The Slow Climb: Why US Banking’s Recent Progress is Only the Beginning
The landscape of American banking is undergoing a subtle but distinct shift. According to the recently released Forrester’s US Banking Total Experience Score Rankings, 2026, the industry has finally broken out of a period of stagnation. For the first time in recent years, Total Experience (TX) scores—a proprietary metric that bridges the gap between Customer Experience (CX) and Brand Experience (BX)—are trending upward.
While this represents a significant victory for a sector often criticized for its complexity and friction, the report offers a sobering reality check: progress is incremental, and true excellence remains elusive. As banks navigate a volatile economic climate and changing consumer expectations, the data suggests that while the industry is moving in the right direction, it is doing so with cautious, modest steps rather than bold, transformative leaps.
The State of the Industry: Modest Gains in a Mediocre Landscape
Forrester’s latest analysis reveals a clear trend of improvement across the board. Customer sentiment is brightening, and brand perceptions are beginning to recover from the lows observed in 2025. This momentum is not isolated; it is a widespread phenomenon affecting a significant portion of the US banking sector.
However, beneath the surface of these improved scores lies a more nuanced narrative. Perhaps most tellingly, not a single institution achieved an “excellent” rating across the trifecta of CX, customer BX, or non-customer BX. For the average consumer, the banking experience remains squarely in the realm of the “mediocre.” The industry is successfully moving forward, but the velocity of that progress is insufficient to meet the heightened demands of the modern, digitally savvy consumer. The gap between “functional” and “exceptional” remains a chasm that few banks have managed to bridge.
Chronology of Change: From Crisis to Measured Recovery
To understand the current state of US banking, one must view the last few years through the lens of a broader recovery cycle.
- 2023–2024 (The Era of Friction): Banks faced significant challenges as interest rate fluctuations and economic uncertainty led to a decline in trust. Customer feedback during this period highlighted frustration with opaque fee structures and digital tools that promised efficiency but delivered complexity.
- 2025 (The Plateau): The industry largely stagnated. While many banks invested heavily in digital transformation, the returns on these investments in terms of customer satisfaction were limited, as technology often outpaced the human-centric service models required to sustain long-term loyalty.
- 2026 (The Fundamentals Turn): The current report signals a pivot. Banks have largely abandoned the pursuit of “bold reinvention” in favor of a disciplined focus on the fundamentals. By prioritizing clarity, removing obstacles, and simplifying core processes, institutions have managed to move the needle on their TX scores for the first time in two years.
The Drivers of Improvement: The Power of Fundamentals
The Forrester report makes one point abundantly clear: the banks showing the most significant gains are not necessarily the ones with the flashiest apps or the most aggressive marketing campaigns. Instead, they are the banks that have mastered the “basics.”
In an industry where trust is the primary currency, customers prioritize predictability. The banks that are winning are those that successfully eliminate unnecessary friction in the customer journey. This involves:
- Clarity of Communication: Simplifying account disclosures, fee structures, and service agreements to ensure that customers understand exactly what they are paying for and what they can expect from their institution.
- Process Simplification: Reducing the number of steps required to complete common banking tasks—from mobile check deposits to loan applications.
- Expectation Management: Clearly defining service timelines and outcomes, thereby reducing the anxiety often associated with banking transactions.
These fundamentals act as a force multiplier. When a bank stops forcing its customers to navigate internal bureaucracy, the cumulative effect builds a level of trust and confidence that marketing alone cannot purchase.
The Great Divide: Leaders vs. Laggards
A striking pattern has emerged in the 2026 rankings: a widening chasm between the top-performing institutions and the laggards. The leaders have recognized that banking is a relationship business that happens to be facilitated by technology, not the other way around.
Leading banks are successfully integrating their CX and BX strategies, ensuring that the brand promise (“We are here for you”) is consistently reflected in the user interface and the customer support interaction. Conversely, the laggards continue to suffer from fragmented experiences. In these institutions, the marketing department speaks one language, the digital app provides another, and the in-branch experience contradicts both. This lack of cohesion is the primary driver of the “mediocre” scores that continue to plague the lower half of the rankings.
Measurable Growth: Turning Advice into Assets
Forrester’s data highlights that the most consistent drivers of improvement are those that directly impact the customer’s financial wellbeing. Banks that have successfully positioned themselves as partners—rather than mere service providers—are seeing the greatest growth.
Specifically, the report identifies three core areas for improvement:
- Quality Advice: Customers are increasingly looking for personalized financial guidance. Banks that offer actionable, relevant advice—rather than generic product pitches—consistently outperform their peers.
- Fair Pricing: Price is not just about the cost of a service; it is about perceived value. Customers who feel that their pricing is fair and transparent are significantly more likely to remain loyal.
- Relationship Predictability: Customers judge their bank not on a single, isolated interaction, but on the consistency of the relationship over time. A bank that is “fair” in its dealings today but “opaque” tomorrow will struggle to maintain high scores.
The Hidden Variable: The Role of Employee Experience (EX)
Perhaps the most significant addition to this year’s analysis is the integration of Forrester’s Employee Experience Index (EX Index™). For years, the industry focused almost exclusively on the customer. The 2026 report shifts the spotlight, noting that it is nearly impossible to deliver a world-class customer experience if the internal machinery of the bank is failing its employees.
The results of this new index are, frankly, a warning shot. Approximately half of the banks surveyed showed a negative EX impact. These banks are essentially asking their employees to build a house on a sinking foundation. When employees are hampered by outdated technology, unclear leadership, or a lack of professional growth, their ability to provide the empathy and clarity required for high-level CX is severely compromised.
Conversely, the small group of banks that showed a positive EX impact are those that empower their staff. These institutions treat employee satisfaction as a lead indicator for customer satisfaction. They understand that career growth, reliable technology, and a supportive coworker environment are not just “HR perks”—they are essential components of the bank’s competitive strategy.
Strategic Implications: Where Does the Industry Go From Here?
For banking executives looking to navigate the year ahead, the 2026 rankings provide a clear roadmap:
- Stop the Reinvention Obsession: Focus instead on the “un-sexy” work of removing friction. Before launching the next big digital feature, ask if the existing ones are actually working for the customer.
- Invest in the EX-CX Link: Acknowledge that employees are the primary delivery vehicle for your brand promise. If your staff feels frustrated or unsupported, your customers will feel the ripple effects of that frustration.
- Prioritize Transparency as a Growth Strategy: In an era of skepticism, transparency is a competitive advantage. Use clear language and fair pricing as a way to differentiate your brand from the “mediocre” pack.
- Audit the Customer Journey for Consistency: Ensure that the brand experience is identical whether the customer is interacting with a chatbot, a website, or a human teller. Fragmented journeys are the death of loyalty.
Conclusion: The Long Road to Excellence
The 2026 Forrester rankings serve as both a commendation and a critique. The US banking industry has successfully navigated away from the bottom of the curve, showing that progress is possible when focus is applied to fundamentals. Yet, the industry remains trapped in a “mediocrity loop,” unable to push into the realm of excellence.
As we look toward the remainder of the decade, the banks that will win are those that stop viewing CX, BX, and EX as separate silos and start treating them as an integrated system. The road to improvement is not paved with revolutionary tech or disruptive business models; it is paved with the hard, consistent work of making banking simple, fair, and human. The 2026 data shows that the industry has finally started walking that road—the question now is whether they have the discipline to keep going.