In the context of digitalization of socio-economic systems, personalization of banking services is considered as one of main factors in increasing consumer loyalty and engagement. This work is aimed to research digital personalization in the banking sector with a focus on its role in managing consumer behavior. The purpose of this contribution is to show how digital personalization of banking services can be an effective tool for managing consumer behavior, as well as to outline challenges and limitations that arise when implementing hyper-personalization in banking. The authors analyze the existing practices of the world’s leading banks and consider the trends in the development of personalized services and loyalty programs. On the basis of statistical data and experience of digital technologies implementation in the banking industry, it is shown how personalization contributes to the growth of transactions, increase of average check and strengthening of competitive positions. The authors also discuss challenges and limitations associated with the implementation of hyper-personalization, including issues of security, privacy, regulatory compliance and the need for significant investment in infrastructure and human resources.