Deposit growth has emerged as a top priority for financial institutions. A recent survey revealed that 4 out of 5 bankers have identified deposit growth as a primary concern, highlighting the urgency for banks to optimize their deposit processes.
However, they’re faced with challenges. With customers increasingly shifting their funds to high-yield accounts and the rise of fintech companies offering digital banking solutions, traditional banks are under pressure to adapt their strategies to meet evolving customer expectations. As a result, banks are turning to advanced technologies like artificial intelligence (AI) to streamline workflows and identify new deposit opportunities.
In this blog post, we’ll explore the role of AI in deposit growth, examining how it enables banks to navigate these challenges and capitalize on emerging opportunities. We’ll also discuss the importance of human intervention in maintaining customer trust and enhancing the overall banking experience, highlighting the need for a balanced approach that leverages both technology and human expertise.
Challenges faced by banks in optimizing deposit processes
People are moving their money away from commercial banks in favor of high-yield accounts. Of bank customers surveyed, 29% said they moved deposits away from their primary banking institution in the past 90 days.
Adding to this challenge is the increasing competition. Fintech companies (digital-only banks) are changing the game, offering digital service offerings modern customers want. The Fintech sector is expected to reach $1.5 trillion in annual revenue by 2030, making up nearly a quarter of global banking values.
In response, banks are reevaluating their strategies. They need to bring their technology up to speed to meet rising customer expectations, while maintaining the human guidance that their very foundation was laid upon. Striking this balance will be key to deposit growth.
The role of AI in deposit growth
An AI-enabled customer experience has been proven to yield significant benefits:
- 10% boost in revenue
- 20% increase in customer satisfaction
- 60% reduced effort in audience selection
- 13% decrease in operational costs
Within the banking sector, AI serves as a vital catalyst for deposit growth. By simplifying deposit workflows and identifying lucrative opportunities, AI enables banks to streamline processes and capitalize on valuable prospects.
Streamlining deposit workflows
AI is transforming how deposit workflows are managed. AI systems use advanced algorithms to analyze data quickly and accurately, automating tasks like transaction processing and fraud detection.
By identifying patterns, trends, and anomalies in deposit transactions, AI enables banks to detect potential issues early on, mitigating risks and ensuring regulatory compliance while delivering a seamless customer experience.
Identifying deposit opportunities
AI-powered data analytics also help banks identify deposit opportunities that may otherwise go unnoticed. By analyzing customer behavior, financial trends, and market dynamics, AI algorithms can pinpoint potential depositors, assess their preferences and needs, and tailor personalized offerings to attract and retain them.
And through predictive analytics and customer segmentation, banks can target specific demographic groups with tailored marketing campaigns, incentivizing deposit acquisition and fostering long-term customer relationships.
The importance of human intervention
While AI undoubtedly plays a significant role in streamlining deposit workflows and identifying opportunities, human intervention remains crucial for fostering trust and rapport with customers.
Despite advancements in technology, customers still value personalized interactions and human touchpoints, especially when it comes to financial matters like depositing funds.
Humans possess the empathy and understanding needed to address customer concerns, answer complex queries, and provide tailored advice based on individual circumstances.
Human intervention also adds a layer of accountability and reassurance, particularly in situations requiring delicate decision-making or resolving issues that AI algorithms may struggle to handle effectively.
Balancing AI and human guidance
AI and analytics can give us context. But they can’t be human. Using the insights and context they provide, banks can connect their people to their customers and prospects at the right moments. And arm them with the right information. This provides a better experience for both the customer and the banking associate.
Today’s top banks are driving customer loyalty by personalizing digital banking experiences. Making a large deposit or opening a new account can be stressful, and it’s a key opportunity for human intervention. Customers often wonder if they did it right, or if their money just disappeared.
Through Guided CX, a friendly financial expert can serve as a trusted advisor, easing their anxieties and helping them feel good about their financial decisions.
The results speak for themselves:
- Glance Guided CX is proven to increase transactions
- A top US bank boasts a 97% customer satisfaction when using our cobrowse feature
- Glance reduces sign-up times for new product by 60%
Where we go from here
As we look to the future, leveraging insights from AI and analytics while empowering banking associates with the right tools and information will be essential in delivering exceptional digital banking experiences and ensuring customer success.
To learn more about elevating financial services through Guided CX, visit Glance.cx.
