Amid macroeconomic uncertainties, retail banks face strategic decisions to adapt to evolving business landscapes. A recent survey highlights productivity and efficiency as top priorities for bank leaders. Notably, 70% of bank CXOs plan to boost investment in digital transformation by up to 10% in 2024.
The report, conducted by Capgemini, evaluated 250 retail banks globally, revealing that only 4% excel in business commitment and technology capabilities for intelligent transformation. Regional disparities further underscore this challenge, with North America, Europe, and Asia-Pacific showing varying levels of readiness.
To navigate ongoing challenges, banks must embrace intelligent solutions embedded with AI-driven capabilities. Yet, measuring success remains a hurdle, with just 6% of banks establishing KPIs for AI impact, while over 60% are still identifying suitable metrics.
Delayed realization of AI outcomes risks “generative AI silent failure,” as indicated by the report. Only 2% of executives regularly track business impact KPIs, and 39% express dissatisfaction with AI use case outcomes. To address this, establishing an AI observatory for real impact tracking is recommended.
Nilesh Vaidya, Global Industry Head of Retail Banking and Wealth Management at Capgemini, emphasizes the urgency for banks to adopt and leverage generative AI responsibly. Employees welcome generative AI copilots for automating tasks, especially in fraud detection and customer interactions, potentially optimizing up to 66% of operational time.
Conversational AI holds promise in alleviating customer dissatisfaction with chatbots. However, traditional rule-based chatbots struggle with complex queries, leading to rising call abandonment rates. Intelligent contact centers, integrating conversational AI capabilities, are suggested to enhance customer experiences.
The report draws insights from a comprehensive survey involving over 250 retail banking executives, 1,500 banking employees, and 4,500 banking customers across 14 markets, supported by Capgemini’s proprietary market-sizing model and interviews with industry partners.