By Kevin Phillips, Director, Solution Engineering, Fintilect
Hyper-personalization is a concept that is now firmly expected by consumers from their financial services providers.
Indeed, if a bank, building society, credit union or other provider treats all customers as equals, neglecting their individual financial aims and ambitions, they are likely to do more harm than good. In today’s ultra-competitive financial services landscape, where it is easier than ever to ditch-and-switch, this could spell disaster for financial providers.
However, the concept of ultra-personalization – the use of real-time data, AI, and behavioural analytics to tailor banking services, products, and communications to specific needs – is now also expected by UK businesses. Increasingly, this is causing financial providers to sit up and reevaluate their business banking offering.
Why Does Hyper-Personalization Matter in Business Banking?
It is very rare to find businesses that are identical. Just as individual consumers have unique needs when it comes to factors such as cash-flow cycles, credit needs and growth plans, so do businesses – especially small businesses.
For example, a bakery, a freelance designer, and a local gym will all need banking – but each one will have completely different requirements. Hyper-personalization allows financial providers to treat them accordingly. It is this ability to offer a relevant service, such as suggesting a credit facility during a cash-flow crunch, that will build trust. It shows the businesses that their bank “has their back” and is proactively looking out for their specific needs.
In turn, this will help to increase engagement. If a financial provider offers personalized dashboards, insights, and alerts, it is likely to increase how often businesses interacts with them. By doing so, there is a higher likelihood that the business will adopt additional products, which will increase overall revenue for the bank, building society or credit union.
Furthermore, many financial providers still face a struggle with legacy systems. If a smaller or more agile institution can offer hyper-personalized experiences that can compete more effectively, or even outperform larger competitors, they are likely to hit the bullseye when it comes to customer satisfaction levels.
Open Banking and Hyper-Personalization
Open banking has gone some way to offering a degree of individuality to business banking interactions.
Indeed, the UK is one of the world leaders in open banking thanks to the Competition and Markets Authority (CMA) order in 2016. This required major banks to make customer data accessible via secure APIs, and – as of 2025 – millions of UK businesses and consumers use open banking-powered services daily.
However, relying on open banking is not enough to satisfy the ultra-personalized approach that is increasingly demanded by UK businesses. While it will give banks real-time access to clients’ broader financial including payment behaviours, loan obligations and income patterns, a much deeper level of insight is needed. Open banking provides access to a limited degree of data, but true ultra-personalization requires far more detail and the ability to make smart, efficient and swift use of that data.
To go from basic data access to providing a true ultra-personalized service, business banks need additional components, including harnessing advanced data analytics and AI. This will enable the provision of predictive modelling, behaviour-based recommendations, real-time alerts and anomaly detection and client segmentation at a granular level. One such example could be with a florist business with the recognition of seasonal cash flow patterns and automatically offering a short-term loan every March before the incredibly busy Mother’s Day period.
APIs and fintech integration is also needed. While open banking gives access to core data, ultra-personalization means connecting services that help run the business. Platforms such as QuickBooks, Stripe, PayPal and Square, in addition to payroll and tax tools, can all function harmoniously together. One such example might be a dashboard showing cash flow, VAT obligations, and staff payroll all in one place, tailored specifically to the client’s exact business requirements.
However, does this mean the human touch is now redundant? Absolutely not. Even the best digital journeys benefit from relationship managers or business bankers who can interpret insights, offer strategic advice and build trust and rapport. Ultra-personalization isn’t always automated; it can also mean human contact at just the right time.
Conclusion
Hyper-personalization in business banking isn’t just a trend. Rather, it is a strategic shift in how banks, building societies and other providers can better serve, retain, and grow with small business clients in a data-driven economy.
However, to do this, reliance on the concept of open banking – firmly entrenched in the UK’s financial services landscape – will not be enough. While providing a useful starting-point, open banking only goes so far.
Business bankers now need to look much more closely at the many tools now available to really get under the skin of their clients and offer a true, personalized service.
Kevin Phillips, Director, Solution Engineering, Fintilect.
Kevin Phillips has over 25 years’ experience gained within the financial services market. Kevin is a champion of excellence, quality, integrity and bringing the best out of others to be as successful as they can be.
