CleverTap, the all-in-one engagement platform, today released its latest Market Research Report with insights into the global banking landscape, “Banking on AI: A Leader's Guide to Customer Engagement Excellence in Banking”. The report reveals that 57% of banking executives have yet to achieve a unified customer view, indicating significant challenges with data silos due to technological barriers and cost constraints. These data challenges are impacting banks’ ability to deliver personalized, seamless customer experiences in an era where AI-driven engagement is becoming essential.The research explores the transformative shift within the banking sector leveraging AI to address modern banking challenges, including the need for personalized and secure digital experiences amid rapid digital transformation. Through this study, CleverTap set out to identify where the AI opportunity lies for banks and introduced its strategic framework to help banks build excellence in customer engagement, along with highlighting key trends for Banks in customer engagement within the AI space, while understanding the challenges and opportunities faced by banking leaders. Furthermore, the company also assessed AI's role in enhancing customer experiences.
The methodology included a survey of 50 senior executives in India’s banking sector, in-depth interviews for qualitative insights, and analysis of industry benchmarks and best practices. This research covered banks with a combined total asset size of about $3.03 trillion, spanning APAC, the Middle East, North America, LATAM, and the EU.
Insights from the report reveal that 3 out of 4 banking executives may be missing out on critical opportunities to build customer loyalty and drive sustainable growth, as they focus heavily on short-term revenue targets. To effectively balance short-term metrics with long-term financial outcomes, banks need to harness advanced analytics that not only track current performance but also predict future customer behaviors.
To assess the gaps and identify opportunities for the banking sectors in the age of AI, CleverTap has developed a framework that will serve as a foundation to improve customer experiences and drive long-term value. CleverTap’s Core Four Framework – encompassing Trust, Technology, Touchpoints, and Transactions – is designed to help banks transition from product-focused to customer-centric approaches, cultivating deeper relationships and delivering phy-gital experiences. The research covers the nuances for retail banks, neo-banks, and specialized banks, providing insights across the four core pillars.
Key gaps identified basis of the framework include:
Loyal customers generate 2.5x higher transaction value than others, and referred prospects are 3.5x more likely to onboard. However, 50% of banking executives do not effectively leverage their high-NPS (Net Promoter Score) customers
57% of banking executives have yet to implement a unified customer view, suggesting issues with data silos. The primary obstacles to unification are technological challenges and associated costs
41% of banking executives are not using real-time segmentation capabilities, limiting their ability to deliver timely and personalized communication
Banks using more than four channels in their engagement campaigns see a 53% improvement in conversions compared to those using fewer than four channels, yet only about 33% of banks have adopted this approach
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