By W.B. King
A recent study published by Agent IQ found that more than 64.5% of credit union and bank respondents have increased respective technology spending in 2024.
“This underscores the industry’s commitment to harnessing advanced technologies like artificial intelligence (AI) and data analytics to enhance digital and in-person service integration,” the report stated.
The San Francisco-based Agent IQ was assisted in its findings by Worldwide Business Research (WBR) Insights and Future Branches. The latter will host its annual two-day conference in Austin, Texas December 4 -6, 2024. The gathering of industry insiders is designed to provide financial institution (FI) executives with actionable intelligence about existing physical spaces and how revamping in-branch technology, revitalizing frontline associates and reimagining branch processes can meet changing consumer needs.
The noted report, The Next Wave of Digital Transformation in Banking—How Banks and Credit Unions are Using Next-Generation Technologies to Empower Staff and Deliver Excellent Customer Experience, Both Online and in Person, surveyed 200 leaders from banks and credit unions with physical branches. Survey respondents were from credit unions (22%), regional banks (20%), global banks (19.5%), national banks (19.5%), and community banks (19%).
Personalization a Top Priority
Among report takeaways was that 77.5% of respondents said personalization will be an active priority over the next 12 months, while 75% said the same about fast and efficient services.
Eighty-two percent believe their customers or members are very satisfied with their mobile messaging services and 55% believe their customers or members are very satisfied with their co-browsing services. More than half (60.5%), however, believe their customers or members are not satisfied with their AI capabilities. And 54% said they can’t currently provide AI-enabled support for bankers or associates to reveal insights and automate tasks, but they are interested in this capability.
Fifty-eight percent of those surveyed said humans and AI handle customer or member interactions at equal levels, but 17% noted AI currently handles most of their customer or member interactions.
Where AI is going wrong:
Eighty percent of respondents said their systems have an inaccurate understanding of customer member inquiries.
Sixty percent said their AI systems can’t handle complex tasks.
Fifty-five percent said their AI systems have limited ability to provide personalized recommendations.
As a quickly evolving segment, and despite noted usability issues, AI investments are forecasted to increase.
“In an increasingly digital financial landscape, banks and credit unions are striving to elevate their digital banking experiences to meet evolving customer needs,” the report stated. “By addressing gaps in their capabilities, financial institutions aim to foster deeper customer relationships and enhance overall satisfaction.”
When asked what the top tech spending priorities were moving forward, respondents said personalization (77.5%) — adapting experiences based on individual needs, qualities, and/or preferences — and fast and efficient service (75%).
“The findings highlight a significant focus on enhancing personalization and service efficiency within digital banking environments. Leaders at banks and credit unions must leverage technology to meet the evolving expectations of customers,” the report continued. “Investing in advanced analytics and artificial intelligence can help institutions tailor customer experiences, while streamlined processes and robust digital infrastructures can improve service speed and reliability, ultimately driving customer satisfaction and loyalty.”
The report further stated that FIs must ensure seamless integration with all digital service channels, allowing for self-service options and streamlined access to live assistance.
“Most respondents claim customers are very satisfied with their mobile or SMS messaging (82%). In this context, mobile and SMS messaging refers to automated, compliant messages sent through established digital platforms and customer interfaces,” the report noted. “However, most respondents claim their customers and members are not satisfied with their video chat (49.5%) and AI capabilities (60.5%).”
Sustaining Trust
To ensure account holder trust is not broken as technologies advance, the report noted that 65% of respondents claim their current digital banking experience is only “somewhat effective” at supporting more meaningful and loyal customer or member relationships.
“Institutions must empower customers and members with the ability to contact an individual banker or associate directly, so they can rely on this individual for their financial needs and guidance,” the report continued. “This strategy is an effective means of supporting strong relationships with customers as it allows for people to build real relationships with members of the institution.”
These noted topics, among others, will be covered in December at the Future Branches conference. Registration and event information can be found here.