The Overlooked Phase of Transformation

“Digital transformation” has long been the rallying cry in financial services and has rightfully prioritized innovation and modernization. But in the rush to build new digital platforms, one critical phase continues to get overlooked: migration. Once systems go live, attention often fades. But that’s precisely when customer trust is most vulnerable.

Why Customer Migration Is So Hard

Client migration is technically complex, operationally demanding, and emotionally charged. Poor execution risks serious attrition. In the U.S., 51% of consumers say they’ve already switched their primary bank, and 18% more are considering it. In a digital-first world, customer migration is more than a technical challenge—it’s a retention strategy.

The complexity is real: legacy data rarely maps cleanly to new systems. Client profiles, workflows, and permissions must be rebuilt. Disruption is inevitable—new logins, changed interfaces, and altered service flows. Commercial clients may face failed payments, missed cutoffs, or broken integrations. And if internal teams aren’t ready, chaos follows.

Common Pitfalls That Sink Migrations

Migrating bank customers and their data is a complex process fraught with potential hazards. Even experienced institutions can make avoidable mistakes like adopting an overly simplistic approach. Consider the TSB fiasco in 2018 that resulted in reported financial losses of £105.4 million in the first half of that year alone—not to mention the disruption to customers and resulting reputational damage.

These mistakes disrupt customer experience and inflate operational costs. Let’s look at specific ways this can occur.