Over the last decade there’s been a significant decline in branch banking. In the past four years, Bank of America, Chase, and Wells Fargo have cut more than 15% of their branches, bringing their branch levels back to that of the early 1980s. Why? The change in customer behavior. With digital and mobile banking, customers don’t need to visit a branch for most of their banking activities. This leads us to an interesting question: what will banking look like in 2020?
The growth and innovation in technology is expected to continue to influence digital banking. The road to be a leading bank in 2020 starts in 2017 with a greater emphasis and shift to customer experience. Banks need to evaluate their customer journeys and remove any friction associated with those journeys. This evaluation has to go beyond existing customer journeys and include processes such as opening new accounts, requiring signature cards, applying and going through a home mortgage process, etc. with the least amount of friction.
From a technology standpoint, recent developments in chatbots and AI can help remove friction while improving customer experience. Steven Freiberg, currently a board member of MasterCard and senior advisor to Boston Consulting Group, and formerly Co-Chairman & CEO Citigroup’s Global Consumer Group and CEO of ETrade, states that “change in customer behavior has called for banking transformation and banks are investing in big data and advanced analytics to drive competitive advantage”. Freiberg also believes that Robo-advisory, Robotic Process Automation, and Artificial Intelligence will drive banks over the next few years and put them well on their way to a new banking world in 2020.
To learn more about banks on how they can gear up for the future, join Steven Freiberg and 7.ai in a webinar on Jan 26, 2017. The webinar will discuss:
- What key trends banks need to look at today to prepare themselves for the future.
- How payments, digital loans, and gamification impact customer engagement.
- How chatbots, AI, big data, and prediction can be applied to digital banking.