A recent report from CleverTap, titled Banking on AI: A Leader’s Guide to Customer Engagement Excellence in Banking, revealed data challenges within the global banking sector, with 57% of banking executives still unable to achieve a unified customer view.
This lack of integration comes largely from technological limitations and cost constraints, which hinder banks from providing the personalised, seamless experiences customers now expect.
The study, which surveyed 50 senior banking executives and analysed industry benchmarks across regions such as APAC, the Middle East, North America, LATAM, and the EU, stresses the banking sector’s fight to adapt to rapidly advancing digital demands.
With assets totalling around $3.03 trillion represented in the research, CleverTap’s findings suggest that data silos are a primary obstacle, limiting banks’ prospects to adopt AI effectively and gain comprehensive insights into customer behaviour.
Notably, three-quarters of banking executives appear overly focused on immediate revenue goals, potentially sidelining strategies for long-term growth and customer loyalty.
The report argues that adopting advanced analytics is essential for achieving this balance, as it enables banks to predict future customer trends rather than merely tracking current performance.
To address these issues, CleverTap has proposed the Core Four Framework — Trust, Technology, Touchpoints, and Transactions — designed to guide banks in shifting from product-centric to customer-centric models.
This framework emphasises creating “phy-gital” (physical and digital) experiences, which blend in-person and online banking to foster more meaningful customer relationships.
Key insights from the framework reveal that loyal customers are 2.5 times more valuable in terms of transaction volume, and referred customers are 3.5 times more likely to engage, highlighting a significant opportunity to leverage high-Net Promoter Score (NPS) customers.
However, 50% of banking executives are not capitalising on this potential. Added to this, only a third of banks use four or more engagement channels despite evidence that multi-channel approaches yield 53% higher conversion rates.
To support banks in scaling through these complexities, CleverTap outlines a three-stage AI strategy aimed at improving operational efficiency, enhancing personalisation, and enabling strategic decision-making.
The stages are as follows:
- Operational Optimisers: Leveraging AI to simplify workflows and automate routine tasks, allowing banks to improve efficiency and focus on customer needs.
- Personalisation & Experimentation Architects: Applying AI to customise interactions and conduct large-scale experiments that can drive customer engagement and conversion rates.
- Strategic Innovators: Using AI to automate strategic decisions and gain deeper insights, supporting long-term planning that aligns with evolving customer demands.
Jacob Joseph, CleverTap’s VP of Data Science, emphasised that the banking sector has traditionally lagged in tech adoption, often opting for a “follower” approach. However, he stressed that AI now presents a unique opportunity for banks to bridge this gap, enabling hyper-personalised services that build trust and loyalty. “For banks aiming to remain competitive, AI isn’t optional — it’s essential,” Joseph stated.
Looking forward, the report identifies six AI-driven trends poised to reshape the industry:
- Synthetic Data: Enhances analytics while maintaining privacy standards.
- Emotional Engagement: AI-driven gamification and immersive experiences strengthen customer loyalty.
- Modernised MarTech Ecosystems: AI-integrated platforms unify data and services to improve customer interactions.
- Customer-Centric Personalisation: Dynamic AI-driven personalisation enhances retention and strengthens customer relationships.
- Responsible AI Frameworks: Ensuring transparency and compliance to build customer trust.
- Fintech Collaboration through Open Banking: AI-powered partnerships with fintech firms create comprehensive financial ecosystems, offering real-time insights and a broader service range.
CleverTap’s research stresses the possibilities around AI in banking, particularly in enhancing customer engagement and operational effectiveness.
For banks committed to a digital-first future, integrating AI strategically will be key to sustaining growth and meeting customer expectations as competition increases.
