Why the next competitive advantage in financial services may come from emotional intelligence, not just digital efficiency
Financial services is a sector balancing rapid digital change with very human expectations. For years, the industry has focused heavily on digital transformation. Faster journeys, smarter tools, omni-channel, and most recently AI-powered support have become the benchmark for progress. In many ways, consumers have embraced that evolution.
Our latest research at The Harris Poll UK shows that sure enough digital financial services are now firmly embedded into everyday life. Around 6 in 10 consumers now use mobile wallets regularly, with 30% saying they have become their default payment method. Quick payments, easy day-to-day banking and convenience are now among the strongest-performing aspects of the category, particularly amongst younger consumers who increasingly see digital-first money management as the norm rather than the exception.
At the same time, there is growing pressure beneath the surface. Consumers value the convenience innovation brings, but they do not want progress to come at the expense of confidence, clarity, trust or human support. The challenge for financial services is no longer simply about digitising journeys. It is about understanding the emotional reality of managing money in an increasingly demanding world.
Consumers are coping, but not necessarily confident
One theme within the research is that many are coping, rather than thriving, financially. While 64% say they feel mostly or completely in control of their financial lives, only 18% describe themselves as financially confident and optimistic. Instead, the dominant mood is one of caution, with 45% describing their financial situation as “stable but cautious”. Consumers are managing day to day, but many continue to feel emotionally stretched by rising costs, future uncertainty and the complexity of financial decision-making.
Financial stress is also becoming much more embedded into everyday life. Saving and planning for the future now ranks as the single biggest source of financial stress for consumers at 37%, followed closely by protecting themselves from fraud and scams at 32%. Fraud concerns become even more pronounced amongst older audiences, reflecting a wider environment where people increasingly feel the need to remain constantly vigilant.
There is also a growing sense that financial services brands are not fully recognising the realities many customers are facing. More than 4 in 10 consumers say financial services companies do not understand the real financial pressures they face today, rising to almost half amongst those aged over 65. That points towards a growing empathy gap between financial institutions and the people they serve.
Digital works well until the stakes feel higher
The research shows consumers are very comfortable with digital financial services during low-stakes, transactional moments. Almost half say digital financial services work best for easy day-to-day banking, while 40% highlight quick payments and 33% value speed and convenience.
The problems emerge when situations become more emotional, uncertain or complex. Consumers consistently told us that digital financial services still fall short when they need reassurance, clarity or support navigating difficult situations. Lack of human support is now the single biggest weakness identified within digital financial services, cited by 39% of consumers, alongside concerns around security, problem resolution and impersonal experiences.
But the issue is not as simple as “digital versus human”. Whilst on the surface, consumers across generations appear to be making the request for greater access to human support within financial services, underneath that headline sits two very different emotional needs.
Older consumers want reassurance and certainty
For older consumers, human interaction is often about reassurance, confidence and reducing complexity. Nearly 65% of consumers aged over 65 say being able to speak to a real person when needed is one of the most important aspects of financial services customer support. They want to know support will be there when something goes wrong, that they can access a real person quickly, and that they will not be left navigating difficult situations alone. In many ways, they are looking for the confidence and certainty traditional customer service channels once represented.
Younger consumers want recognition and accountability
Younger consumers, however, often appear to be looking for something slightly different from human support. Their expectation is less about access alone and more about feeling recognised as an individual within increasingly automated experiences.
They are more likely to become frustrated when interactions feel generic, scripted or emotionally disconnected, particularly when their situation does not feel properly understood. Beyond service efficiency, which many actively welcome from digital tools and AI, they are still looking for experiences that feel responsive, accountable and emotionally aware.
Despite those differences, both groups are ultimately looking for experiences that feel supportive and trustworthy. The important point is that this is not simply a generational transition away from human support. Expectations around what good support looks and feels like are evolving.
The organisations that win in the future are unlikely to be the ones that simply automate the fastest. They will be the ones that best understand when consumers need efficiency, when they need reassurance, and when they need to feel genuinely understood as individuals.
Will Emotional Intelligence come from humans or AI
Financial services are entering a new phase of consumer expectation.
Efficiency alone doesn't win. It is becoming less differentiating in a market where most providers now offer competent digital functionality. Emotional intelligence will win because customers want to feel supported and understood, with displays of empathy particularly important during moments of uncertainty or stress.
The interesting long-term question, and ultimately the challenge for the sector, is whether satisfactory emotional intelligence comes from humans, AI or a carefully orchestrated combination of both.
The next phase of financial services innovation is unlikely to be defined by technology alone. As expectations around trust, reassurance and support continue to evolve, understanding the emotional realities shaping customer experience may become just as important as improving efficiency. At The Harris Poll UK, we help organisations uncover the behavioural and emotional shifts shaping decision-making, trust and customer experience across rapidly evolving markets.