November 28 — In its most recent quarterly Banking Outlook research study, Chicago-based BAI unveiled three top challenges facing banks of all sizes in 2019: deposit growth, loan growth and new customer acquisition.
Almost half of those surveyed (48 percent) reported that deposit growth was a concern, and nearly as many (42 percent) felt similarly about loan growth. Roughly a third (32 percent) saw acquiring new customers as a challenge. Interestingly, regulatory compliance topped the charts in the firm’s What’s Next 2018 Outlook, followed by loan growth and new customer acquisition, but it did not even break the top three for 2019.
“Over the past 10 years, financial services have worked hard to regain consumer trust. Our research shows that these efforts have paid off,” said Karl Dahlgren, managing director of research for BAI. “Our research also shows that, as we head into 2019, financial services leaders need to focus on more than just earning consumer trust.”
According to consumers surveyed by BAI, their top banking priorities are:
- Deliver tools and options to customize solutions (from products to digital experiences)
- Improve the omnichannel experience (start in one channel and finish in another without starting over)
- Transform branches for a better in-person experience with experts to help achieve financial goals
- Enhance the mobile channel (e.g., Amazon)
Broken down by generation, priorities shift slightly, with branch experience breaking into top needs for only Gen X and baby boomers:
- Millennials: improve ominchannel experience; enhance the mobile channel (e.g., Amazon); and provide tools to customize solutions
- Gen X: provide tools to customize solutions; enhance the mobile channel (e.g., Amazon); and transform the branches
- Baby boomers: provide tools to customize solutions; transform the branches; and improve the omnichannel experience
Top priorities for financial services leaders were definitely in line with what consumers are seeking:
- Enhance the mobile channel experience (e.g., Amazon)
- Make better use of the data about consumers to improve product and service recommendations
- Deliver tools and options to customize consumers’ solutions (from products to digital experience)
- Transform branches for a better in-person experiences with experts to help achieve financial goals
“As deposit growth, loan growth and new customer acquisition remain top of mind heading into 2019, leaders should consider addressing consumer demands such as delivering seamless omnichannel interactions, leveraging customer data to create personalized solutions and enhancing the in-branch expression,” Dahlgren said.
For more insights from the study, or to view a free webinar of the results, click here.