Artificial Intelligence Can Enhance the Customer Experience in Retail Banking: New Research From Info-Tech Research Group
The firm's research suggests that banks take into account emerging AI trends, as the existing offerings, services, procedures, and operational frameworks were primarily established before the advent of the internet.
TORONTO, June 22, 2023 /PRNewswire/ - In today's fiercely competitive retail banking industry, retail banks face increasing pressure to enhance and simplify customer experiences across various channels, such as in-branch, online, mobile, and call centers. However, organizations are grappling with the challenges of technological advancements while larger competitors with greater resources invest in cutting-edge solutions. Balancing fixed budgets and escalating business demands adds further complexity. To help IT leaders in the banking industry address mounting customer expectations, global IT research and advisory firm Info-Tech Research Group has published its latest research, The Future of Retail Banking.
The firm's new resource emphasizes the growing need for advanced technologies to help identify and support new opportunities in the current business landscape. Achieving alignment between the business and IT requires retail banking organizations to adopt agile techniques, scale governance, and establish efficient communication strategies.
"Retail banking is undergoing a significant transformation, requiring banks to adopt advanced technologies such as natural language processing (NLP), artificial intelligence (AI), and machine learning (ML) to become trusted partners and deliver improved services," says David Tomljenovic, principal research director in the financial services industry practice at Info-Tech Research Group.
To remain competitive in the evolving banking industry, Info-Tech advises in the recently released resource that IT leaders for retail banks implement four key strategies, which are outlined below:
- Reassess the IT operating model to optimize resource allocation.
- Implement robust governance practices to ensure alignment with business priorities.
- Evolve core IT capabilities to meet the changing demands of the industry.
- Embrace business alignment approaches, such as DevOps and Agile, to enhance communication and enable IT to effectively achieve business goals.
Info-Tech's research highlights the significance of adopting a forward-looking approach in the banking business, especially in light of the existing retail bank offerings, services, procedures, and operational frameworks that were primarily established before the advent of the internet. Consequently, it is advised that retail banks synchronize their strategies with the emerging trends shaping the future of retail banking. These trends and the firm's associated recommendations include the following:
- Analytical Tools: Use NLP, ML, and AI to better understand customers' needs, intent, and emotional state and to deepen the brand connection.
- Branch Transformation: Address changing client needs to transform the role of the branch, build deeper relationships, and create a better client experience.
- Mergers & Acquisitions: Understand the economics of retail banking. Retail banking IT leaders need to become better acquainted with the economics of the business.
- Innovation: Approach innovation in unique ways. Factors such as size, maturity, type of customers, and products are among the top ways that innovation is being shaped.
- Shift Toward Advisory Services: Banks are evolving into trusted partners and advisors, recognizing that being the fastest, easiest, or most convenient transaction facilitator is insufficient to retain customers.
- Non-Bank/Embedded Finance: Understand and find solutions to overcome the threat from non-bank players who are aggressively innovating.
Digital business models operate on unique financial assumptions and cost structures. The firm suggests leveraging these technologies to ensure the profitability of low-/no-fee offerings and other innovative products and services.
Download the complete The Future of Retail Banking blueprint to enhance business growth and customer loyalty at retail banks.
For more information about Info-Tech Research Group or to access the latest research, visit infotech.com and connect via LinkedIn and Twitter.
Info-Tech Research Group is one of the world's leading information technology research and advisory firms, proudly serving over 30,000 IT professionals. The company produces unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely, and well-informed decisions. For 25 years, Info-Tech has partnered closely with IT teams to provide them with everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.
Media professionals can register for unrestricted access to research across IT, HR, and software and over 200 IT and industry analysts through the firm's Media Insiders program. To gain access, contact [email protected].
SOURCE Info-Tech Research Group
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