Top 10 Banking Trends Shaping 2024

Customer Relationship Management (CRM) is undergoing a profound transformation in the ever-evolving landscape of banking. As we delve into the second quarter of the 21st century, ten prominent banking trends are reshaping the way banks interact with customers and manage their operations. From the integration of Generative AI to the emphasis on sustainable banking, each trend plays a pivotal role in defining the future of banking CRM.

1. Generative AI Super-powers Workforces

Generative AI is revolutionizing banking, transforming workforce dynamics by upskilling 60% to proficiently manage and extract insights from the 2X increase in unstructured data. Combining the strength of AI in predicting loan defaults, it enhances customer onboarding with synthetic loan default scenarios, ensuring a nuanced creditworthiness assessment. This fosters inclusivity, capturing individuals overlooked by traditional credit scoring models. The streamlined application process ensures equity for customers, while banks use generative AI insights to support portfolio stability and mitigate default risks.

2. Banking-as-a-Service

Banking-as-a-Service (BaaS) emerges as a crucial strategy for banks in the evolving financial landscape. Despite concerns about client relationships, the ascent of embedded finance propels banks towards BaaS, making it as essential as online or mobile banking. To thrive, banks must differentiate based on products, rates, and reach, considering trends like integrated experiences, fintech collaborations, and changing trust levels. Leading banks leverage BaaS to revolutionize the onboarding journey, utilizing open banking APIs for secure account linking and automated data aggregation. This streamlined process enhances advisor efficiency, fosters trust, and provides clients with a seamless, insightful experience.

3. Digital Journeys: Intelligent, Adaptive, and Synergetic

Banking digital journeys are undergoing a transformative shift towards intelligent, adaptive, and synergetic experiences. Streamlining customer experiences is pivotal for building trust, necessitating the dismantling of silos, improved visibility, and collaborative efforts. A prominent bank’s adoption of instant digital account opening via an advanced CRM platform exemplifies the power of technology. With AI-driven features, customers effortlessly commence account opening, ensuring swift and compliant onboarding, resulting in a substantial surge in account open rates—highlighting technology’s potential in reshaping traditional banking norms.

4. Sustainable Banking (Green Initiatives)

Sustainable banking is gaining traction in MENA, as 45% of banks adopt green initiatives, aligning investments with environmental and social factors. Many adhere to global standards like ICMA’s Green Bond Principles, showcasing a commitment to responsible banking. Over half of the surveyed banks now offer sustainable finance, particularly in green and hybrid vehicle loans, indicating substantial growth potential. With only 25% adopting sustainable finance targets, there’s room for expansion, fostering the development of ESG-aligned products and robust marketing strategies. Dubai Islamic Bank (DIB) serves as a notable example, showcasing how banks can lead the way in creating a sustainable and environmentally responsible business environment.

5. Providing ‘Distress to Delight’ Experiences

Modern banking prioritizes converting traditional distress points into delightful experiences—real-time alerts preventing missed payments, AI-driven chatbots streamlining paperwork, and engaging loan applications—instilling a sense of accomplishment. Banking CRM plays a pivotal role by analyzing customer data to predict and address potential issues, turning friction into satisfaction. For instance, a lost credit card becomes an opportunity for delight—AI and location tracking swiftly identify issues, enabling prompt action like freezing the card. Instant notifications, 24/7 support, and personalized touches elevate the customer journey into one of satisfaction and pleasure, demonstrating the industry’s shift from distress to delight.

6. Customer Behavior in Spotlight

Today’s financial services transcend mere transactions, emphasizing personalized engagement with individual financial stories. Customer behavior is now at the forefront. Generic offerings are obsolete; advanced analytics within CRMs meticulously analyze purchasing trends, product interactions, and cross-platform preferences, constructing a detailed client journey. This nuanced comprehension drives hyper-personalized suggestions, proactive assistance, and tailored products anticipating future requirements. It signifies a shift from data management to fostering meaningful connections, elevating customers from data points to valued partners with unique financial targets.

7. Composability Bringing in Flexibility

The trend towards composability is revolutionizing the banking industry by infusing flexibility into banking platforms. A truly composable system transcends environmental constraints, employing an API architecture that simplifies deployment and fosters a thriving developer ecosystem. The composable banking platform thrives on openness, adaptability, and scalability, fueled by innovative module extensions and contributions from developers.

8. No-Code is No More an Echo

Choosing a CRM provider with low-code/no-code tools empowers banks to effortlessly build processes, enhancing agility. In a dynamic regulatory landscape, these tools prove indispensable for efficient process management. Embracing out-of-the-box capabilities lays the foundation for innovation, enabling rapid market adaptation through low-code/no-code tools. In loan processing, real-time data validation ensures accuracy, while no-code features facilitate the seamless application of risk rating models, expediting informed decisions. Automatic computation of financial ratios and visual reports accelerates the process, enabling confident loan application approval or denial. This transformative shift accelerates decision-making, empowers users, and enhances risk management capabilities.

9. CRM Dwells Total Experience

Digitalization has become a focal point, with 69% of business leaders acknowledging the acceleration of digital initiatives. Crafting a comprehensive, 360-degree view of the customer involves integrating solutions that enhance both employee and customer experiences. Establishing a total experience framework and connecting the dots between employee and customer interactions is crucial for disseminating relevant information seamlessly across all distribution channels. As businesses plan their digitization efforts, total experience emerges as a key consideration, potentially providing a competitive edge and setting a new norm in the industry.

10. Real-time Resolutions and Fulfillment

Real-time resolutions and fulfillment, AI-driven chatbots, omnichannel tools, and robotic process automation, redefine the CRM landscape. This paradigm shift is enhancing customer satisfaction, boosting sales, and streamlining operational costs, setting real-time capabilities as the Banking CRM success standard. For instance, a lost debit card reported via online chat triggers an AI-powered CRM, instantly guiding reps through actions like card blocking and replacement, addressing fraud. Proactive communication and personalized resolutions ensure customer confidence, with feedback capture and scheduled follow-ups for complete satisfaction.

In conclusion, the future of Banking CRM is characterized by a convergence of technological advancements, customer-centric strategies, and a commitment to sustainable and responsible banking practices. As banks navigate this transformative landscape, embracing these trends will be key to staying ahead in a rapidly changing industry.