Fast forward three years and retail banking will be digital by default—not only in how banks engage with customers, but in every aspect of how they operate.
Digital transformation isn’t new in retail banking. Far from it. Change has been happening for two decades, with big banks moving faster than regional and community banks, many of which are still operating mostly in the analogue world. But the drive to digital is different today. The imperative is stronger. The inevitability is undeniable.
The future of retail banking is digital by default. The question is: how do you get there?
The world’s leading banks are already moving to a digital-first model, but the journey is far from over. The next three years will see a dramatic acceleration in the pace of change, driven by the rise of generative AI and the imperative to deliver seamless, hyper-personalized experiences at scale.
Banks that succeed will be those that can reimagine every aspect of their business—front to back—around digital. That means transforming not just customer engagement, but also products, operations, technology, and culture.
The stakes are high. The winners will set new standards for the industry. The rest risk being left behind.
Question: Thinking about your organization’s current approach to customer experience, please indicate how your business compares to its direct competitors in each of the following areas. (N=2024: 600, 2022)
Take Gen Z, a highly coveted demographic. In the United States, they will make up one-third of the workforce by 2030. Their spending power is growing twice as fast as previous generations'. And they want very different things than their parents and grandparents. Sixty percent prefer mobile banking, and they look to FinTok or YouTube for financial advice. When customers never visit the branch, retail banks’ tried-and-true reliance on customers’ loyalty to the neighborhood branch no longer applies.
83% of Gen Z consumers are frustrated with bank processes.
Retail banks’ traditional product focus makes it impossible to fully see who customers are and what they want. The new homeowner worried about renovating the fixer-upper they just bought is just a mortgage customer. The entrepreneur who must maintain cashflow and purchase equipment to fabricate their new product line is just a small business loan customer. The parent that needs to save for their children’s college education is just a rewards card customer. And when the product comes before the person, there’s no way to know that the homeowner, entrepreneur, and parent is actually the same person.
Some may consider retail banking’s legacy technology problem a tired topic with no easy answers. They aren’t wrong. But a tectonic shift is happening right now.
Our engineers use our proprietary AI platform—Sapient Slingshot—to transform software development:
Easier and faster.
Tremendous change brings tremendous opportunity. In the Gen AI era, retail banks can solve problems that have plagued them for years while creating a strong foundation for what’s next. The intersection of Gen AI and core modernization will define the future of retail banking. Publicis Sapient is working here every day with retail banks across the world. From strategy through migration, we can help you link Gen AI and core modernization to deliver maximum ROI from digital transformation.
Get in touch.