How Regional Banks Can Compete with Global AI-driven Phygital Leaders in 2026/27.

Regional Banks need to compete with Global AI-Driven Phygital Leaders.

In 2026–27, regional banks face a widening competitive gap as global leaders like BBVA and Bank of America advance AI-driven phygital transformation. To stay relevant, regional institutions must modernize both digital and physical experiences to match customer expectations.

AI-driven phygital branch design combines digital capability with human insight. By transforming traditional branches into intelligent advisory hubs, banks can deliver personalized experiences that connect online and offline touchpoints, building deeper customer trust and loyalty.

Our global perspective is shaped by benchmarking insights from leading international projects, delivering practical lessons on scaling innovation and building competitive differentiation, drawing on work with BBVA (Landor & Peinado Arquitectos), Valley Bank (Doner), and Zenit Bank (CampbellRigg).

BBVA’s branding and branch design strategy in Spain and South America positions the bank as a digitally led, customer-centric brand anchored in trust and innovation. Branches are reimagined as phygital advisory hubs that integrate AI-driven personalization, self-service technology, and human expertise.

Valley Bank USA’s branding and branch design strategy positions the bank as a trusted, community-rooted institution. Branch branding and design has evolved into welcoming advisory hubs that blend human interaction with smart self-service, supporting seamless digital-to-physical journeys.

The Competitive Challenge:
Legacy branch formats, fragmented customer journeys, and limited AI use risk diminishing relevance as expectations for personalized, seamless service rise. Across North America and Europe, competitors are converging on phygital models that reduce costs, increase engagement, and reinforce brand trust.

Above - Bus stop advertising: "The more you know, the better decisions you make." The campaign positions BBVA as a bank that uses data and artificial intelligence to put information in the customer's favour, helping them analyse their finances and improve their financial health.

For Valley Bank, the challenge is clear: legacy branches, fragmented journeys, and limited AI deployment risk diminishing relevance as customer expectations rise. To compete, Valley Bank must adopt a focused catch-up strategy, prioritising AI-enabled personalization, smart self-service, and flexible advisory-led branch formats.

Across North America and Europe, competitors are converging on similar models, using AI and phygital design to reduce costs, increase engagement, and strengthen brand trust. Success for regional players will depend on speed, clarity of vision, and the ability to align technology, marketing, and physical environments into a seamless customer experience that rivals global benchmarks.

The Problem for Change in Phygital Retail Banking:

Traditional branch models are no longer aligned with evolving customer expectations or cost pressures. Declining footfall, fragmented digital-physical journeys, and rising competition from fintechs are eroding branch value.

Customers expect personalized, seamless experiences across channels, while banks struggle with legacy layouts, inconsistent branding, and underutilized spaces. Without transformation, branches risk becoming cost centres rather than strategic growth assets.

The above advertisment: "We put all the opportunities of the world in your hands." Below: BBVA investes heavily in digital transformation, offering extensive mobile banking apps, online payment platforms, branch remodelling and, in some regions, cryptocurrency trading and custody services.

CampbellRigg helps banks design, brand, and deliver AI-ready phygital branch ecosystems that drive measurable performance. Our integrated approach, from strategic insights and customer journey design to branded spatial environments, helps banks transform branches into growth engines that enhance trust, efficiency, and long-term customer value.

The Strategic Solution:

The solution lies in AI-enabled phygital branch ecosystems that combine intelligent digital tools with human-led advisory engagement. By integrating AI personalization, smart self-service, modular layouts, and omnichannel data, banks can reposition branches as high-impact relationship hubs.

This approach improves efficiency, enhances customer trust, and enables scalable rollout across markets while aligning physical environments with digital brand promises.

The Emerging Customer Phygital Experience:
Customers now expect seamless transitions between digital platforms and physical spaces. AI anticipates needs and supports advisors with real-time insights. Branches become intuitive environments focused on meaningful interactions and complex decisions, driving deeper loyalty and retention.

AI anticipates needs, personalizes offers, and supports advisors with real-time insights. Branches become welcoming, intuitive spaces focused on advice, life moments, and complex decisions, supported by self-service for routine tasks. The result is greater convenience, stronger emotional connection, and increased loyalty.

CampbellRigg helps banks deliver brand, and AI-ready phygital branch environments that drive measurable performance. We align strategy, customer insight, brand positioning, and spatial design to create scalable branch formats, advisory lounges, and omnichannel experiences. From concept to rollout, we help banks transform branches into long-term customer value.

Our Four-Step Process:
1. Book a consultation call for free.
2. Co-create a bespoke brief. 
3. We execute the creative work fast.
4. You see sales, brand loyalty and market share uplift.

"World Class! CampbellRigg has taken Zenit Bank’s retail branch design to new heights." Alexey Kudryavtsev, Marketing Director Zenit Bank

Schedule a consultation today.

Cost-effective excellence:
Our pricing structure is highly competitive, offering exceptional value without compromising on quality or creativity.

Rapid execution:
We move fast. From concept to implementation, our agile team ensures your project is delivered on time and to the highest standards.

Multidisciplinary expertise:
Our team brings together seasoned brand strategists, architects, interior designers, and graphic designers, collaborating to create seamless, end-to-end brand environments.

Global reach, local insight:
With successful projects delivered across Europe, the Middle East, and Asia, we combine international experience with local market understanding.

Scalable project delivery:
Whether delivering a major brand transformation, a rebrand refresh, or a digital media campaign, we manage and execute projects of any scale with efficiency and precision. From flagship programmes to targeted strategic design of world-class retail and banking branch environments, we deliver seamless execution and measurable results.

Proven track record:
From retail banking to luxury private client lounges, our designs drive engagement, elevate customer experience, and deliver measurable commercial results.

Full-service creative agency:
From rebranding and marketing campaigns to spatial design and rollout, we provide an integrated service tailored to your goals.