The Capgemini Research Institute’s World Retail Banking Report 2025 reveals a significant loyalty crisis for retail banks, driven by underwhelming credit card experiences. Only 26% of customers report satisfaction with their cards, while a concerning 74% are either indifferent or outright dissatisfied, indicating a high risk of customer attrition.
This dissatisfaction is particularly prevalent among digital-native, urban clients aged 18-45, who are primarily motivated by exclusive experiences, rewards, and cashback offers, yet feel these expectations are not being met. Nearly half of prospective customers abandon the onboarding process due to poor experiences.
Despite the importance of personalised experiences, banks are struggling to differentiate their offerings, even with access to extensive data. The banking landscape is being disrupted by the rise of contactless and remote payment options, particularly account-to-account payments, which are projected to significantly impact card transaction volumes. While 88% of bank executives recognise the importance of expanding reward ecosystems, these programs are failing to translate into customer loyalty.
Banks’ marketing teams cite intense competition from new-age banks and other card providers, ineffective messaging, insufficient customer insights, and complicated applications as major challenges. To address these issues, 86% of executives plan to prioritise omnichannel experiences over the next year. Gareth Wilson, Global Banking Industry Leader at Capgemini, emphasises the need for a culture reset focused on customer centricity throughout the card journey, from awareness to onboarding and rewards.
He also highlights the critical role of contact centers, which, despite being a potential weakness, can be transformed into intelligent engagement hubs that enhance customer satisfaction. “At a time where convenience and personalisation dictate customer expectations, our research highlights the fragile state of cardholder satisfaction. Appealing to experience-driven urban consumers requires a culture reset that prioritises customer centricity at every stage of the card journey – from awareness to onboarding to rewards,” said Gareth Wilson, Global Banking Industry Leader at Capgemini. “Contact centers represent the front line of engagement, shaping brand perceptions, yet they remain the industry’s Achilles’ heel. Banks have an opportunity to transform contact centers into intelligent engagement-focused hubs that “wow” customers.”
