Capgemini-智能銀行少花錢(qián)多辦事-通過(guò)無(wú)摩擦、個(gè)性化的銀行業(yè)務(wù)實(shí)現(xiàn)效率飛躍

WorldReportSeries2024

RetailBanking

Intelligentbanksdomorewithless

Takeanefficiencyleapwithfrictionless,personalizedbanking

2

WorldRetailBankingReport2024

Contents

Foreword3

Executivesteeringcommittee

5

Executivesummary

6

Shiftingsands:banksprepareforturbulent

macroeconomicheadwinds

8

Bankstakealeapforwardinefficiencyand

customerexperiencewithgenerativeAI1

6

Pursueanenterprise-wideapproach

toscaleAIcapabilitiesandvalue3

4

Conclusion50

Methodology

5

1

PartnerwithCapgemini5

2

WorldRetailBankingReport2024

3

Foreword

Aswecelebratethe20thanniversaryofourWorldRetailBankingReport,it'sremarkabletoreflectonthejourneysinceitslaunchin2004.Thefirstdecadeofthereport,from

2004to2013,sawsignificanteventssuchastheadoptionoftheeurocurrency;the

introductionofSingleEuroPaymentsArea(SEPA)thatstandardizedcross-bordereurotransactionswithinEurope;theinfamous2008financialcrisis;andtheemergenceofthe"GreatRecession"followingtheendof"GreatModeration"intheUS.Additionally,blockchainmadeitsdebutin2009,whenSatoshiNakamoto,inventedBitcoinand

broughtblockchaintechnologytotheworld.In2010,theDodd-FrankActdefinedaseriesoffederalregulationstopreventfuturefinancialcrises.

Between2014and2023therewasatransformativeshiftinthebankingsector.The

PaymentServicesDirective2(PSD2)regulationwasreleasedbytheEUin2016.This

initiatedthetransitionfromproprietarydatatotheopenbankingera,empoweringtheriseofFinTechs.Digitaltransformation,whichwasalreadyinprogress,wasacceleratedbythe2020pandemic.Notably,thisperiodmarkedasignificantmovetowardsAPIandcloudtechnology,enhancingagilityandefficiencyforfinancialinstitutions.

Aswelookbackonthesetwodecades,ourWorldRetailBankingReporthasobserved,documented,andanalyzedtheretailbankingevolution.Ithasprovidedvaluableinsightsintothechallengesandopportunitiespresentedbycustomerbehaviorevolution,

economicshifts,andtechnologicaladvancements.

In2024,retailbanksworldwidefaceavolatileanduncertainlandscapemarkedby

inflationarypressure,potentialratecuts,decliningnetinterestincome,thereal

impactofnew-agebankstowardyoungerclients,andmajorgeopoliticaluncertainties.Navigatingthiscomplexterrainwillnotbeeasyandwillrequireintelligentsolutions

tohelpbanksmaintainprofitabilitywhiledeliveringsuperiorcustomerexperiencesthroughfrictionless,personalizedbanking.

Capgemini’sWorldRetailBankingReport2024explorestoday’schallengingbanking

environmentandlooksathowembracingAI-drivenstrategiescanoptimizeoperationalefficiencieswhileimprovingcustomerexperience.Thepotentialforenhancedcustomerengagementandincreasedrevenuegenerationopportunityisundeniable.Competitiveadvantageinthemarketplacewillfollow.

Our2024reportdemonstrateshowtheseamlessadoptionofgenerativeAI-powered

copilotscanaugmenthumanexpertiseandrevitalizeretailbanking.Italsooffersrecommendationsforarobustbottom-upstrategytohelpscaleintelligent

transformationforbanks.

Wehopetotakesomeoftheguessworkoutofthetransformativepotentialof

generativeAIandhelpbuildaroadmaponhowitcanempowerbankstonavigatetheuncertaintiesof2024andbeyond.Thepotentialbenefitsforbothbanksandcustomersaresignificant,pavingthewayforamoreinnovativeandcustomer-centricfutureof

retailbanking.

AnirbanBose

FinancialServicesStrategicBusinessUnitCEO

&GroupExecutiveBoardMember,Capgemini

KEYWORLDREPORTTHEMESKEYFINANCIALSERVICESEVENTS(k)1

237

1.6

2016/17

2018/19

224

15.4

?FinTechdisruption

accelerates:PayPal,

Square,Stripedominategrowthinonlineand

in-storepayments

withouttraditional

banks

?Bank/FinTech

collaborationincreases

?EU:Brexit-UKleavesEU

?EU:RevisedPSD2

o?ciallylaunchedin2018

?EU:GDPRimposesstrictrulesonbanksand

companieshandlingconsumerdata

?APIscriticaltodigitallyconnectedecosystems

?EraofFinTech

partnershipsandopenbanking

?SmartBank/FinTechcollaborationintheOpenXera

?

?

?

?

?

?

?

?

2004/052006/07

2020/212022/24

2012/132014/15

2008/092010/11

281277

244

271

211

158

244

272

New-agebankcustomers(millions)2

67.3

~161.0

Facebooklaunchesin2004,theiPhonein2007

EU:Theeurogains

acceptanceacross

12EuropeancountriesUS:EndoftheGreatModerationEra

(mid-1980s—2008)oflowin?ationand

economicgrowth:

housingpricespeaktriggeringsubprimemortgagecrisis

?

?

?

?

Bitcoinlaunched

EU:SEPA(SingleEuroPaymentsArea)

launched

EU:Sovereigndebt

crisis.ConcernsaboutEurozonestability

US:TheGreat

RecessiontriggeredbyLehmanBrothersbankruptcy

?GDPdownby4.3%

?Unemployment

doublestoover10%

US:Dodd-FrankAct

enactedtoavoid

future?nancialcrises

Covid-19forcesahalttoglobalactivities

CBDCpilotsacross

theglobetomeasurefeasibility/

implications

ChatGPTdebuts

Q42022

US:JPMorganChaselaunchesJPMCoin

forinstantsettlement

Bitcoin'srecordsurgesparksinterestand

debateaboutitsimpactonbanking

FinTechsemergeto

challengeincumbents:Revolut,Chime,Monzo,StarlingBank,etc.

EU:Firstopenbankingregulationsintroducedin2015

US:ApplePaygainsscaleinmobile

payments

?

?

?

?

?

Fromproductcentricitytorelationshipbankingascompetitionfor

customerwallets

intensi?es

Targetmass-a?uentcustomerstoboost

walletshare

Multichannel

engagementwith

focusononline

Branchesneedto

evolvefrom

transactionalservicestoadvisorysales

?

Backtobasicsamidglobalcrisis:

preservingcore

functionsessentialforsustainingclient

relationships

StrengthenSME

business

Enhancecustomer

experiencewithfocus

oncustomer

demographics,

regionalnorms,andchannelpreferences

?

Customersreportpoorexperienceswithbanks?Buildloyaltythroughcustomerexperience

Mobilebanking:thenewengagement

channel

BankingNPS

deterioratessignalingachangeincustomer

expectations

CXandpro?tability

a?ectedbyyearsoflimitedinvestmentsinback-endoperations

Composable

platformsenable

agilescalabilityandOpenXpartnershipsTimeforembedded?nancethrough

Banking-as-a-ServiceCMOsbecome

customerstrategiststhroughdata-driveninsights

AIandGenAIcan

unlockcapabilitiesforautonomousand

intelligentbanking

?

?

?

?

?

4

WorldRetailBankingReport2024

TheWorldRetailBankingReportSeries

Capturing21stcenturyretailbankingevolution

?

?

?

?

?

?

?

Note:Branchandnew-agebankcustomernumbersrepresenttotalsforalternateyearsstartingfrom2004and2016,respectively.

1Across14keymarkets:Australia,Brazil,Canada,France,Germany,HongKong,Netherlands,Portugal,Singapore,Spain,Sweden,UAE,UK,andUS2New-ageplayersconsidered:Chime,Monzo,N26,Nubank,Revolut,StarlingBank

WorldRetailBankingReport2024

5

Executivesteering

committee

TheExecutiveSteeringCommitteeparticipantsforourWorldRetailBankingReport2024

includedtopexecutivesfromleadingbanksandindustrypartners.Wearegratefulfortheirtime,experience,andvisionastheyhelpedguideourreport’scontent.

Banks

PierreRuhlmann

COO,RetailBanking

BNPParibas

SwetaMehra

MD,EverydayBanking

ANZ

ArunMehta

HeadofDataAnalyticsandAI

FirstAbuDhabiBank(FAB)

StevenCooper

CEO

Aldermorebank

VincentKolijn

HeadofStrategyand

Transformation,RetailBank

Rabobank

RafaelCavalcanti

HeadofData,Analytics,andAI

BancoBradesco

Technologyandbusinesspartners

FrédéricTardy

GeneralManager,FSI

Microsoft

GregJacobi

VP&GM,BankingandLending

Salesforce

CormacFlanagan

GlobalHeadofProduct

Management

Temenos

GurbhejDhillon

CTO

Flutterwave

6

WorldRetailBankingReport2024

Executivesummary

Shiftingsands:banksprepareforturbulentmacroeconomicheadwinds

Theyear2023showcasedstrongglobalbankperformance,markedbysubstantialrevenuegrowthandimprovednet

profitmargins.Highinterestrates,lowcreditdefaults,androbustconsumerspendingwerearecipeforsuccess.

However,asbankstransitioninto

2024,theyfaceavolatileanduncertain

landscapecharacterizedbypersistent

inflationarypressures,potentialratecuts,

decliningnetinterestincome,

andgeopoliticaluncertainties.

Thepersistingcost-of-livingcrisishas

impactedthefinancialwell-beingof

customers.Financialstresstriggereda

customerspendingacontraction,evidentinfallingdemandforcreditandbank

depositoutflowsacrosskeymarketsin

Europe,AsiaPacific,andNorthAmerica.Inresponse,banksseektoidentify

andengagewithprofitablecustomer

segments,whichrequiresapersonalizedapproach.Whilebanksstruggleto

deliveradequatedigitalexperience

andmobilebanking,new-agebanksaregainingground,especiallywiththeyouthsegment.

Asbanksanticipateachallenging2024,

includingrisingfundingcostsandreducedlendingvolumes,theyarereassessing

theircostbase.Reassessmentinvolvesclosingunprofitablebusinesslinesandexitingnon-coremarkets;streamliningoperationsthroughworkforce

optimizationisalsohighonthebanks’agenda.

Atthesametime,bankswillhaveto

acceleratetheirdigitaltransformation,leveragingthepowerofgenerativeAIatscale.Asatestamenttotheneed

todigitalizeanddespiterequiredcostdiscipline,70%ofbankCXOsplan

toincreasedigitaltransformation

investmentsbyupto10%in2024.

Bankstakealeapforward

inefficiencyandcustomer

experiencewithgenerativeAI

GenerativeAI'simpactondemocratizingartificialintelligencehasbeenprofound.The2024WorldRetailBankingReport

surveyofbankCXOsfoundthat80%ofbankexecutivesbelievegenerativeAI

representsasignificantleapinadvancingAItechnology.Asapplicationsmultiply,scalablebenefitswillrequirebalancingcustomerexperienceenhancements

andoptimizingoperationalefficiency.

Oursurveyofbankemployeesindicatestheyfocusnearly70%oftheirtimeon

operationalactivities,leavingonly30%forcustomerinteractions.Bankscan

strikeanew,moreresults-drivenbalancebyunlockingthefullpotentialofAIandgenerativeAIacrossdiverseusecases.

Threepivotalprocessesemergeasprimecandidatesforintelligenttransformation:

?Workforceproductivitytoolsthroughcopilots

?Documentgathering,processing,andvalidating

?Callcentercustomercentricityandefficiency.

80%

ofbankexecutivesbelievegenerativeAIrepresentsa

significantleapinadvancingAItechnology.

Thetimehascometogobackto

thebasics,focusingonproductivity,

expandingthecustomerbase,retaining

profitablesegments,andincreasing

diversificationintonon-interestincome.

WorldRetailBankingReport2024

7

Pursueanenterprise-

wideapproachtoscaleAIcapabilitiesandvalue

Only4%ofsurveyedbankarereadyto

takeadvantageofgenerativeAI-driven

intelligenttransformation.ToadoptAIatscale,abottom-upstrategyencompassingthreeenablinglayersisnecessary:

?First,developamoderndataestate.

Establisharobustinfrastructurefor

enterprise-widedatamanagementto

serveasthefoundationalframeworkforhandlingdiversedatasetsefficiently.

?Then,leverageadvanceddata

processing.Harnessthepotentialofdatabyimplementingarobustmodellayerequippedwithlargelanguagemodels(LLMs)andsophisticated

algorithms.Thisintegrationfacilitatestheconversionofrawdataintoactionable

insights,translatingtheseinsightsintotangibleimpacts.

?Finally,implementguardrailsand

frameworks.Setupcomprehensive

guardrailsandframeworksalignedwithbusinessprioritiesandpractices.This

responsibleapproachdemonstratestheROIofAIandgenerativeAIinitiatives

andensuresethicalandaccountableAIdeploymentandmaintenance.

8

Shiftingsands:banksprepareforturbulentmacroeconomic

headwinds

WorldRetailBankingReport2024

9

Muchof2023wasmarkedbyrobustglobalbank

performance,withsignificantrevenuegrowthandlong-awaitedimprovementinnetprofitmargins.Highinterestrates,lowcreditdefaultsfueledbypost-COVIDpublic

funding,andresilienteconomicconditionswereall

catalystsforexceptionalresultsin2022-2023intheretailbankingsector.

FollowingtheunparalleledprofitabilityofEuropean

banksin2023,theimpendingpeakininterestrates

hintsataplateauinearningsfor2024.European

financialinstitutionsmightcontendwitha4-5%

downturninearnings-per-sharethroughout2024–

2025.1Simultaneously,thesebanksmaygrapplewithadeteriorationinassetquality,attributedtoweaker

growth,sustainedinflation,andheightenedborrowingcosts.2AcrosstheAtlantic,USbanksarebracingforadipininterestincome.Theconvergenceofdepositbetaswithelevatedinterestrates,coupledwithfactors

likesluggishloangrowthandpotentiallystringentcapitalrequirements,posesadditionalchallengestobusinessvolumes.3

The250bankingCXOssurveyedintheWorldRetail

BankingReport2024rankedthehighcostofcapital,

adeclineindepositvolumes,risingprovisionsfornon-

performingloans,fallinglendingvolumes,andincreasingcost-to-incomeratiosastheirtopconcerns.BankCXOsin2024willbenavigatingananxiety-inducingtriadof

cost,competition,andcustomerchurn.

Asfinancialstressmounts,customerspendingcontracts

AspartoftheWorldRetailBankingReport2024

surveyof4,500customersacross14markets,72%of

participantssaidinflationhadamoderatetohighimpactontheirfinancialwell-being,while16%saiditdrove

themtopaycheck-to-paycheckliving.Theresult?Weareobservingearlysignsoffallingdemandforcreditandanoutflowofbankdepositsasconsumersdepletedsavingsaccumulatedduringthepandemic.

ThistrendwasmostnoticeableintheUnitedStates,

wherehouseholdsavingsasapercentageofdisposableincomedroppedtonearly4%inOctober2023as

comparedtoapproximately13%in2020-2021andaround6%from2015to2019.4

10

WorldRetailBankingReport2024

Ascustomersexhaustedtheirsavings,

revolvingcredit–notablycreditcarddebt–surgedtoahistorichigh.InNovember

2023,UScreditcarddebtpeakedatUSD1.08trillion.Bloombergreportedariseincreditcarddelinquencies,surpassingpre-2020levels,followedbyhistoricpandemiclows.5Additionally,non-revolvingcreditintheUnitedStates,encompassingstudentandautoloans,declinedapproximately

10%fromOctober2022toOctober2023.Demandformortgagelendingsimilarlydipped.6

AcrossEurope,theaveragesavings

ratiostoodat12.6%ofdisposable

incomebetween2012and2019.Amidthepandemic,thisratiosurgedtoan

unprecedented25.4%inQ22021.Yet,by2023,adownwardtrendemerged,steadilypullingthesavingsratioto

thepre-pandemicaverage.7Inparallel,Europeanbankssignificantlytightenedcreditstandardsforconsumerloans,

particularlyhomeloans,becauseof

heightenedriskperceptionandlow-

risktolerancepromptedbythehigh

costofcapital,decliningcustomer

creditworthiness,andanuncertain

economicoutlook.TheEuropean

CommissionforecastedthatGDP

growthinEuropeandtheeuroarea

wouldreachameager0.6%in2023

duetosubduedeconomicactivity.TheEuropeanCommissionanticipates1.2%to1.3%GDPgrowthin2024.8

AsiaPacificmarketssuchasSingaporeandAustraliamirroredthetrend.

Australia’spersistentcost-of-livingcrunchledtoheavyrelianceonunsecuredcredit,keepingcreditcarddebtelevated.Late

delinquencyratesforcardsinAustraliareachedtheirhighestpointsince2021,withthenumberofaccounts90+dayspastdueup19%year-over-year(YoY).Demandformortgagesandautoloans

dippednearly5%YoYfromSeptember

2022to2023.9Similarly,callsfor

securedcredit,includinghomeandauto

loans,areanticipatedtoremainsubdued

inSingapore.10

Decliningbankdepositsandmuted

creditdemandaresubstantialchallenges.

Despitetheattractivenessofhigh

interestratestocustomers,bankshave

beenslowtopassonthebenefitto

depositors,sparkingtheirredirection

ofcashtolucrativetermaccountsand

money-marketinstruments.IntheUnited

States,totalbankdepositsdeclined4.8%

YoYbyJune30,2023,forthefirsttime

since1994.11

Inaddition,concernoverthestabilityof

smallregionalbankspromptedashiftof

depositstolargerfinancialinstitutions.

Spookedbybankfailures,customers

begandrainingtheiraccountsfrom

regionalandcommunitybanksand

creditunions.

Morethanhalfoftherespondentsto

ourcustomersurveyindicatedplansto

diversifytheirdepositsacrossmultiple

bankstomitigatepotentiallossesina

bankfailure.Bankssignificantlyincreased

interestpayoutstoretainthesedeposits,

resultinginescalatedinterestexpenses

andadeclineinnetinterestmargins.

Someregionalbanksresortedtohigh-

costbrokeredcashdeposits(CDs)to

supplementorganicdepositgrowth,

leadingtoelevateddepositcosts.Facing

thebalanceoffinancialstabilityand

customertrustamidashiftingbanking

landscape,otherregionalfirms,suchas

PacWestBancorp,turnedtostrategic

assetsalestoshoreupfunds.12For

instance,PacWestBancorpsolditsUSD

3.5billionloanportfoliotoanasset

managementfirminJune2023to

strengthenitsbalancesheet.13

HIGH

HIGH

Potentialpro?tability

Degreeofpersonalization

LOW

LOW

WorldRetailBankingReport2024

11

Currentcustomerprofitabilityneedscarefulmanagement

Givenrecenteconomicvolatility,

identifyingpotentiallyprofitable

customersegmentsisessentialbutposeschallenges.Eachsegmentischaracterizedbydifferingprofitabilityandloyalty

levels,leavingbankswithanunwieldy

customerlandscape(figure1).Considerthefollowingcustomerframeworkwhichdefinesfourkeycustomersegmentsandtheirpotentialimpactonbottomlines:

?Butterflies:Representing22%of

customers,butterfliesexhibitpotentialprofitabilitybutlackconsistentloyalty.Theyfrequentlyswitchbanksinpursuitofbetteroffersandexperiences.

?Truefriends:Comprising37%of

customers,thisgroupdemonstrateshigh

loyaltytoandprofitabilityfortheir

primarybank.Theyactivelyengagewithaprimarybank,usingmultipleproductsandservices.Ongoingpatronageand

positivereferralsmakethempivotaltobankgrowth.

?Barnacles:Theselong-termcustomersstickwiththebankovertime,taking

advantageofbasicservicesorlow-profitproductslikecheckingaccountsand

debitcards.Despiteloyalty,their

revenueimpactismarginal.Around20%ofcustomersfallintothiscategory.

?Strangers:Makingupabout21%,thesenewly-acquiredcustomersinteractwiththebankonlysporadically.Theyexploreproductsandservicesbutrarelyengage.Strangerscanpotentiallytransitionintobutterflies,truefriends,orbarnacles.

Figure1.Customersegmentsrequiredi?erentstrategiestoboostpro?tability

Bankcustomersarenotequallypro?table…

customersare

BUTTERFLIES

?Banksareunabletorealizerelationshipvalue

?Maintainasecondarybankaccount

STRANGERS

?Newlyacquired

customersexploringthebank’so?erings

?Unclearpro?tability

?Maintainasecondarybankaccount

LOWProjectedloyaltyHIGH

Sources:CapgeminiResearchInstituteforFinancialServicesAnalysis,2024;WorldRetailBankingReport2024

CXOsurvey,N=250.

TheframeworkisfromWernerReinartzandV.Kumar’sarticle,“TheMismanagementofCustomerLoyalty;”recalibratedforretailbankingcustomersbasedonthebankingCXOsurvey.

…buttailoredsegmentapproachescanimproveoverallvaluepotential

TRUEFRIENDS

?Nurturetherelationships,driving

cross-andup-sellingwith

contextualizedo?erings,preferredpricing(exclusivediscounts),and

rewardstoboostclientlifetimevalue

BUTTERFLIES

?Communicatevalue,personalizeproductsandservicestoimprovecustomerjourneys

?Deliverfrictionlessandconsistentservice,reinforcingtrustandimprovingengagementacrosschannels

BARNACLES

?Optimizecostofservicebydrivingthesegmenttodigitalchannelswithself-serviceoptions

customersare

TRUEFRIENDS

?Consideredbrandambassadors

?Contributeupto150%ofpro?ts

?Considerthe?rmtobetheirprimarybank

customersare

?Erodeupto50%ofpro?ts

?Maintainaminimumbalance

?Maintainasecondarybankaccount

20%BARNACLES

21%STRANGERS

customersare

37%

22%

12

WorldRetailBankingReport2024

OurCXOsurveyof250bankexecutives

across14marketsrevealedthatthechurnrateofnewlyacquiredcustomerswas

5–10%formorethanhalfofthebankssurveyed,with24%reporting15–20%

customerchurn.Incontrast,forthetruefriendssegment,42%ofbanksnoted

a0–5%rate,with36%reportinginthe6–10%range.

Bystrategicallyallocatingresources

andtailoringmarketingefforts,banks

canoptimizeprofitpotentialforeach

customersegmentanddriveretention

asappropriate(figure1).Proactive

movesarecrucialnowastheshareof

unprofitablecustomersispoisedto

increase,especiallyifthecurrentcost-of-livingcrunchisprolongedintothefuture.

Buildinganew,future-focused

customerpipelineisessential

Generallyspeaking,today’sbankcustomerprofileskewsolder,whichportendsa

sparsecredit-demandpipelineintheyearsahead.Oldercustomersoftencorrelate

withdepositsbecausematureindividualscontrolrelativelyhigherwealth,own

propertyandsavings,andhavelessneedtoborrow.

ExecutiveswhoparticipatedinourCXO

surveysaidGenZindividuals,aged18–26years,accountforonly21%oftheirbank’stotalcustomerbase;moreover,only9%ofbankexecutivesprioritizetargetingand

acquiringGenZcustomers.

Duringinterviews,bankingexecutives

toldustheyaimtoprioritizecustomerswhocanswiftlycontributetothe

bank’seconomicmargin.Withina

fiercelycompetitivemarket,investinginyoungerdemographicsentailspotentialrisks.Shouldbanksaimtotargetthis

segment,theapproachlargelyinvolvesopen,collaborative,andwhite-label

partnershipswithGenZ-relatedbrands,ratherthanmakingdirectinvestmentsintheGenZsegment.

GenZisexpandingandbecomingmoreinfluential.Intheworkforce,theywillsoonsupersedebabyboomersaged60to78(in2024).14GenZbankinghabits,preferences,andexpectationsfor

personalizationdiffersignificantlyfrompreviousgenerations.Therefore,banksseekingayouthfulbusinesspipelinewilladaptservicesaccordingly.Thekeyis

capturingGenZcustomersearlyintheirfinancialjourney,whichrequiresarobusttechnologyanddatafoundation.Whilebanksarelagging,new-agepayersare

increasinglyenticingtheGenZsegmenttobuilduptheircustomerbase.

InItaly,MiloGusmeroli,DeputyGeneralManageratBancaPopolarediSondrio,

said,“Prioritizingtheyoungergenerationispivotalastheyshapethefuture

ofbanking.Ourapproachisn’tjust

theoretical;it’spragmatic.WeanticipateGenZ’sembraceofdigitalplatformsandphysicalbranches,andourfocusextendsbeyondpricewarsorunsustainable

services.”HeaddedthatBancaPopolarediSondrioappealsdirectlytoGenZviauniqueproductsandapproachesbeyondnumbers-drivenstrategies.

Theshifttodigitalchannelshelpskeepnew-ageplayerscompetitive

Thedisparitybetweenin-branchbankinganddigitalchannels(suchasmobileappsandwebsites)continuestowiden.Of

thebankcustomerswesurveyed,23%

saidtheyprefervisitingbranchesfor

mosttransactions,yettheyaregraduallytransitioningtodigitalchannelslike

mobileapps.Conversely,only16%choosetoconductalltransactionsatbranches

andconsiderdigitalchannelslesscritical.

?37%ofcustomerstoldustheyusedigital

channelstointeractwiththeirbanksandaregraduallydecreasingrelianceon

in-branchservices.

?24%saytheyhaveshiftedentirelyto

digitalchannels,renderingphysical

branchesredundantinkeygeographies.

Despitetheincreasingdigitalshift,

onlineplatformshavedeliveredrelativelylacklustercustomerexperience(CX).

Amongcustomerssurveyed,59%ratedtheirmobilebankingappexperienceasaverage,withonly35%expressinghighsatisfaction.

59%

ofbanking

customersratedtheirmobile

bankingapp

experienceas

onlyaverage.

WorldRetailBankingReport2024

13

Thediscrepancyinexperienceis

particularlynoticeablebetween

transactionalandadvanced

functionalities.Forinstance,whenusingadvancedfeatures–financemanagementtoolssuchasbudgeting,advisory,or

rewards–morethan60%ofcustomers

ratedtheirexperienceas“average”.Yet,almosthalfexpressed“delight”with

transactionalfeatures,suchasmoney

transfers.So,canconclusionsbedrawn

thatbankshaveworktodowhenit

comestomakingadvancedfeaturesmoreintuitiveorconvenient?

Asincumbentbanksstrivetoadapt

toevolvingdigitalexperiences,

challengersgaintractionandbuild

momentum.Nearly87%ofsurveyed

incumbentbankCXOsconsiderednew-ageplayerstheirleadingcompetitors.

Despitesignificantlylessventurecapitalfunding,36new-agebanksentered

themarketas34exited,resultingin1%overallgrowthfromJanuary2022to

July2023,accordingtoanOctober2023reportfromglobalconsultancySimon-Kucher.15Whilethepaceofnewentrieshasdecelerated,growthindicators

remainrobust:

?New-ageplayersexpandedcustomer

reachby30%,surpassingtheonebillionmarkinthe18monthsendingJuly

2023.16Asonespecificexample,inSpainRevolut,aLondon-basedglobal

challenger,outpacedincumbents

SantanderandCaixaBankincustomeracquisitionin2023,securing12.8%ofcustomerscomparedwith12.6%forSantanderand9.3%forCaixaBank.17

?Simon-Kucherreportsthatnew-ageplayersareachievingtop-linegrowthwhileexpandingcustomerreach,withrevenuesupnearly43%withinayearandahalf.18Forinstance,Revolutis

expectedtonearlydoubleitsrevenuegrowth