‘Phygital’ strategies and tools help consumer banks blend advanced technology and AI with accessibility and financial inclusion.
A wave of innovation is reshaping consumer banking, moving a business estimated at some $70 trillion worldwide beyond simple online transactions to create integrated, customer-centric financial ecosystems. A primary feature of this transformation is the shift to super apps and beyond-banking models, which aggregate a comprehensive suite of financial and nonfinancial services—from credit and investments to communication and e-commerce—on a single, secure digital platform. Often, this shift is enabled by leveraging open-banking principles and APIs to foster a broader, more interconnected digital ecosystem.
Accessibility and financial inclusion remain central, however, as banks deploy “phygital” strategies that blend advanced technology with human touchpoints to ensure seamless access even in geographic areas with limited physical or digital infrastructure. Tools include mobile virtual-network operators (MVNOs) that do not own their own wireless network infrastructure and the USSD (unstructured supplementary service data) communication protocol that allows mobile phones to interact directly with a service provider’s systems.
Strategic application of machine learning and AI, meanwhile, is driving internal efficiencies in risk management and process automation and enhancing the customer experience through personalized product offerings and intelligent, real-time, decision-making for services like loan approvals. Convenience and security remain top of mind as banks adopt payment innovations like PayShap, QR, and tap-to-pay; sophisticated fraud-monitoring systems; and unique features designed to build trust and simplify complex daily financial activities.
Taken together, these innovations amount to a sweeping cultural change, as well as process change for banks whose customer base runs the gamut from beginner to highly sophisticated. This year’s regional winners exemplify the effort needed to get it right.
Africa
First National Bank
South Africa’s First National Bank (FNB) offers FNB Connect, an integrated digital financial platform including banking, credit, insurance, investments, and communication within a secure ecosystem. FNB serves 7.7 million digital customers who log into the app 156 million times monthly. As South Africa’s highest-rated banking app, it does duty as a personal banker, financial coach, and e-commerce hub, offering consumers an omnichannel experience driven by intuitive design, automation, and personalization.
“FNB Connect drives our ‘beyond banking’ vision by integrating connectivity, devices, and digital services into one ecosystem,” says FNB Connect CEO Sashin Sookroo. “In rural and periurban areas where physical banking infrastructure is limited, our MVNO offering ensures customers remain connected to digital platforms, enabling secure transactions and access to financial tools. Together, these pillars bridge the gap between connectivity and financial inclusion, accelerating digital adoption where traditional channels are out of reach.”
FNB is working to reduce communication costs through zero-rated banking channels, rewards, and free WhatsApp; and to make technology accessible via curated products such as solar energy and water tanks with eBucks Rewards. The bank’s service-provider portfolio allows customers to top up airtime/electricity or redeem vouchers at over 400,000 locations, eliminating the need to travel to urban centers. FNB’s CashPlus and AgencyPlus initiatives blend technology with human touchpoints to deliver a phygital experience, notes Fazlen Khan, channel management head for Broader Africa, ensuring financial services are inclusive and accessible for all communities.
Asia-Pacific
Taiwan Business Bank (TBB)
Although best known as Taiwan’s only dedicated SME bank, TBB has extended the same digital strengths to its consumer channels, creating a unified experience across retail and business customers. “Through model-based analysis of financial conditions and market dynamics,” says Lawrence Tsai, TBB’s manager of Digital Banking, “TBB predicts future funding needs, offering precise financial solutions to enhance business planning and operational efficiency.” Its micro-enterprise e-loan platform is specifically designed for SME financing, aligning the bank’s application processes, review logic, and product design with the distinct needs of small and midsized enterprises.
TBB offers an industry-first, comprehensive one-stop online experience for business applications and contract execution. Thanks to extensive use of optical character recognition, MyData integration, robotic process automation (RPA), and real-time decision-making systems, the bank reports it has reduced the time required for application submission from 15 minutes to two, and review time from two days to 40 minutes. Business owners can scan necessary documents using a mobile device or upload them via computer; the system automatically retrieves data through the National Development Council’s MyData database, enabling application completion in just 10 minutes.
Central & Eastern Europe
Bank of Georgia
Bank of Georgia’s digital efforts have cut costs by more than 30% and achieved 90%-plus online service access, it reports, rewarding the bank with consistent industry recognition. Its super app offers investment services as well as “Buy Now, Pay Later.”
Bank of Georgia leverages open banking APIs to create a broader, highly interconnected digital ecosystem and prioritize a customer-centric experience with high digital adoption, seamless processes including remote account opening and instant digital cards, and enhanced support via chatbots and 24/7 in-app assistance. The bank is integrating machine learning and AI for risk management and process improvement and to create highly personalized product offerings. These include AI-driven SME loan approvals, cutting processing time for a significant share of clients.
Latin America
Banco Banamex
Banamex offers intelligent and personalized payment via its digital ecosystem. Customers can conveniently pay bills, transfer money, and make purchases with digital cards using the Banamex app and online banking while integration with Apple Pay, Google Pay, and Samsung Pay allows for fast, contactless payments tailored to customer lifestyles. In April, the bank launched Banamex Switch, a 100% digital account aimed at Gen Z, through which users can access digital account opening; digital credit cards; exclusive digital promotions, personalization, security, and control; and 24/7 assistance.
Middle East
Commerical Bank of Qatar
Commercial Bank of Qatar’s digital platform offers over 150 services including geofencing for real-time card offers and automatic branch appointment token issuance (within 10 meters), eliminating manual kiosk interaction. A 60-second remittance service provides fast transfers to over 40 countries. IBM Safer Payments, an intelligent fraud monitoring system, analyzes transactions across digital channels, ensuring scam incidents are rare, while CBsafe ID protects against fraudulent calls via call verification, enhancing trust.
North America
Bank of America
Digital services are central to client relationships at Bank of America (BofA), driving growth and personalized experiences through industry-leading digital capabilities integrated with its financial and call centers. Last year, BofA clients’ digital interactions rose 12% to hit a record 26 billion. The launch of the bank’s unified mobile app last year enables clients to access all their banking, investment, and retirement accounts via any Merrill, Private Bank, Benefits Online, or BofA app. Erica, BofA’s comprehensive virtual financial assistant, manages clients’ full financial relationships, including initiation of applications in physical centers and completing them digitally. Lately, Erica has also been of use to clients affected by Hurricanes Helene and Milton and the Los Angeles wildfires earlier this year, making information available about BofA’s Client Assistance Program.
“We prioritize our multibillion-dollar technology investment by focusing on scalable innovation that delivers real value to our clients and employees,” says Tom Ellis, head of Consumer Technology. “From AI-driven tools like Erica to advanced data analytics and cybersecurity, our goal is to ensure every digital interaction is smarter, more personalized, and more efficient—year after year.”
Western Europe
Eurobank
Eurobank enhances 24/7 customer support through multiple digital channels, including interactive assistance via personal and bulk messages; private online chat through Click2Chat; and a video teller service for scheduling meetings, uploading documents, and applying for products. The bank’s digital channels also provide user-friendly investment tools, enabling real-time stock transactions, mutual fund management, and a global investment portfolio view, plus personalized product suggestions and credit offerings.
For daily financial activities, Eurobank integrates customizable payments, such as recurring and bulk options, with account aggregation for a unified view of the customer’s accounts. Features like real-time alerts, payee verification, fee calculators, personalized transaction suggestions, searchable history, repeat payments, and contactless options simplify transactions and link to a digital rewards program.