As banking enters a digital-first era, many regional banks are adapting to meet the new market.
From adopting artificial intelligence to refining digital strategies, banks in Central Kentucky are working to meet customers where they are with products and services they want and will use.
According to the American Bankers Association, Americans use mobile apps to bank more than any other method, with 54 percent of customers choosing apps on their phones or other mobile devices as their top option for managing accounts. Another 22 percent choose online banking via laptop or PC, while only 9 percent prefer visiting a branch, 6 percent favor ATMs, and 4 percent opt to bank by phone.
The ABA said the share of customers choosing mobile banking apps has more than doubled since it first conducted the survey in 2017, when only 26 percent said mobile apps were their preferred method.
About two-thirds of Gen Z (63 percent) and millennials (67 percent) use mobile banking apps the most, while more than half of Gen X adults (56 percent) do. For the first time in the survey’s history, more than a third of Baby Boomers (38 percent) said they primarily use mobile apps, while the number who said they primarily use online banking fell from 41 percent in 2024 to 35 percent. When it comes to branch visits, one in eight Baby Boomers (12 percent) visit branches, while only 3 percent of Gen Z prefer branch banking.
Additionally, artificial intelligence is helping customers and banks manage financial transactions, while third-party platforms — including peer-to-peer services like Venmo, Zelle, and Cash App — give customers more options.
To adapt to these trends, banks are increasingly focused on digital strategies. In March, Republic Bank named Alex Cravens its new chief digital officer, while Jenna Cowley was promoted to chief transformation officer.
“Together, these appointments underscore Republic Bank’s commitment to strengthening its digital capabilities, enhancing the client experience, and building the bank of the future,” the bank said in a press release.
Across Central Kentucky, banks are seeing similar trends.
Bill Allen, CEO of Bank of the Bluegrass, said his bank’s customers are moving to digital platforms for nearly all aspects of their banking needs.
“Once a business or personal customer relationship is established, the majority of customer transactions take place within the app or an online channel,” he said. “The majority of debit card purchases still occur with a tap or card insertion at the point of sale; however, we are seeing an uptick in customers placing their traditional bank debit or credit card in their mobile wallet and choosing to make purchases that way. Zelle and other P2P platforms continue to increase in usage, with many customers tying these to their personal checking account.”
The bank is also seeing an increase in customers initiating home loan inquiries online, though most lending relationships still begin with a conversation between the borrower and the bank, he said.
That means focusing digital solutions on what works for customers first, he said.
“Whether it’s opening an account, transferring money, applying for a mortgage, or simply checking balances, clients can do what they need from the comfort of their own home — in a less time-consuming way than even 10 years ago,” he said. “We’re always here when they want to speak with a real person, but they also have the flexibility to access us from anywhere — across the nation or around the globe.”
Dana Adamson, chief marketing and development officer at Traditional Bank, said the bank’s digital strategy centers on customers.
“As a community bank, we view technology decisions through a customer-first lens, seeking thoughtful and strategic solutions to streamline operations and enhance the customer experience,” Adamson said. “For our bank, digital strategy is all about meeting the customer where they are. From that perspective, we continually invest in making our mobile apps as strong as possible for both personal and business customers, with a goal of replicating an in-person experience to the fullest extent possible.”
That means adapting to new technologies, but only where it makes sense.
“As it relates to AI, we see an opportunity to create efficiencies across the bank and support intentional growth, especially in critical areas like fraud prevention and cybersecurity,” she said. “At a high level, we believe there is no true substitute for face-to-face interaction. We will always lead with the human touch. While we explore ways to implement AI behind the scenes to enhance our digital capabilities, our approach will remain people-first.”
For business customers, while banking may happen online, Kathy Beach, chief operations officer at Stock Yards Bank & Trust Co., said many still want to know their banker and build a personal relationship.
“There are many [business customers] who wouldn't dream of opening an account online as opposed to coming into the bank,” she said. “Although we offer all of these digital services, for opening an account, the number of customers who come in to do so far exceeds the customers that do that online.”
At Stock Yards, the digital focus is on making banking more convenient.
“One of the things that we've been focusing on this year is trying to bring every ancillary app that our customers do banking with… we're bringing all of that technology into our Stock Yards Bank app so that customers never have a reason to leave the app,” she said. “Another thing that we'll be doing this year is updating our app and giving it a fresh look. We're looking forward to that kind of an extreme makeover.”
Banking leaders agree that leaning into digital services starts with the customer — not with trends. Providing financial services in an evolving landscape remains their primary mission, regardless of how or where customers choose to engage.