To better understand the state of digital transformation in U.S. banking, we surveyed 250 senior leaders from U.S. banks. We asked them about the progress of their digital transformations, the main challenges they face, and how they are prioritizing their transformation strategies.
Here’s a snapshot of what we found:
Key Stats at a Glance
- 68%: Over two-thirds admit that evolving customer expectations have highlighted weaknesses in their organization’s current customer experience.
- 67%: Almost seven in ten believe their firm’s legacy systems and infrastructure are hindering them from providing the digital experiences their customers expect.
- 53%: Over half cite AI and emerging technologies as their company’s number one priority over the next three years.
- 33%: Three in ten have a fully agile operating model.
Top Priorities for Digital Business Transformation in U.S. Banks:
- 15%: Improving cybersecurity
- 15%: Improving the customer experience
- 15%: Enabling greater agility
- 12%: Growing revenue with new products and/or service offerings
- 12%: Reducing costs through improved efficiency
- 11%: Growing revenue from existing products
- 10%: Acquiring new customers
- 9%: Challenging the threat posed by new market entrants (e.g., Google, Apple, Amazon)
Key Challenges Facing U.S. Banks:
- Operational Agility: 38% of banks cite this as a major challenge.
- Legacy Technology: 38% identify legacy systems as a significant barrier.
- Regulatory Challenges: 36% see regulatory issues as a primary obstacle.
Personalizing Customer Journeys is a Priority for U.S. Banks
Banks are focused on using data to create new products and services that deliver more personalized, omnichannel experiences.
- 44% say that creating personalized customer journeys (such as tailored marketing and personalized saving tips based on individual spending habits) is their main objective.
- 41% are combining customer data across different systems to gain a richer understanding of their customer relationships.
- 36% are centering their customer experience (CX) transformation on community engagement, such as educational tools and games to improve financial literacy among children, and providing remote access for customers who lack digital skills.
U.S. Banks are Transforming How They Operate
Banks are transforming to survive in the customer-centric digital era. Their transformation priorities span people, partners, technology, and culture.
- Generative AI: 40% are prioritizing generative AI for internal use.
- Data and Analytics: 37% are prioritizing data and analytics to better understand their customers.
- Developing Talent: 32% state that investing in existing talent (through upskilling and reskilling) and hiring new talent with digital skill sets is an operational priority.
How Do U.S. Banks Think They Stack Up?
- 61% believe they’re ahead of their competitors in their ability to transform customer experiences.
- 91% think they’re ahead in key development areas, such as innovation for products and services.
Self-Assessment of Transformation Readiness:
- Speed: 76% rate their speed of transformation highly.
- Investment: 35% rate their investment in transformation as strong.
- Capabilities: 79% rate their transformation capabilities as strong.
Internal Uses of Generative AI Are the Focus—for Now
Nearly two-thirds (65%) of banks are pursuing transactional generative AI use cases, including credit analysis, portfolio management, underwriting, risk measurement, legal contracts, proposals, RFPs, pitch documents, and more.
For more information, contact: david.donovan@publicissapient.com
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