Future Banking Trends: Winning Customer Experience in 2024

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Firas Ghunaim

The world of banking is transforming at breakneck speed. Get ready to leave your competition in the dust! In this guide, we'll uncover the essential trends shaping the ultimate customer experience (CX) and show you how to use them to win big in the coming years.


Key Trends Revolutionizing Banking Customer Experience

Let's break down the top trends you need to understand to stay ahead of the curve.

Trend 1: AI-Powered Personalization

  • What is AI-powered personalization in banking? It's using artificial intelligence and customer data to tailor financial advice, recommendations, and support to each individual. 
  • Why it matters:
    • Boosts customer satisfaction with relevant offers
    • Increases engagement and loyalty
    • Drives revenue growth

Imagine AI working as your 24/7 financial advisor, analyzing your spending, income, and even life goals to offer the perfect product or nudge you towards better financial health. That's the power of AI in banking.

Start small: Use AI-powered chatbots to deliver 24/7 support, freeing up staff for complex queries.

Expert Tip: Invest in Drupal 10 - the leading open-source CMS powered by AI for full personalization, high performance and enterprise-grade capabilities.


Trend 2: Extension by the Metaverse

  • What is the metaverse? It's a network of interconnected virtual worlds where people can interact, work, and play in immersive ways.
  • How will it impact banking? The metaverse will create a whole new virtual economy, demanding seamless financial experiences that transcend physical boundaries.

Get ready for banking without borders! From virtual branches to financial transactions embedded within games, the metaverse will redefine how we interact with money.

Don't rush, but do experiment! Partner with a metaverse platform to offer basic services in a virtual world.


Trend 3: Simplification Powered by Embedded Finance

  • What is embedded finance? It's seamlessly integrating financial services (like payments or lending) directly into non-financial products and platforms.
  • Why it's disruptive: Embedded finance removes friction, making it crazy-easy for customers to get the financial services they need, right when and where they need them.

Think about buying a new appliance and immediately being offered a financing plan within the checkout process. That's embedded finance, and it's changing how people buy (and how banks compete).

Identify pain points: Where in your customer journey is there friction? Can embedded finance smooth it over?


Trend 4: Democratization Driven by Decentralized Finance

  • What is decentralized finance (DeFi)? It's a system for managing financial transactions using blockchain technology instead of traditional banks or intermediaries.
  • The big deal: DeFi opens the door to financial services for the unbanked and promises to replace outdated systems with transparent, peer-to-peer solutions.

From everyday banking to complex investments, DeFi is making it possible for anyone with an internet connection to participate in the global financial system.

Educate yourself: Understand the risks and regulations surrounding DeFi before diving headfirst.


Trend 5: Acceleration Based on Cloud Banking

  • What is cloud banking? It's the delivery of banking services through the internet, rather than relying on physical infrastructure.
  • Benefits:
    • Faster innovation and updates
    • Scalability to handle surges in demand
    • Cost savings
    • Enhanced security (yes, often safer than on-premises!)

Cloud banking is the backbone of modern finance. It's what enables banks to offer the speed, flexibility, and personalized experiences that customers crave.

Prioritize scalability: Choose a cloud solution that can effortlessly grow with your business.Choose a cloud solution that can effortlessly grow with your business.


Key Impacts of Digital Transformation

As humanity crosses the 8 billion mark, the digital age reshapes every aspect of our lives. Yet, as BCG research points out, only 35% of digital transformation efforts reach their goals, often overlooking the nuanced human behaviors influenced by digital technologies.

Digital transformation fosters transparency, accountability, and efficiency, influencing societal and environmental responsibility. It champions ethical consumerism, mindful living, and authentic engagement, steering away from mindless consumption towards a more human-centered approach.

  • Efficiency through Automation: Digital tools automate banking processes, enhancing efficiency, reducing costs, and elevating customer satisfaction.
  • Robust Security Measures: Advanced digital solutions fortify security, mitigating fraud risks and safeguarding user data.
  • Market Accessibility: Lowered barriers to entry have introduced new competitors, compelling traditional banks to innovate.
  • Innovative Business Models: Technologies like mobile payments and digital lending have diversified banking services, tapping into new customer segments. Learn more about how to build your own Neobank.
  • Biometric Authentication: In pursuit of seamless security, banks are adopting biometrics, using unique personal traits for user verification, thereby enhancing both security and convenience.


Humanizing Finance in a Digital World

A PWC study reveals a striking trend: 61% of consumers engage with digital banking weekly, yet 20-25% find themselves unable to open a bank account digitally. This underscores the profound impact of digitalization on banking, offering unprecedented convenience while highlighting areas for improvement.

Need to create more accessible banking experiences? Learn more about seamless customer onboarding best practices.

Related: CMS Guide for Saudi Financial Services: A Comprehensive Guide


Democratizing Finance for the Digital Age

The future of banking is about democratization – making financial services accessible and empowering for everyone. These trends aren't just buzzwords, they're the tools you need to:

  • Provide insanely personalized experiences
  • Extend your reach into new markets (hello, metaverse!)
  • Make banking so easy customers don't even think about it

Ready to create next-gen financial products and build a brand customers love? Let's talk! Our financial UX design expertise will give you that winning edge in the digital age.

Related: Top 10 Trends Revolutionizing the Banking Sector


Conclusion: Charting the Path Forward in Saudi Arabia's Digital Finance Landscape

The future of banking in Saudi Arabia is characterized by technological innovations that promise to democratize finance, enhancing accessibility and personalization. By embracing open banking and AI, the metaverse, embedded finance, and cloud technology, the financial sector can offer more inclusive and engaging customer experiences.

Need a free consultation regarding your digital banking capabilities? Contact us today.

Related: Top Banking CX Tools in 2024