Most people choose a bank, open an account, and stick with the same handful of financial products for years – sometimes even for life. A credit card, a savings plan, maybe a mortgage, and that’s it. 

Meanwhile, banks pour resources into new offerings, only to find that their existing customers aren’t paying attention. The problem isn’t a lack of great products; it’s inertia. 

Humans crave novelty. We get excited by new experiences, challenges, and unexpected rewards. When it comes to banking, that thrill is often missing. What if banks could tap into our psychological drive for novelty and make financial decisions feel exciting? By tapping into this craving for newness, banks can transform routine financial decisions into engaging experiences, encouraging customers to explore a broader range of services. 

The human need for novelty

Humans possess an inherent drive to seek new and stimulating experiences, a concept rooted in Optimal Stimulation Level (OSL) theory. 

This theory suggests that individuals have varying thresholds for stimulation, and those with higher OSLs are more inclined toward exploration and variety-seeking behaviors. This behavior extends to consumer choices, where novelty-seeking customers are more likely to explore new products and services. 

In the banking world, this means that customers aren’t necessarily disinterested in new financial products; they simply aren’t presented in a way that aligns with their appetite for discovery. The challenge for banks is to reframe financial decisions as engaging, personalized experiences that encourage exploration rather than passive consumption. 

Using AI for personalized experiences 

AI provides a powerful means of bridging the gap between novelty-seeking behavior and financial engagement. By leveraging tools like ecosystem.Ai’s Spend Personality Module, banks can analyze transactional data and spending patterns to create tailored experiences for customers. 

Instead of offering generic promotions, this Module enables financial institutions to anticipate individual needs to make financial interactions more engaging and personal.

The experience economy

As customers increasingly value memorable experiences over transactional exchanges, banks have an opportunity to create memorable interactions. 

This shift, known as the experience economy, rewards businesses that deliver personalized, engaging experiences rather than just services. 

Strategies to reinvigorate customer engagement 

  • Personalized product bundling: Tailor product offerings to individual life stages and financial behaviors, such as pairing a mortgage with a home improvement loan or linking investment services to retirement planning. 
  • Gamification of financial goals: Introduce challenges, progress tracking, and rewards for achieving savings milestones, making financial management interactive and rewarding. 
  • Loyalty programs: Move beyond traditional reward systems by offering perks like access to exclusive investment opportunities, personalized financial planning sessions, or partnerships with lifestyle brands. 

Static customer relationships can be converted into dynamic engagement once banks recognize and address the human need for novelty. Through personalized experiences, innovative offerings, and a focus on creating memorable interactions, financial institutions can encourage customers to explore a broader array of products and services, promoting loyalty and driving growth.