CleverTap Report Reveals AI Challenges and Opportunities in Banking Customer Engagement

CleverTap's Market Research Reveals Banking Sector's AI Challenges

CleverTap, an all-in-one engagement platform, has released a comprehensive market research report titled "Banking on AI: A Leader's Guide to Customer Engagement Excellence in Banking" 1

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. The study, which surveyed 50 senior executives in the banking sector across multiple regions, reveals significant challenges and opportunities in implementing AI-driven personalization in banking.

Key Findings: Data Silos and Personalization Hurdles

The report highlights that 57% of banking executives have yet to achieve a unified customer view, primarily due to data silos caused by technological barriers and cost constraints 2

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. This fragmentation is hindering banks' ability to deliver personalized, seamless customer experiences in an era where AI-driven engagement is becoming increasingly essential.

Other key findings include:

• 50% of banking executives are not effectively leveraging their high-NPS (Net Promoter Score) customers 3

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• 41% are not using real-time segmentation capabilities 3

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• Only about 33% of banks are using more than four channels in their engagement campaigns, despite a 53% improvement in conversions for those who do 3

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The Core Four Framework and AI Strategy

To address these challenges, CleverTap has developed the Core Four Framework, encompassing Trust, Technology, Touchpoints, and Transactions 2

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. This framework aims to help banks transition from product-focused to customer-centric approaches, fostering deeper relationships and delivering "phy-gital" experiences.

The report outlines a three-stage AI strategy for banks:

1. Operational Optimizers: Using AI to enhance operational efficiency
2. Personalization & Experimentation Architects: Applying AI to improve orchestration and personalization
3. Strategic Innovators: Leveraging AI for automated strategic decision-making and long-term planning 4

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Future Outlook: AI Transforming Banking

Looking ahead, CleverTap's report highlights six transformative AI outlooks for the banking sector:

1. Synthetic data innovations for enhanced analytics
2. AI-driven emotional engagement and personalized gamification
3. Modernization of MarTech through AI-powered ecosystems
4. Shift towards customer-centric approaches using AI for dynamic personalization
5. Implementation of responsible AI frameworks
6. Collaboration with fintech firms through AI-powered open banking 1

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Expert Insight

Jacob Joseph, VP of Data Science at CleverTap, emphasizes the critical role of AI in banking's future: "The banking sector has often played catch-up when it comes to tech innovations, but customer familiarity with digital solutions is making it clear that banks need to bridge this divide quickly. [...] For banks aiming to stay competitive in a digital-first world, AI isn't optional - it's essential." 1

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As the banking sector continues to evolve, the integration of AI-powered solutions appears to be a key factor in meeting and exceeding customer expectations, building trust, and maintaining competitiveness in an increasingly digital landscape.