As institutions aim to stay competitive, profitable and relevant, the strategic utilization of technology and customer-focused initiatives is paramount. Bankers are eyeing a few priorities to boost digital customer engagement in 2024:
Most institutions prioritize enhancing customer identity verification processes, recognizing its dual role in streamlining digital account opening while fortifying cybersecurity and risk management.
A close second, the focus on data and analytics underscores the importance of informed decision-making. Banks are intensifying their data use to inform strategic investments, a crucial aspect in understanding customer behavior and preferences. Moreover, providing customers with easily digestible, actionable insight is vital for helping them make well-informed decisions about their cash position.
With a growing preference toward customer-centric banking, tailoring customer experiences and marketing efforts is a strategic necessity. The emphasis on personalization aims to create a unique and satisfying experience that resonates with customers, fostering brand loyalty and trust.
While the top three priorities stand out, the survey also reveals other areas of focus trailing closely behind:
Expanding Self-Service Capabilities
Improving and Modernizing Website Design
Account Opening and Onboarding
Educational Programs and Communication
Many of these engagement priorities are interconnected as part of an overall digital engagement strategy. Although account opening and onboarding were seen less as an engagement strategy, expanding self-service capabilities and strengthening customer identity verification align with the ongoing emphasis on digital account opening and reassure customers about an institution’s cybersecurity readiness. Meanwhile, a heightened use of data and analytics is also the bedrock for personalized customer experiences and targeted marketing.
Understanding that customer engagement is vital for retention, this year’s survey reflects wide-ranging tactics to maintain customer “stickiness.” These methods to enhance digital engagement work well in tandem with other investment areas like digital lending, peer-to-peer (P2P) payments and wealth management services.
Industry experts caution institutions not to overlook the significance of educational programs and communication, even if the practice has previously had mixed results. In the face of increasing economic headwinds and fraud, these initiatives become crucial in making customers aware and protecting both the consumer’s and the institution’s assets.
In furthering financial wellness, prioritizing education and communication also help solidify community financial institutions as financial advisors. And finally, education and communication encourage the understanding and use of new products. Education can be made available in person, via digital banking and email campaigns or through resources like an institution’s blog and social media channels.
