Priya Patel
TLDR:
This article explores the top trends that banks are prioritizing in 2024. It discusses the evolution of retail banking trends over the past four years and the challenges that banks face in catching up with digital disruption. The article highlights the importance of data, AI, and predictive engagement in creating personalized customer experiences, and warns of the dangers of failing to prioritize these areas. The article also mentions the need for improved analytics capabilities and an understanding of customer preferences in order to provide consistent omni-channel experiences. It concludes by emphasizing the urgent need for banks to invest in digital transformation to avoid extinction in a rapidly evolving industry.
Key points:
- In 2021, banks focused on expanding their digital capabilities and improving customer touchpoints, but failed to keep up with the personalization offered by tech giants.
- The 2024 Retail Banking Trends and Priorities report reveals a shift in priorities towards data and analytics, reflecting the importance of personalized emotional connections in determining customer lifetime value.
- Many banks are struggling to prioritize data and AI, potentially due to budget reallocation difficulties, skill shortages, lack of leadership conviction, and legacy biases.
- Institutions are currently using data and AI for risk management, process automation, chatbots, and customer insights, but few are using it for predictive life event marketing, intelligent advisory services, advanced alerts and notifications, or hyper-personalization.
- Banks must address the barriers to digital transformation, including technology debt, organizational and cultural hurdles, and skill deficits, in order to stay competitive in an industry that is continually evolving.
