Cardholders are demanding a better digital experience from their banks.

Retail banks are struggling to meet the expectations of digital-native customers aged 18-45, with 74% of cardholders feeling dissatisfied or indifferent about their credit card experience, according to Capgemini Research Institute’s World Retail Banking Report 2025, published today.

Despite 73% of customers valuing exclusive experiences, rewards and cashback offers, banks have yet to differentiate their offerings, putting customer retention at risk, according to the report, which includes data from 200 senior retail banking executives, 700 marketing team members from banks and 8,000 retail consumers aged 18-45.

Key findings from the report include:

• Onboarding friction: 47% of customers abandon credit card applications, with only 3% of banks offering a seamless process;
• Weak customer engagement: 24% of customers are satisfied with contact center support; and
• Missed personalization opportunities: 74% of cardholders may switch due to lack of tailored experiences.

Retail banks can boost engagement by modernizing contact centers, with 86% planning to prioritize omnichannel experiences, according to report.

With only 29% of data collection automated, 41% of banking executives also plan to integrate AI into the onboarding process to improve efficiency, according to the report.