High Tech, Higher Touch: Why the Future of Banking Will Still Run on Relationships

By Krista Phillips, Chief Customer Officer, M&T Bank

Digital banking adoption has reached historic levels. More than half of U.S. consumers now use mobile banking apps as their primary way to manage their accounts, and nearly all rate their bank’s digital experience as good or excellent.¹ AI, automation, and self‑service tools now power everything from fraud detection to payments and account servicing. Speed and convenience are no longer differentiators—they are expectations.

Yet as digital banking capabilities become table stakes, differentiation is shifting. The question is no longer what technology can do, but how it makes customers feel in moments that matter. Specifically: does this experience make me feel confident, comfortable, and supported—especially when my money or my business is on the line?

Banking is deeply personal. We help customers buy homes, save for retirement, and build businesses—some of the most consequential financial decisions they will ever make. While convenience matters, trust is not up for negotiation, particularly as AI becomes more visible in financial services.

A recent J.D. Power study highlights a clear tension: while most consumers expect AI to deliver faster, more seamless self‑service, far fewer say they trust it with financial advice or decision‑making. In fact, only 27% of consumers say they trust AI for financial guidance, even as 72% expect it to power convenient self‑service in the near future.² The gap between convenience and confidence remains significant. 

When it comes to money, trust is earned when banks are: 

• Responsive when something goes wrong 
• Clear and transparent when decisions are complex 
• Dependable over time, not just impressive in moments

Time and again, we’ve found that trust grows when we show up—often in-person—explain what customers need to know in plain language, and follow through consistently.

As more interactions move online, human skills like empathy, judgment, and emotional intelligence don’t diminish in importance—they become more strategic. The strongest banking experiences intentionally blend technology with human connection.

Our research underscores the enduring value of relationships in banking. Findings from our recent brand study show that customers consistently associate trust, reliability, and responsiveness with how they experience our bank—qualities rooted in personal connection and follow‑through. Even in an increasingly digital environment, customers value access to knowledgeable people who make banking feel easier, more human, and supportive when it matters most.

This preference extends across the industry. According to Deloitte research, 74% of bank customers still prefer human agents over automated bots, even for relatively routine interactions.³ When complexity, risk, or uncertainty enters the picture, people want people.

The most effective banking experiences are not fully automated or fully manual—they are intentionally designed to combine both.

Consumers are generally comfortable with AI handling background tasks such as fraud monitoring and transaction analysis, where technology operates quietly and efficiently behind the scenes. Acceptance of AI is highest in areas like fraud detection and risk management, where it improves security without replacing human judgment.⁴

But as situations become more personal or nuanced, customers want people involved.

This is where thoughtful escalation paths matter. Self‑service works best when customers know a real person will take ownership when judgment, empathy, or context is required. Smooth handoffs don’t slow the experience—they reinforce confidence.

This is how trust and relationships compound:

• Technology removes friction
• People provide context, judgment, and reassurance
• Together, they create confidence

Well‑designed escalation paths don’t signal failure. They signal readiness—showing customers that their bank is grounded, capable, and prepared to support them as their needs evolve.

Trust is also strengthened through transparency. Whether it’s explaining why a transaction was flagged, how an alert was triggered, or what options are available next, clarity within the experience builds confidence and reduces friction.

Research from J.D. Power and FIS shows that consumer concerns about AI center on security, accuracy, and accountability—not opposition to innovation itself. Clear language, visible safeguards, and openness about how AI supports decisions make digital innovation feel supportive rather than risky.⁵

The future of digital banking is not a choice between high tech and high touch. It’s about using technology to elevate the human experience.

Technology removes friction. Human insight creates trust. And trust fuels long‑term value across consumer, commercial, and wealth relationships.

The banks that lead next will be those that deliberately design for trust—using technology to scale efficiency, and people to deliver confidence when it matters most.

Connect with an M&T representative to discuss your needs and learn how we can support your financial journey.

¹ American Bankers Association & Morning Consult, Consumer Survey: Banking Methods 2024 (Nov. 2024). 

² J.D. Power, AI Acceptance in Financial Services Survey (Sept. 2024); J.D. Power Banking & Payments Intelligence Report (2025). 

³ Deloitte, AI Banking Chatbots: From Frustration to Delight, Deloitte Center for Financial Services (July 2025). 

⁴ Deloitte; Forbes Technology Council, AI Applications in Fraud Detection in the Banking Industry (2025). 

⁵ J.D. Power; FIS, Consumer Trust in AI and Digital Financial Services (2024–2025).