From Transactions to Interactions in Banking With CSI

What if your bank could recognize that you needed help before you had to ask for it? In this episode of Business Technology Perspectives, I speak with Michel Jacobs, Chief Strategy Officer at CSI, about how artificial intelligence and customer intelligence are changing the relationship between financial institutions and the people they serve. Community banks and regional financial institutions have traditionally competed through personal relationships rather than scale. But digital banking, fintech competition, and changing consumer expectations are putting that advantage under pressure. Michel argues that the future of banking will increasingly be defined by interactions rather than transactions. That means understanding why a customer is contacting the bank, what may be happening in their life, and which service could provide value at that moment. It also means preparing for interactions initiated through APIs, open banking services, and AI agents, rather than assuming every customer journey begins with a person opening a banking app. Michel explains how CSI’s Customer Intelligence Suite combines transaction information, card activity, merchant category data, and digital behavior to identify signals and changing patterns. According to Michel, these signals can help a financial institution understand when a customer’s circumstances may have changed instead of relying on the demographic category assigned when the account was opened. This creates opportunities for relevant financial support, but it also introduces serious questions about privacy, consent, accuracy, and customer trust. Inferring that somebody has changed jobs, bought a home, become a parent, or encountered financial difficulty can be useful when the response genuinely helps. The same capability can feel intrusive when it produces poorly timed sales offers or conclusions the customer cannot question. We discuss how banks can balance personalization with regulatory responsibilities and why younger consumers are less likely to remain loyal when a provider offers little practical value. As Michel puts it, the era of offering everybody the same account and throwing in a free beach ball has probably run its course. Customer retention is another major part of our conversation. Michel explains how declining digital activity, money leaving an account, late payments, or changes in income can reveal that a relationship is weakening. Used responsibly, this information could allow a bank to offer assistance before missed payments or financial strain become harder to address. For community banks, the answer is unlikely to be copying every product offered by the largest global institutions. Michel believes they should decide where they can provide distinctive value, then use technology and data to support that position. CSI’s stated aim is to give smaller financial institutions access to customer analytics capabilities that would otherwise require considerable internal investment. Can AI help banks become useful partners in their customers’ lives without crossing the line from personalization into intrusion? Listen to the conversation and share your thoughts with me.