As the curtains close on 2023, the banking sector anticipates another year of transformation and innovation.
Pablo Alaejos, Design Director at Designit, a global experience innovation consultancy, peers into the future to share five insightful predictions for the banking landscape in 2024.
1. Lifestyle Banking: An Evolution in Customer Engagement
Alaejos foresees a surge in lifestyle-oriented banking strategies to captivate customer loyalty. He emphasises that banks are poised to redefine customer experiences by integrating lifestyle perks directly into their services. Brands like Revolut and partnerships like AMEX and British Airways have already ventured into this realm. Now, Alaejos predicts that in 2024 banks will widen access to lifestyle benefits beyond traditional segments, enabling users to enjoy tailored services that resonate with their preferences.
2. The Emergence of Super-Apps: A Convenient Ecosystem
The concept of super-apps, popularised in Asia, gains traction globally. Alaejos points to Elon Musk’s vision and how banks are stepping into this territory, citing Avo by Ned Banks as an example. These super-apps amalgamate various services—banking, healthcare, entertainment—under one umbrella, promising a streamlined user experience. He anticipates that in 2024, mainstream banks will collaborate with major brands to curate super-apps, offering customers an all-inclusive platform for seamless interaction.
3. AI-Powered Personalisation: Tailoring Experiences
Highlighting the importance of personalised experiences, Alaejos underscores the potential of AI in revolutionising banking. He envisions AI enabling banks to finely price products and services within mobile apps. This will foster enhanced customer loyalty through a more tailored and convenient banking experience.
4. Banking in the Metaverse: Digital Expansion
While physical branches decline, Alaejos speculates that 2024 could witness banks venturing into the metaverse. Noting the initial forays of HSBC and JP Morgan Chase into digital realms, he predicts a resurgence in metaverse interest, considering advancements in hardware and the improved understanding of these virtual landscapes. Banks aim to recreate branch experiences in digital spaces, catering to a technologically inclined customer base.
5. Values-Driven Banking: Attracting Ethical Investors
Citing research from the US Bank, Alaejos highlights a shift among younger generations towards value-driven investments, particularly in ESG (Environmental, Social, Governance) initiatives. He anticipates banks leveraging this trend by offering investment opportunities aligned with customers’ values and beliefs, such as LGBTQIA+ led companies or carbon-neutral ventures. This move aims to entice younger demographics seeking ethical investments