Retail Banking’s focus in 2023 is towards prioritizing customer experience strategies that are driven by data and consistent across the various touchpoints the bank has with its client. A challenging growth period would also require more personalized advice and partnerships with customers.
- A Move Towards Total Experience (TX): Retail Banks are expected to increasingly harness customer data to deliver a higher level of personalization at each touchpoint the bank has with the client. The omnichannel experience of individual customer touchpoints, over a variety of channels that seamlessly connect, allowing customers to pick up where they left off on one channel and continue the experience on another, will become ever so important. This means Fintech companies in 2023 become increasingly associated with traditional banks to deliver on the TX. This is further substantiated by TDB’s Digital CX 2022 survey where it was concluded that financial institutions can maintain a competitive advantage by building up their digital competencies tempered with best-in-class service to adapt to fast-changing customer needs. Despite the extensive use of digital channels and deployment of a digitally enabled front-end the need for human interaction still remains relevant.
- The rise of Banking-as-a-Service (BaaS) & Embedded Finance: By embracing the BaaS ecosystem and Embedded Finance, banks will be able to find more revenue opportunities while reducing operational costs. In BaaS, licensed banks integrate their digital banking services into the products of non-banking services. For example, an eCommerce website offering digital banking services such as loan payment services, mobile payment cards, debit cards, etc., without having to acquire a banking license. Embedded finance is the integration of financial services into a traditional non-financial service. For example, investing in the stock market, mutual funds, and retirement plans, without leaving the Bank platform is a simple example of embedded finance in action. According to TDB Insights the global embedded finance market should reach a projected USD 100 billion by 2026 as use cases expand and further integration across various digital ecosystems is enhanced.
- AI an integral part of workflows: AI is projected to reduce banks’ operating costs by 22% around 2030, which could amount to USD1 trillion of savings ahead. Natural Language processing will become a standard in customer interactions by 2023. Imagine having AI aggregate all the data from all your financial accounts, activities, and spending to generate and provide valuable financial insights on the go and support you as your personal financial advisor.
Author: Nishtha Asthana
