20 Ways Financial Institutions Can Increase Customer Trust

Forbes

5 hours ago

Today's financial landscape is shaped by rapid innovation, but also economic uncertainty and increasing regulatory complexity. Customer trust in this industry is more critical than ever: Users want clarity, security and transparency from the institutions that manage their money.
Earning this trust requires a combination of proactive communication, ethical decision-making and smart, compliant use of technology. To help your financial institution strengthen customer trust and transparency, 20 members of Forbes Finance Council share the strategies they've seen work.
1. Improve Customer Service With Sophisticated AI Support Tools
They should focus on customer support. Replacing simplistic, menu-based IVR systems with sophisticated, human-centered AI support tools allows financial institutions to deliver empathetic, timely and transparent service. This approach not only solves customer problems more effectively but also builds long-term trust in an environment where financial systems are becoming more complex. - Alexey Posternak, INTEMA.AI
2. Highlight Broader Market Opportunities, Not Just In-House Solutions
Offer clients open-architecture access to the best ideas and investment opportunities across the entire market. Too often, clients are steered toward in-house solutions under the guise of advice, when, candidly, they are being limited to a narrow slice of what's available. Trust is built when advisors make recommendations that are tailored to their clients' goals, not an institution's bottom line. - Thomas H. Ruggie, ChFC® CFP®, Destiny Family Office
3. Adopt Values-Based Banking Principles
Financial institutions can adopt values-based banking to improve trust and transparency. By clearly showing customers how their deposits fund beneficial projects like affordable housing and renewable energy, banks demonstrate that money can create positive change. This transparent approach helps customers align their finances with their values while building a more inclusive economy. - Monique Johnson, Beneficial State Bank
4. Provide Automated Payments And Invoicing
Banks build trust through secure, consistent and customized experiences. For example, to better serve merchants (a bank's enterprise business customers), loyalty-building payment experiences must consider regulatory needs, operational challenges and buyer preferences. Choosing a partner to provide automated payments and invoicing systems facilitates preferred transaction methods for B2B buyers. - Brandon Spear, TreviPay
5. Combine Transparency With Good Judgment To Share What's Relevant
Trust is built on good judgment, not just transparency. Oversharing in the name of transparency can be overwhelming and counterproductive. Data dumps don't usually help clients make decisions. Clients want clear and understandable information. Financial institutions can build trust by judiciously providing key information to help clients make confident decisions without unnecessary complexities. - Neil Kawashima, McDermott Will & Emery
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6. Explain Options And Fees Clearly And Simply
Perspective is key. Understand that clients don't know what you know. Explain in a simple manner so clients understand the situation and can trust you. Also, always be clear about pros, cons and fees to remain transparent. Lastly, take the lead on keeping the client informed on new updates. - Dessy Prasad, RIA Innovations
7. Ensure Customers Know Where Their Funds Are Going
Zoom in on the fine print and make it crystal clear. Customers deserve to see where their money is going and why, without the complex legal language. In a noisy world, trust comes from showing the full picture. Customers may not like change, but they will not tolerate being kept in the dark. Clarity in communication is non-negotiable. Communication must be delivered accurately and in real time. - Karla Dennis, KDA Inc.
8. Communicate Proactively About Potential Challenges
When it comes to managing people's money, enough cannot be said about proactivity. When the tariffs set in, our investment and marketing teams worked together to reassure legacy investors that 1. We were aware of how the situation might impact them and 2. We are always here to discuss concerns. Hopefully, this created a comfort level for our clients, knowing we have their financial welfare in mind. - Christopher Steward, Legacy Group Capital
9. Allow Customers To Choose Their Level Of Automation
Let customers choose how much automation they are comfortable with-full AI, hybrid or human review, and explain how key inputs shape outcomes. In a world where algorithms drive credit, investing and advice, giving people control and visibility builds trust in what they can't see. - Anshuman Yadav, PAR Technology
10. Prioritize Speed Of Payment And Accuracy Of Information
Customers want immediate, secure and seamless experiences with financial transactions, just as they do with other digital platforms. Faster payments can provide that transparent, instant and easy payment experience that today's customers seek. Accurate account balances, messaging, control and more that faster payments bring go a long way in improving trust and confidence in payments. - Reed Luhtanen, U.S. Faster Payments Council
11. Send Real-Time Mobile Alerts For Suspicious Activity
Financial institutions should offer a seamless, secure mobile experience with real-time alerts for suspicious activity to build trust and transparency. Disclosing all fees and promptly addressing breaches builds confidence and shows customers that their safety and clarity are top priorities. In a digital world, trust begins with reliable access and clear communication. - Nike Ajao, OneBarrow Corp.
12. Use Technology To Educate And Inform Clients On Financial Activity
Financial institutions can implement real-time transaction alerts and personalized financial insights to improve customer trust. By leveraging technology to provide transparency in account activities and educate clients on their financial behaviors, institutions can foster trust and engagement, ensuring customers feel informed and empowered in their financial decisions. - Letitia Berbaum, Blue Sands Wealth
13. Balance Personalization With Privacy When Using Customer Data
Be mindful and intentional about balancing personalization with data privacy. When an organization is seen strategically walking this tightrope, it builds trust and loyalty. Using customer data to personalize the brand experiences shouldn't expand the attack surface for threat actors. Frequently auditing data collection practices can help ensure you're only capturing what's essential. - Lindsey Downing, TransUnion
14. Use Explainable AI To Provide Insights On Financial Decisions
Financial institutions must embed real-time, explainable AI into customer interactions—offering clear, personalized insights on decisions, not just outcomes. Transparency isn't just disclosure; it's empowering clients with context, building trust through clarity, control and continuous engagement. - Swati Deepak Kumar (Nema), Citigroup
15. Develop 'Decision Audit Trails' To Provide Context
Create a 'decision audit trail' to show customers how and why financial decisions or recommendations were reached, including data, assumptions and alternatives. Transparency behind the scenes fosters confidence, demystifies the process and encourages interaction, making clients educated collaborators rather than passive recipients. It makes trust real, not just promised. - Neil Anders, Trusted Rate, Inc.
16. Keep Infrastructure Simple And Up-To-Date
Simplify infrastructure. It's hard to trust a bank when a fee structure is murky or service queries stay trapped in legacy systems. Even if customers don't know why their experience is poor, they know their money and time are getting tighter. Building trust starts with positive outcomes, and the more banks look within, the easier those are to realize. - Rahim Madhavji, Knightsbridge Foreign Exchange
17. Overcommunicate
Overcommunicate and have follow-up calls. Ask a lot of questions and listen to what the customer is saying. Be authentic and real with the client, and show them how you can help with whatever they're saying is important to them. - Zachary W. Herzog, Wolfgang Capital LLC
18. Use A DID System To Minimize Breaches
Implement a decentralized identity (DID) system to let individuals manage their own identity information through blockchain technology. This can seriously cut down the chances of data breaches, especially since the institution isn't holding onto all that sensitive personal info in one place. It's also a step toward transparency, which could help build stronger trust with users. - Jake Claver, Digital Ascension Group
19. Explain Financial Concepts In Depth, Even To Experienced Clients
A great way to build trust and transparency is to explain financial concepts as if the client is hearing them for the first time—even if they're experienced. This approach avoids assumptions, opens the door for better questions and shows that you care about clarity over complexity. It's not about dumbing things down—it's about making sure every client feels confident and truly informed. - Michael Foguth, Foguth Financial Group
20. Include A 'Cost And Risk' Ledger In All Offerings
Respectfully mandate that each product expose a live, plain-language 'cost and risk ledger' inside the mobile or web app: real-time fee accrual, risk-adjusted return projections and the bank's margin-all verifiable via an auditable open-banking data trail. Radical, self-serve transparency erases information asymmetry and cements trust. - Terry Chen, Modulate
The information provided here is not investment, tax, or financial advice. You should consult with a licensed professional for advice concerning your specific situation.