Acquiring new customers is expensive. Banking services can adopt many customer acquisition strategies to reduce CAC, but the acquisition is challenging when there are too many players in a market. At the same time, customer retention is five times cheaper than customer acquisition. It also reduces CAC by upselling and cross-selling to existing customers. Banking customers are generally not satisfied with their service.
With the proliferation of technology, banking customers are living in a connected world with their experience from other industries influencing their expectations from their financial services provider. This has led to an evolving customer-bank relationship necessitating banks to be more customer-centric by embedding themselves in customers' lives to meet rising customer experience expectations. However, banks have been facing challenges in meeting customer expectations, as they are troubled with legacy challenges both in terms of technology and culture. This document aims to understand and analyze the trends in the banking industry that are expected to drive the dynamics of the banking ecosystem in the near future.
How well do banking enterprises know their customers and why does it even matter? In an era where customer experience can either make or break a brand, staying on top of your customers' preferences to sustain in the competitive market. Let's look at a few questions to understand what should be your top priority at this moment: Now the million-dollar question is how do you achieve all these? Harnessing the power of intelligent process automation will be your key in transforming your bank's customer service. Now, let's look at how global banks are utilizing AI to engage with customers, transform CX, and boost ROI.
The UK's largest current account provider has reported problems with its online banking service. Lloyds Banking Group said some customers with Lloyds' accounts faced "intermittent issues" when trying to log onto the online system. It has apologised and says it is trying to resolve the problem urgently. App services are working normally. The bank has 10 million account holders, 60% of whom use digital services.
With technological advancement, artificial intelligence is set to touch and modify the financial sector, specifically retail banking in many different ways. A Narrative Science survey highlighted that 32 per cent of financial executive participants utilizes AI technology, such as voice recognition and predictive analytics. Moreover, an Accenture survey noted that 76 per cent of those surveyed believe most banks will use AI interfaces primarily for customer interaction by 2020. But AI is changing retail banking in more ways than one. IT costs are a pain point of retail banking, as they can account for as much as 10 to 15 per cent of a bank's total annual expenditures.