(P1) Experience Management (XM) in the banking industry - Future of Applying Machine Learning and Deep Learning | XM Community
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Hi guys, I want to share my ideals about Experience Management (XM) in the banking industry - Future of Applying Machine Learning and Deep Learning. 

My English is not bad, but it also isn’t good, so i use my mother language then translation tools, so if you feel unclearly about some part of this, feel free to ask. 

I want to get as much as your comments, so it is great to discuss. 

The first part is about Overview of Experience Management (XM) in the banking industry and Analyze models XM in the banking industry

1. Overview of Experience Management (XM) in the banking industry

Definition and role: Experience Management (XM) is the process of monitoring, analyzing and improving all business activities to better serve customers, employees and brands. In the banking sector, XM covers management customer experience (CX), user experience (UX), employee experience (EX) and brand experience (BX) overall. XM helps banks go beyond pure customer service to create positive, lasting experiences that retain customers and improve employee performance. This is especially important in the modern banking landscape, where quality of experience becomes a core competitive advantage.

Factors affecting XM in banking:

  • Customer expectations are increasingly high: Today's customers demand a banking experience Smooth and convenient like technology applications. They wish personalization and flexible digital services; If their needs are not met, they are willing to switch to another supplier.
  • Digital transformation and technology: The explosion of digital banking (mobile banking, internet banking) changes the way customers interact with banks. Reality, 88% of users prefer online banking (59% via mobile app) rather than going to the counter forcing banks to optimize the experience on digital channels.
  • Competition from fintechs and competitors: The emergence of agile fintechs with good experience puts pressure on traditional banks to upgrade XM. Otherwise, customers may leave for new financial services.
  • Regulations and confidentiality: Banking is a field that requires high reliability. The security incidents or lack of transparency can destroy experiential trust. On the contrary, regulatory compliance and information transparency will strengthen customer trust.

Benefits when applying XM to banking:

  • Increase customer satisfaction and loyalty: Positive experiences create a knock-on effect that helps promote loyalty. More than 82% of surveyed customers said that CX is the leading factor determining loyalty to them with the bank. Satisfied customers tend to stick around for a long time, recommend the service to others, and use additional products (credit cards, loans, investments).  
  • Increase revenue and competitive advantage: Invest in the experience that delivers high yield. Research shows that by simultaneously improving customer experience and brand experience, businesses can achieve double revenue growth. 3.5 times along with higher customer retention. Outstanding experience becomes a differentiator that helps banks attract and retain market share in a fiercely competitive environment.
  • Improve operational efficiency: XM forces banks to optimize internal processes and services. Customers encounter few obstacles (less waiting time, simple procedures) which will reduce the load on the support department. Employees with a good experience work more efficiently, reducing operating costs due to errors or cumbersome processes. 

Thus, XM plays a key role in Customer-centric transformation at the bank. Good comprehensive experience management will help banks meet the expectations of the digital customer generation, engage employees and build a reputable brand, thereby achieving sustainable growth.

2. Analyze models XM in the banking industry

XM covers many different aspects of the experience. Here is the analysis of each model – CX, UX, EX, BX – about the features, benefits, limitations and relevance in the banking context, before comparing to find a priority focus.

a. Customer Experience (CX) – Customer experience in banking

Characteristic: CX is synthesizing all customer experiences throughout the journey. Use banking services, from interactions on digital channels (applications, websites) to transactions at counters, call centers or brand touch points. CX quality is assessed by the bank's Meet customer needs easily, effectively and with positive emotions. In other words, CX measures a bank's success in delivering an experience Convenience (ease), effectiveness (effectiveness) and creating satisfaction (emotion) for customers.

Benefit: In banking, CX is considered Survival factors are directly tied to satisfaction and loyalty. Good CX drives loyalty, customer growth. For example, creating positive customer experiences “domino effect”: Investing in improving CX will increase loyalty, reduce churn, thereby increasing revenue. Many surveys confirm the importance of CX: CX is considered The number one driver of loyalty in banking according to 82% of survey participants. An excellent CX also makes customers willing to use more products and recommend services to friends, thereby expanding market share.

Limit: CX management is demanding synchronized efforts throughout the organization. Customer experience covers many touch points difficult to measure and control consistently. For example, a good app experience can be ruined by slow counter service, or vice versa. Job Break down data silos between channels and departments in the bank is a big challenge to have a unified view of CX. Additionally, measuring emotional aspects in CX is not simple. However, these limitations are gradually being overcome thanks to data analysis technology and commitment from management to be customer-centric.

Evaluate: CX is an experience model most comprehensive and focused for banks because Directly related to customers - the object that brings revenue. In the context of increasingly commoditized (homogeneous) banking products, CX becomes a competitive weapon to make a difference. Many banks have built in-depth customer experience management (CEM) programs to continuously improve the customer journey and measure satisfaction index (CSAT) and net promoter score (NPS). Overall, CX plays a "leading" role in XM, because improvements in UX, EX or BX ultimately aim to enhance the customer experience.

b. User Experience (UX) – User experience in banking

Characteristic: UX focuses on *user experience when interacting with specific product or channel banking, mainly digital platforms such as mobile banking applications, Internet banking, ATMs, websites. UX cares about friendliness, ease of use, intuitive interface and usefulness of product. In digital banking, good UX means customers easily perform tasks (transfer, balance inquiry, account opening) quickly, conveniently and with no barriers. For example, Simple interface, clear instructions, secure but not cumbersome are factors UX It is important for customers to feel comfortable and secure when transacting online.

Benefit: UX is a key element of CX on digital channels. One Good UX can dramatically increase satisfaction, trust and loyalty of customers with the bank. On the contrary, poor UX (difficult to use, outdated applications) will cause downgrading the overall experience and causing customers to leave. Research shows 46% of consumers under 55 years old are willing to switch banks for better digital applications. Therefore, improving UX is an opportunity to retain customers in the digital era. Other benefits of good UX include increased Frequency of using digital services, reduce counter service costs, and even enhance sales (because customers can easily access products, for example opening cards, borrowing online). A typical example: a Middle Eastern bank, after improving UX (based on user journey surveys and usability testing), increased its app rating on Google Play from 2.8 to 4.7 stars – a demonstration that good UX directly enhances satisfaction.

Limit: UX is often focused on interface aspects and specific features, so if Only focusing on UX but forgetting other aspects can lead to a disjointed experience. For example, an app has a beautiful design (good UX) but if the fee policy, interest rate is not appropriate or the support staff is poor, customers will still be dissatisfied. Besides, UX needs to be continuously updated according to user behavior and new technologies, requiring regular investment by the bank (user research, interface testing). The other challenge is the balance between simplicity and security: ensures high security but does not frustrate users with overly complicated processes.

Evaluate: UX is an important component of CX, especially in digital banking today. With the trend of customers shifting to digital channels, UX almost determines how most customers feel about the bank. However, UX is mainly focused on the digital environment, therefore narrower range versus CX (including branch experience, people service). UX needs to be integrated into the overall CX strategy: any UX improvement should aim to ultimately enhance CX. In comparison, CX is more comprehensive than UX – but excellent UX is a necessary condition for excellent CX on digital channels.

c. Employee Experience (EX) – Employee experience in the bank

Characteristic: EX is the experience of an employee working for the bank, including the work environment, organizational culture, compensation, work tools and daily interactions at work. In the banking industry, EX is reflected in the level of engagement and satisfaction of employees with the company, from counter tellers, call center staff to back-office specialists. Important factors in EX include: development training, Work support technology (for example, whether the core banking system or internal CRM system is easy to use or not), corporate culture (openness, creativity or bureaucracy, pressure), and listening from leadership. Simply put, EX is how the bank treats its employees, and how employees perceive their work.

Benefit: In spite of EX being the internal aspect, it does have an indirect but strong impact on CX. Employees with good experiences (satisfied, engaged) will have Motivation to serve customers better, providing a better customer experience. In fact, banks often focus on building a positive employee experience, attract and retain better talent, and provide superior customer service. There is a saying “Happy employees will create happy customers”, especially true in service industries like banking. Specific benefits of good EX include: reducing turnover rates (stabilizing personnel, reducing new recruitment costs), increasing labor productivity, promoting innovation initiatives (engaged employees will proactively suggest service improvements), and improving employer brand image of the bank. Much case study shows that the bank is on the list of "Best Places to Work" and also leads in customer satisfaction. For example, Origin Bank (USA) values ​​culture and regularly anonymously surveys employees quarterly to improve the working environment; As a result, they are among the “best banks to work for” and have highly rated customer service.

Limit: Unlike CX or UX, which can be quickly improved through technology, EX has a lot to do with human and cultural factors, therefore EX changes are often slow and difficult to measure. Improving EX requires commitment from the top leadership and time to build a positive culture. Additionally, EX benefits are often indirect, which is sometimes difficult to clearly quantify (EX ROI is not immediately visible like CX). In a high-pressure banking environment (due to business targets and compliance monitoring), employees are easily stressed; Balancing performance and a positive experience is no small challenge. Another limitation is that if the bank only focuses on external relations (CX) and does not pay attention to internal affairs (EX), in the long term the service will be less sustainable because employees are no longer motivated.

Evaluate: EX though less mentioned than CX but is increasingly being recognized as strategic factors in modern banking. A good employee experience is the foundation for executing excellent customer experience. Advanced banks have already begun “mapping” employee journeys similar to how they plot the customer journey, to find bottlenecks and improve EX. Comparison with other models: EX internally oriented, does not generate direct revenue But Direct support for CX (Good service staff means satisfied customers). Therefore, EX is a complementary model, inseparable if CX is to be successful. In preference selection, many experts say “Customers cannot be happy if employees are dissatisfied”, so improving EX is an indirect investment in CX.

d. Brand Experience (BX) – Brand experience in banking

Characteristic: BX is customer (or public) perception and impression of the bank brand at every contact point, from advertising, logos, media messages to the actual experience of using the service. Brand experience includes elements such as consistent brand identity, brand values ​​and stories, level of reputation and trust that the bank brand evokes. In the banking industry, BX shows what customers think when mentioning the bank's name: Is it trustworthy? Modern or traditional? Close or distant? Every interaction (watching an advertising TVC, seeing a bank's social media post, entering a transaction room with a consistent design) contributes to shaping BX. A core part of the banking BX is trust and transparency – Because banking is directly related to money, it feels Peace of mind, trust in the brand is the leading factor in brand experience.

Benefit: Strong and active BX will Drive brand loyalty and value in the long term. Customers with a good brand experience (like always feeling that the bank is transparent, cares about the community, and has values ​​that match them) will stick around and tend to ignore minor service errors. A trusted banking brand also attracts new customers through word of mouth and market reputation. Customer trust is BX's valuable asset: a 2024 study shows 61% of consumers consider “trusted information” the most important aspect of their banking experience – even more than speed or convenience. This emphasizes that being transparent and keep your brand promise is non-negotiable in BX. Another benefit of good BX is to increase the effectiveness of marketing efforts – with the same campaign, reputable brands will be received more positively. Special, BX and CX have a strong mutual relationship: when the brand experience (image, message) is consistent with the customer's actual experience, the effect will resonate. Research by Forrester (2025) shows if Improve BX and CX simultaneously, businesses will achieve Revenue growth is 3.5 times higher, with significantly higher levels of customer retention and loyalty. Banks, with their reliable service characteristics, will benefit even more when they are successfully built. The brand is associated with excellent customer experience (for example, banks like DBS, Capital One are famous for having both good digital technology and a friendly, innovative brand).

Limit: BX is a sometimes difficult concept to measure quantitatively. It is not easy to separate the impact of BX on business indicators in the short term, because it has a general and long-term feeling. A brand campaign can increase awareness, but whether it will immediately open new accounts is difficult to determine. Besides, BX depends heavily on internal synchronization: If the brand promises “dedicated service” but customers encounter unprofessional staff, BX will be harmed. The disconnect between brand promise and CX reality is a big challenge. In addition, the digital environment does increase risks for BX – just one negative feedback spread online can affect a brand's reputation. BX governance requires banks to Listen to multi-channel customers and quick response to maintain a consistent image.

Evaluate: BX in banking plays the role of: “soft assets” create a difference in emotions and trust in customers. Compared to CX, BX is qualitative long-term strategy more: CX focused Instant experience, and BX is cumulative general impression. However, BX and CX are closely linked – good branding creates good expectations (attracts customers to try the service), and good customer experience strengthens the brand. In choosing the right model, BX supportive, because strong BX itself is often the result of good CX and reputation management. Banks cannot only do branding communications and forget about improving service quality. In other words, Successful BX must be based on an excellent CX foundation. Therefore, BX is important to create initial trust and emotional attachment, but when considering priorities, banks often focus on improving CX (and EX, UX) first; when the internal strength of the service is good Positive brand experiences will come naturally and sustainably.

e. Compare and make preliminary choices between CX, UX, EX, BX models

Each of the above XM models focuses on a different audience and aspect of experience (CX: customers, UX: product users, EX: employees, BX: brand). They do not exclude but complement each other in the overall banking experience picture:

  • Scope: CX has the widest scope, covering the entire customer journey; UX is narrower, focusing on specific product/channel experiences; EX targets internal employees; BX looks outward in terms of brand image.
  • Relationship: Good UX is the foundation for good CX on digital channels; Good EX facilitates good CX through service quality; Positive customer CX will strengthen BX (more reputable brand), and strong BX will attract new customers into the CX cycle. Can imagine CX is the focus, UX and EX are two pillars of support from below, while BX is the result at a higher level.
  • Impact on banking goals: CX directly impacts satisfaction, loyalty and revenue from existing customers; UX impacts Digital channel adoption and usage rates, helping to reduce service costs and expand interactions; EX affects internal performance and culture, indirectly affects service quality; BX impacts market awareness and trust, influencing new customer growth and brand value.
  • Implementation feasibility: CX and UX programs are often based on customer data and market feedback - which can be measured relatively clearly (through CSAT, NPS, product usage metrics). EX and BX are more difficult to measure quantitatively (requires employee perception surveys, measuring brand equity). However, All four arrays should be deployed synchronously to create resonance: bank example HSBC famous for its slogan "The World's Local Bank" (BX) has trained multilingual, culturally knowledgeable staff (EX) and designed locally flexible products (UX) to deliver committed customer experiences (CX).

All in all, in the banking industry CX is often considered the most strategic focus. The reason is Every UX, EX or BX improvement is ultimately reflected in the customer experience. CX is also directly tied to short-term business metrics (satisfaction, loyalty, revenue). This does not diminish the role of UX, EX, BX – on the contrary, it suggests that Banks need to approach XM in an integrated way, take CX centric, and simultaneously Combine UX, EX, and BX improvements in harmony to support CX. The following section will propose more clearly this optimal model and integration method.

 

 

​@EdenHaha This is a superbly detailed overview and I think could be applied across industries--well done! I have two questions in the context of how your developing your experience approach.

Firstly, how are you developing user journeys that detail what different customers--in the many channels and ways in which they experience the bank--come to you, and what their pain points are? I would imagine mapping that level of detail is incredibly challenging.

Secondly (and this is likely related to the first), how are you defining and possibly segmenting in-person interactions with virtual ones? I think this is a challenge for a lot of us, as ​@JamesScutt raised in one of the other threads about XM Institute research, that on the one hand people crave personal interaction at the same time that so many experiences occur virtually. 

I hope this helps!

Best,

Adam

Hi ​@AdamK12

Thanks for your comment, I am very happy to see it. Let me answer your question: 

Question 1: “Firstly, how are you developing user journeys that detail what different customers—in the many channels and ways in which they experience the bank—come to you, and what their pain points are? I would imagine mapping that level of detail is incredibly challenging.”

Background:

In my workflow, building a Customer Journey Map (CJM) typically starts with qualitative research (in-person interviews, desk research), followed by qualitative analysis methods (coding, thematic analysis) to identify key customer pain points. This is combined with Qualtrics best practices and our organization’s CJM methodology to create a draft CJM (assuming personas are already established). Subsequently, quantitative research methods (surveys, etc.) and quantitative analysis are used to validate the identified pain points and gather additional data for analysis.

Answer:
 

1.1. “How are you developing user journeys that detail what different customers—in the many channels and ways in which they experience the bank—come to you?”

 

To address your question, developing Customer Journeys (CJ) for different customers tackles the challenge of hyper-personalization, not only in banking but across various industries globally. As a data professional, my perspective is that achieving this requires integrating not just two but three types of data: X Data + O Data + B Data (Experience + Operational + Behavioral)—which is my objective in this field. Collecting these data types can be implemented through the CJM. For example, when a customer visits a website, their interactions are captured (B Data). After they provide information for a Relationship Manager to contact them, O Data is collected from the business. X Data can be gathered through Listening Posts with perception-based surveys, while B Data is derived from customer interactions across channels (web, app, etc.). In theory, this approach is entirely feasible.

 

1.2. “What are their pain points?”

 

From my perspective, the pain points can be divided into two main categories:

  • Resource-related issues: Collecting these three types of data requires technological capabilities (collection, storage, and utilization) to be executed effectively.
  • Customer-related issues: Customers may feel monitored and uncomfortable when using the application.

Question 2: “How are you defining and possibly segmenting in-person interactions with virtual ones?”

In banking Experience Management (XM), in-person interactions are defined as face-to-face engagements in physical spaces, while virtual interactions occur through digital or telephonic means. Segmenting them by medium (physical vs. digital) and human involvement (high vs. low) provides a clear framework to manage experiences effectively. By offering a hybrid model—where customers can choose or combine channels—and personalizing virtual options, banks can satisfy the craving for personal interaction while leveraging the convenience of virtual services. This balance is key to enhancing Customer Experience (CX), User Experience (UX), Employee Experience (EX), and Brand Experience (BX), driving loyalty and growth in a competitive, digital-first landscape.

 

This is my response to your two questions, and I eagerly look forward to your further feedback.

Kind regards, 

Eden 

 

Thanks, ​@EdenHaha -- I really appreciate how you’ve framed this. Two elements really stand out:

  • Your approach to journey mapping is extremely useful -- I like the methodology of starting with a qualitative approach and validating it through empirical data.
  • Even more so, I’m looking forward to applying your in person/virtual segmentation approach. I would expect that most companies/organizations can fit their product ranges into a 2x2 matrix (channel vs. level of human involvement). As a library, most of our patrons interact with us virtually, but that doesn’t necessarily mean that there’s not a high level of human involvement as far as creating and managing the content. This approach will also help us think differently about how we’re organized, which traditionally has been around how the content is created, not how patrons experience it. 

Thanks again for the great insight!

 

I'm glad my idea could help you somewhat. If you'd like to discuss further, feel free to reach out. I'd be happy to connect with someone about topics like this.

 

Kind regards, 

Eden 

Thanks very much!

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