According to Doug Brown, President of Digital Banking at NCR Voyix, real-time payments, artificial intelligence (AI), and hyper-personalisation are crucial for optimizing the customer experience.
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GLOPYMNTS sought insights from industry leaders in payments and digital commerce on the transformative shifts, technological advancements, and strategies shaping businesses in 2023. According to Doug Brown, President of Digital Banking at NCR Voyix, real-time payments, artificial intelligence (AI), and hyper-personalization are crucial for optimizing the customer experience.
The financial services industry experienced a dynamic year in 2023, marked by bank closures, regulatory changes, economic uncertainties, and shifting consumer behaviors. To adapt to these challenges, both financial institutions and FinTech partners accelerated their digital transformation efforts. Notably, mobile wallets, contactless payments, data analytics, and AI were central to these developments.
Looking ahead to 2024, banks and credit unions are focused on meeting evolving consumer demands, optimizing margins, and keeping pace with technological advancements. NCR Voyix, in collaboration with leading financial institutions, identifies key differentiators for success in meeting customer experience demands:
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Payments Take Center Stage: With options like mobile wallets, real-time payments, and services like FedNow® gaining prominence, banks must facilitate choice and develop strategic plans for implementing crucial payment methods. Regardless of the choices made, prioritizing ease of use and simplicity throughout the entire payment experience is crucial for success.
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More AI Use Cases Emerge: Tangible AI-powered applications will continue to infiltrate banks and credit unions, enhancing efficiencies and making data more actionable. Rather than replacing individuals, AI is seen as an augmentation tool, redirecting human efforts toward growth-focused and strategic initiatives. Financial institutions need a focused roadmap backed by data to implement AI strategically.
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Hyper-Personalization Becomes a Requirement: Beyond suggesting products based on past purchases or demographics, hyper-personalization is becoming essential. Leveraging a wide range of data points to create truly individualized experiences will lead to increased engagement, improved conversion rates, brand loyalty, and a more profitable consumer.
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Gig Work Gains Momentum: With an increasing preference for self-employment among Generation Z and economic hardships leading to additional income sources, gig work is on the rise. Financial institutions have an opportunity to better serve this segment by providing tools and education to navigate financial intricacies and maximize profits.
To navigate successfully, bank and credit union executives are advised to prioritize flexibility, continuous innovation, and a customer-centric approach. Embracing emerging technologies and collaborating with industry partners will be essential for continued success and meeting consumer demands.
Source: PYMNTS
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