Banks around the world are bracing themselves for tougher economic conditions amidst record inflation, rising interest rates, and the war in Ukraine. Forrester has been tracking shifts in retail consumer banking to help banks better understand how to adapt to — and capitalize on — these shifts. Here are some of the key trends Forrester is seeing for retail consumer banking:
- Competition and collaboration are coalescing. While banks once thought of collaborating with disruptive new entrants as fraternizing with the enemy, we’re now seeing them embrace collaboration with fintechs and tech titans (aka the competition!). This presents a challenge for traditional banks, as they will need to find the right balance in their relationships with firms that are both partners and competitors.
- Improving customer experience (CX) and driving customer loyalty continues to be a priority. CX continues to be a priority for banks, with 71% of business and technology professionals at commercial banking firms saying that improving CX is a high or critical priority, according to Forrester’s 2022 data. Getting closer to the customer, deepening engagement, and driving loyalty is always a sound business strategy, but it’s even more important during tougher economic times. Successful banking brands are improving CX with hybrid experiences and recognize that customer trust is a need-to-have, not a nice-to-have.
- Innovation is shifting to solutions. More than two-thirds of banking executives say that improving products and/or services is a priority, and 66% say that improving the ability to innovate is a priority, according to Forrester’s 2021 data. However, the drivers and delivery of innovation are shifting as leading banks are prioritizing customer solutions over product features and looking at modular solutions that blur traditional product lines.
Learn more about the trends shaping the next generation of retail consumer banking and what they mean for the priorities of digital business executives here. If you have additional questions, book an inquiry or guidance session here.