In today’s competitive financial landscape, where seamless digital experiences define customer expectations, even the most innovative tools and platforms can fall short without one essential element: trusted, unified identity data.
New research confirms what many financial services leaders already suspect—despite years of digital transformation, the industry is suffering from an identity crisis. The issue isn’t a lack of data. It’s fragmented, duplicate, and disconnected identity data that prevents institutions from delivering the secure, personalized experiences customers now demand.
And the stakes have never been higher.
The new rules of customer loyalty
Traditional loyalty is eroding fast. According to a 2024 Motley Fool Money survey, 76% of consumers say they’re likely to switch banks if they find one that better fits their needs, up from 52% in 2020. Disruptors like Chime and Apple Pay are redefining expectations, delivering frictionless, hyper-personalized experiences that build trust and drive retention.
Legacy institutions are under pressure—not just to keep up, but to leap ahead. That means strengthening the identity foundation beneath every interaction.
The research reveals the depth of the problem:
- 53% of financial services leaders say poor identity data directly limits revenue growth.
- 50% report customer defection due to misaligned or fragmented experiences.
- Only 8% feel fully confident in their ability to deliver a unified customer view.
The message is clear: without a trusted, 360-degree view of every person in the system, personalization is impossible, compliance is at risk, and digital transformation cannot succeed.
From fragmentation to frustration
Most financial institutions know that customers want personalized, secure experiences across every channel. In fact, 95% of leaders surveyed say this is a top priority for 2025. But the gap between ambition and execution is wide.
Only 12% believe they can provide truly personalized experiences at every touchpoint.
That’s because identity data remains locked in silos, spread across core banking platforms, CRM systems, mobile apps, call centers, and third-party sources. Without a single source of truth, organizations struggle to answer a fundamental question: Who is this customer, really?
The business impact is real and growing:
- 95% of leaders say fragmented identity data prevents delivery of tailored, secure services.
- 55% say it directly limits operational efficiency.
- 50% say it undermines trust and erodes customer satisfaction.
Why financial institutions need identity intelligence
Traditional identity solutions weren’t built for the complexity, speed, and personalization demands of today’s financial ecosystem. What’s needed is modern identity intelligence, technology that unifies, enriches, and governs identity data across systems and channels in real time.
Identity intelligence means:
- Accurate identity resolution across fragmented systems
- Real-time synchronization of identity data into every system that needs it
- Data enrichment with demographic, behavioral, and third-party insights
- Governed data that is secure, reliable, and ready for analytics, engagement, and AI
This isn’t just about resolving data fragmentation. It’s about enabling growth, trust, and resilience.
Enabling seamless, personalized engagement at scale
When identity is accurate and connected, financial institutions can finally activate the full potential of their digital, CRM, and data platforms. With the right foundation, institutions can:
- Create secure, frictionless onboarding and Know Your Customer (KYC) workflows
- Deliver hyper-personalized offers and content across channels
- Enable trusted customer support with complete, real-time identity visibility
- Power AI, analytics, and segmentation strategies with enriched, unified data
Nearly 40% of surveyed leaders say they’re planning to invest in modern MDM solutions to support these goals, with top priorities including real-time identity resolution, cross-system integration, and profile enrichment.
What is identity intelligence?
Identity intelligence goes beyond data accuracy. It delivers secure, enriched, and trusted identity profiles to every system and team, enabling the seamless, personalized, and compliant experiences that today’s customers expect.
The strategic path forward
The future of financial services belongs to institutions that know their customers—not just by account number, but by identity, behavior, and need. Modern identity intelligence makes it possible.
For financial organizations grappling with siloed data, stalled digital initiatives, or inconsistent customer experiences, the imperative is clear: address the identity gap at its core.
Download the full Financial Services Identity Report to explore the latest research, executive benchmarks, and strategic recommendations that will help you lead with trust and intelligence.
