The demand for personalised services becomes even more pronounced when people are living or working across borders, Zhong says. “Their financial arrangements span multiple currencies, regulations and life transitions. These groups face currency risk, transfer fees, compliance complexity and fragmented financial histories.
“They therefore place strong value on services that allow them to move money easily, view accounts in one place and maintain the same level of recognition wherever they are. For these consumers, personalisation isn’t a luxury – it’s a functional necessity.”
Genuine innovation
The financial services sector has been reimagining products to meet this demand for flexibility. Zhong says there has been genuine innovation in modular financial products, which allow customers to pick and adjust features.
“Buy Now, Pay Later products were an early signal, disaggregating credit from traditional credit cards. Now we’re seeing modular insurance offering pay-per-use cover, neobank accounts where consumers can toggle fee structures, and investment platforms where users build their own portfolio rules.
“The direction of travel is clear - product design is shifting from bundled to unbundled and back to selectively re-bundled around individual preferences.”
Digital offerings from major banks are also giving customers greater choice and control, providing opportunities to selectively re-bundle features within bank-designed frameworks.
“Banks offer a core account and then let customers switch on or qualify for specific elements such as rewards, fee waivers, bonus interest mechanics, or partner benefits,” Zhong says. “The choice is real, but it sits inside boundaries set by the bank.”
Whether they are banks or fintechs, financial service providers must strike the right balance between offering flexibility and keeping their products user-friendly, Zhong says.
Consumers don’t just compare banks with other banks, but with other digital platforms that offer seamless, tailored experiences. They welcome the ability to adjust features such as rewards, fees or savings incentives – but only if it can be done easily.
“People do want flexibility, such as being able to dial up or down features like savings bonuses or rewards, but only when it’s intuitive,” she says. “If a product feels complicated or the trade‑offs aren’t clear, customers disengage quickly.
”Personalisation enhances value when it reduces friction and delivers relevance. It backfires spectacularly when it is deployed prematurely or without regard for trust.”
Blurred boundaries
Banks aren’t just competing with each other in this new landscape of personalised, multi-layered services. Banks, telcos and retailers are increasingly operating in overlapping territories.
“This convergence is one of the most significant structural shifts in financial services right now,” Zhong says. “Banks are building retail ecosystems; retailers are issuing credit products, telcos are embedding payments and insurance.
“The competitive boundary between a bank, a retailer’s loyalty program, and a telco’s data platform is genuinely blurring. Data is the common currency, and whoever has the richest behavioural data wins the personalisation race.”
In the battle for consumers who want more for less, incumbents and challengers alike are having to rethink their products. For providers of financial services, personalisation in itself is no longer a differentiator, Zhong says.
“The new differentiator is trusted execution at scale. Institutions that can use data responsibly to deliver relevant and timely experiences are able to differentiate themselves, while those that cannot risk losing relevance.”
Flexible banking
Banks offering increasingly personalised services include HSBC’s premium banking service, HSBC Premier offers options including a choice of benefits and enhances services for globally minded customers in Australia and overseas, and access to a specialist team that can provide tailored solutions to specific needs. Through the HSBC Everyday Global Account, this is one gateway to accessing HSBC Premier*
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Disclaimer:
This advertisement provides general advice only and doesn’t take into account your objectives, financial situation or needs. Consider the Transaction and Savings Accounts Terms (PDF) and Financial Services Guide (PDF) before acquiring this product, available by calling 1300 131 605, at your local branch or www.hsbc.com.au.
*Please refer to the T&Cs and check eligibility criteria. Banking service fees and charges may apply. Issued by HSBC Bank Australia Limited ABN 48 006 434 162. AFSL 232595.
