Banks shift focus to customer experience

Synchrony, a major U.S. consumer financial services company with over $120 billion in assets, spent years gathering customer data. Every transaction and application contributed to detailed profiles. Yet when customers visited its digital channels, that information seldom influenced what they encountered.

The issue wasn’t insufficient data. The company struggled to connect insights to the exact moment a customer needed something specific—like healthcare financing—instead of a generic credit offer. Synchrony understood its customers but often missed what they wanted in real time.

In 2020, Synchrony began working with Dynamic Yield, a personalization platform previously owned by McDonald’s. The tool allowed banks and merchants to use customer data and real-time behavior to customize digital experiences. Mastercard purchased Dynamic Yield in 2022, viewing it as a way to expand beyond transaction processing and better understand customer intent before, during, and after payments.

AI as a tool, not a solution

After six years of collaboration, Synchrony’s focus has shifted beyond the technology itself. The challenge now lies in scaling that understanding. AI can analyze vast data sets, but it can’t replace human judgment about context. A customer who suddenly increases credit card spending might be planning a major purchase or facing financial distress. Recognizing the difference is essential.

The banking industry faces a similar challenge. Decades of data collection have set the stage for the next step: using that information to anticipate needs rather than just respond to them. Fewer generic offers and more timely, relevant options will define success.

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Mastercard’s purchase of Dynamic Yield reflects a broader trend in payments. The company sought more than a personalization engine—it wanted a way for financial institutions to look beyond transactions. The goal isn’t just faster payments but more meaningful ones.

For Synchrony, the shift has been gradual. Customers now see options tailored to their behavior, not just their credit score. The bank isn’t guessing; it uses data to make informed assumptions about what comes next.

Missteps remain a risk. Personalization can feel intrusive if it’s too precise. A customer who just lost their job won’t appreciate loan offers, no matter how well-targeted. The boundary between helpful and invasive is narrow, and banks are still learning where it lies.

The path forward is clear. Banking’s future isn’t about selling more products but about being useful when it counts. That requires a mindset shift—one that prioritizes the customer over the balance sheet.

Before chasing advanced tools, institutions must ensure their data foundations are solid.