the necessity for banks to integrate financial products into the broader context of customers' life stages. She illustrates this with examples like vehicle ownership, where banks can offer tailored financial guidance beyond mere product offerings:

  "It becomes more about how do you actually understand where someone is in their life and... building experiences around educating, advising, guiding and growing alongside them."
  (11:51)*

• Consumer Desire for Comprehensive Financial Planning:
  Referencing a study, Tiffany highlights that over 60% of consumers find value in app features that assist with life stage-related financial planning, such as retirement, taxes, vehicle maintenance, and homeownership:

  "Being able to do it all across life."
  (12:56)*

Lauren Ashcraft underscores the urgency for banks to emulate fintechs by adopting a customer-centric approach, noting that while fintechs like Chime effectively target specific customer needs, traditional banks struggle due to their fragmented, product-centric structures:

"While the clock is ticking, these fintechs are expanding so there really is some urgency there."
(20:45)*

Rob Rubin suggests that banks could reorganize into separate life stage-focused divisions or integrate their products into third-party applications to better meet customer needs wherever they are:

"Be the product, be the superpower and go everywhere where your customers want your products and services."
(21:20)*

Conclusion: Embracing Change for Customer Success

The episode wraps up with a light-hearted exchange, reinforcing the collaborative and forward-thinking spirit needed to drive transformation in the banking sector. The conversation leaves listeners with a clear understanding that financial life stage planning and a customer-centric approach are pivotal for banks aiming to fulfill customer needs and regain trust in an increasingly competitive and dynamic market.

Notable Final Takeaway:

"Be the superpower and go everywhere where your customers want your products and services."
(21:20)*

This encapsulates the essence of the episode: banks must transcend traditional, siloed operations and embrace a holistic, integrated strategy to serve customers effectively throughout their financial journeys.

Key Quotes Recap

• Tiffany Montes:

  "I think consumers understand that technology moves quickly and they know that experiences will only get better."
  (01:28)

• Lauren Ashcraft:

  "Trust is even harder to earn among Gen Zers, and they're the least likely to trust banks as a whole."
  (06:26)

• Tiffany Montes:

  "It would be very difficult to be both [product-led and customer-centric]."
  (09:50)

• Rob Rubin:

  "Be the product, be the superpower and go everywhere where your customers want your products and services."
  (21:20)

Stay Tuned

For more in-depth analysis and discussions on the evolving landscape of digital media and marketing, tune in to "Behind the Numbers" with EMARKETER. New episodes are published Monday through Friday on all major podcast platforms.