The financial industry will reach a turning point in 2025. Success will no longer be determined by the most aggressive campaign or the loudest product, but by the ability to understand customers and guide them on an intelligent, behaviour-based journey. Those banks that internalise this principle will build deeper relationships, provide more relevant advice and ultimately be chosen more often. 

Behavioral Banking: From Product Sales to Partnership-Driven Customer Engagement 

Behavioural banking combines insights from behavioural economics with modern technology. It reveals how customers actually behave, the routines that shape them and the needs that arise in their everyday lives. These patterns give rise to a banking experience that adapts to life situations, financial circumstances, and personal objectives. In this way, institutions promote the financial health of their customers and differentiate themselves in a market where digital services are becoming increasingly interchangeable. 

The most powerful levers are already becoming apparent. Artificial intelligence and automation enable us to anticipate needs in real time and provide suitable recommendations or savings targets directly. The ‘mobile first’ approach is becoming the norm: apps are evolving into control centres that structure budgets, provide insights and proactively highlight opportunities or risks. Traditional product advice is evolving into partnership-based coaching that is approachable, relevant and geared towards everyday life. 

Behavioural banking adds value in four areas: playful incentive systems and transparent rewards increase motivation; proactive tips combine information with immediate opportunities for action; dynamic savings plans automatically adapt to changes in income or life circumstances; and short, precise micro-learning impulses deliver knowledge exactly when it is needed. 

The important point is that these approaches can be measured. Banks can measure success using traditional KPIs such as cross-selling, upselling, net promoter score and cost-to-serve, as well as actual customer progress, such as increased savings, reduced debt, higher usage and stronger engagement. This makes the impact controllable for both customers and the institution. 

Discovery Bank demonstrates: The future of banking is behaviour-based. 

With ‘Vitality Money’, Discovery Bank focuses on behavioural banking, rewarding customers for their healthy financial habits with a points system and personalised banking terms. The better your financial behaviour, the higher your level and the greater your rewards, such as discounts or fitness vouchers. The system also considers non-financial factors such as fitness goals and consumer behaviour, promoting holistic development. 

This model strengthens customer loyalty and enables the bank to achieve its own goals by motivating customers to reduce debt or increase deposits. 

Financial well-being and Banking 

Behavioural banking brings together what belongs together: financial well-being and banking. Banks that actively care for their customers’ well-being benefit from this. Customers who feel well looked after by their bank are more financially stable and loyal. 

Rather than resting on their traditional business model, banks should break new ground. Those who opt for behavioural banking and invest in smart, modern technologies will have more satisfied customers and higher profits. They also have the opportunity to set the standard for financial health. 

SAP Fioneer is putting these principles into practice with ‘behavioural banking’, developed in collaboration with alseda Consulting. Data-driven services are linked to incentive-based mechanisms, enabling customers to become more financially stable and use more products. They are also more likely to recommend their bank, both in direct contact and in their personal environment — up to five times more often in direct contact, and three times more often in their personal environment. 

SAP Fioneer and alseda Consulting support Discovery Bank with the SAP Payment Centralisation solution — the central platform for payment transactions. This ensures that all transactions from the ‘Vitality’ programme are processed smoothly and reliably. 

Conclusion 

When psychology meets technology, stronger, longer-lasting relationships are created that provide smarter advice and create more value for everyone involved. Behavioural banking is not just an innovation in service, but a paradigm shift in the way banks ensure relevance, trust and growth. 

Since its foundation in 2016, Discovery Bank has relied on alseda Consulting’s expertise. alseda initially supported the bank in implementing SAP Payment Centralisation, and the team is now also responsible for maintenance, servicing and continuous development. alseda has therefore been making an important contribution to the successful implementation of the behavioural banking approach for many years. 

Contact us at infomail (at)alseda.com for further information.