Double-down on Digital: Consumerization of Corporate Banking Rises to the Fore

One phrase I’ve used quite frequently in the past year is “experience matters” – and only partly because I’m getting older….

In this case, I’m referring to digital channels and customer experiences. The so-called consumerization of corporate banking is now in full swing, and banks are prioritizing investment in digital channel access and experiences. This category includes online and mobile apps, APIs, file and network integration, and even smartwatches.

Our annual Celent Technology Insights and Strategy Survey (CTISS 2023) found that, as a global average, 45% of banks ranked digital channels as their top overall product priority.

61% of banks plan to spend at least 5% more on digital channels in 2024 than in 2023. Of that number, 31% of banks plan to increase investments by more than 10% - primarily in the Asia-Pacific and Middle East and Africa regions. Banks in North America and Europe hover closer to the 5% mark. Furthermore, 40% of banks currently have a high-priority digital channels project. Of those, 77% plan to spend more in 2024.

Source: Celent Technology Insight and Strategy Survey 2023

In speaking with our clients, channel and experience investments include:

• API access, developer portals, and marketplaces
• Richer data analytics and insights to support working capital efficiency
• Embedding self-service capabilities in online and mobile apps

Celent’s banking clients tell us that investment in high-quality digital banking products and experiences helps deepen client relationships and increases product adoption. By reducing banking friction and pivoting to more advisory insights and services, banks can drive higher balances and volume of transactions. Higher levels of satisfaction with digital solutions also acts as a lever in deposit rate pricing, as several of the major U.S banks have noted in recent financial reports. Furthermore, strategic campaigns to drive digital product adoption can also support the bank’s objectives to automate processes, remove paper, and reduce the level of support required for commercial clients in the branch network.

Celent is kicking off our CTISS 2024, and we will publish the results soon after the survey is complete. I don’t have a crystal ball, but I do expect digital channels and experiences to remain as a top priority, even in the face of some belt-tightening. (Hopefully this blog post ages well)...

As the results say – double down on digital because experience matters!