Engageware Releases Report Highlighting 2024 Customer Engagement Trends in Banking

In the third annual release of the ENGAGE Report series, the first of four volumes, banking leaders surveyed express optimism in customer engagement while acknowledging the need for improvement

• 95% of banking leaders agree that having a holistic customer engagement strategy for 2024 that encompasses all channels will play a critical role in their financial institution’s success.
• 37% of banking consumers report they are not as loyal to their primary financial institution as they were a year ago.
• 95% of banking consumers agree that it is important to have the ability to reach a human agent when needed.
• 94% of banking leaders agree it is important for financial institutions to have one system in place to manage the overall customer journey.

BOSTON, MA – January 12, 2024 – Engageware, the industry-leading provider of customer engagement solutions, releases the first volume of its ENGAGE 2024 Report “2024 Outlook for Customer Engagement in Banking.”

According to survey findings and insights among 303 banking leaders and 1,712 banking consumers conducted in the US in October 2023 in partnership with the market research firm, The Harris Poll, leaders and consumers in the banking industry share a sense of optimism, but it comes with caveats. Rapid advancements in technology, coupled with evolving customer expectations, present a dual challenge for banks and credit unions.

ENGAGE 2024 Volume 1, delves into these dynamics, emphasizing the ongoing need for innovation in customer engagement, expanding wallet share, and preventing staff burnout.

Nina Vellayan, Engageware’s CEO, states, “The 2024 Outlook for Customer Engagement in Banking provides valuable insights into the challenges and opportunities facing the U.S. banking industry today. Clearly, a strategic focus on holistic customer engagement is essential for the long-term success of financial institutions.”

The report reveals that 90% of banking leaders agree that maintaining a seamless customer experience is more important than reducing costs. Moreover, an impressive 95% of banking leaders agree there is room for improvement in how their financial institution addresses customer engagement consistently across channels. In 2024, the focus on building a unified strategy, while preserving the human element in customer engagement, will be as crucial as adopting new technologies.

Key Takeaways:

• Banking Leaders and Customer Alignment Lags Slightly. When it comes to perceptions of the most important aspects of a financial institution, 37% of banking leaders report providing 24/7 customer service is essential to its customers. While 39% of banking customers were more likely to prioritize making it easy to immediately connect with a human when needed.
• Loyalty Declines as Customers Explore Options There may be a decrease in consumer loyalty to primary financial institutions, with 37% of banking consumers reporting they are not as loyal to their primary financial institution as they were a year ago.
• Customers Prefer a Blend of Tech and Human Interactions in Banking. Banking consumers seek a balanced approach to technology and human interaction in banking services. 95% of banking consumers agree it is important to have the ability to reach a human agent when needed. And 43% are comfortable using virtual assistants for their financial/banking needs/questions.
• Banking Leaders Advocate for Unified Technology and Knowledge Systems. The report’s findings reflect a strong desire among banking leaders to streamline and consolidate banking technology. Almost all banking leaders, 97%, agree on the need for a centralized knowledge base that serves both employees and customers. 
• 2024 Investment Focus: Communication, AI, and Employee Tech in Banking. Top investment priorities for banking leaders in 2024 include customer communications (36%), AI (47%), and digital banking (35%). There are also planned investments in specific technologies, specifically with a focus on automation (85%) and AI in self-service and virtual assistant (72%) technologies. 94% of banking leaders view investment in technology as also crucial for employee retention and satisfaction.

“Our report underscores a critical insight for the banking sector: bridging the gap between customer expectations and our perception of success is key,” said Nina. “With consumer loyalty declining and a clear preference for a mix of technology and personal interaction, success now depends on effectively combining AI with human interaction in banking services and leveraging technology that empowers staff to perform at their best.”

In addition to the initial volume, Engageware plans to release three subsequent volumes in the ENGAGE 2024 Report series:

• Vol. 2: “Navigating the Role of AI in Banking Customer Engagement”—This volume will delve into the crucial role artificial intelligence plays in transforming the landscape of the customer experience in banking.
• Vol. 3: “Empowering Employees, Enhancing Engagement: Navigating Turnover and Technology Challenges in Banking”—This edition will focus on the intertwined challenges of employee turnover and evolving technology within the banking sector.
• Vol. 4: “Generation-Proof Your Bank: Addressing the Evolution of Client Loyalty”—This volume aims to tackle the changing patterns of client loyalty across various generations.

To access the full report, please visit ENGAGE 2024: 2024 Outlook for Customer Engagement in Banking. For more information about Engageware and its industry-leading customer engagement solutions, follow us on LinkedIn.

About Engageware
Engageware, a leading provider of customer engagement solutions powered by conversational and generative AI, ensures businesses address customer needs promptly. Our platform offers automated responses, access to knowledge bases, and insights into the customer journey. The acquisition of Aivo has expanded our clientele to over 700 organizations across various sectors, enhancing sales, customer experience, and service automation while reducing call center demands. The platform supports seamless channel transitions and provides valuable analytics for informed business growth. Engageware is a portfolio company of Clearhaven Partners.