Banks and credit unions will invest in their customer and member engagement offerings in 2023 as more clients desire relationship banking.

Financial institutions (FIs) plan to invest in digital improvements, physical branch support, contact center technology, marketing, operations and loan technology, according to the report “ENGAGE 2023: Customer Engagement in Banking: Annual Trends Report” released Dec. 6 by software provider Engageware. The company surveyed 114 employees in leadership roles at U.S. retail banks or credit unions with at least five locations, as well as 451 U.S. banking customers between ages 18 and 65.

In 2021, banks and credit unions shifted away from branch and contact center investments in favor of digital channels. However, customers today are longing for more human interaction, which has FIs reinvesting in channels in addition to digital, according to the report.

Following the COVID-19 pandemic when physical branches closed and digital capabilities were a must, banks are seeing clients’ desire for increased human assistance, Caroline Platkiewicz, senior marketing manager at Engageware, told Bank Automation News.

“Banks and credit unions have invested heavily in bringing on enhanced digital solutions or widgets and they are not seeing the adoption from customers,” Platkiewicz said.

The study found that in 2022:

• 43% of FIs focused on digital engagement as their top focus, down from 49% in 2021;
• 29% of FIs made branch engagement their top focus, up from 5% in 2021; and
• 28% of FIs listed contact centers as their top focus, up from 8% in 2021.

Which online enhancements FIs focused on also shifted this year, according to the report, with top digital priorities being: improving adoption of digital tools; providing resources and support in digital channels; and improving mobile banking apps. In 2021 the top three digital priorities were: improving the digital experience; providing resources and support in digital channels; and preventing fraud.

Investments in 2023

Thirty percent of FI respondents said their bank or credit union will make digital improvements in 2023 to deliver on customer and member engagement, according to the report. The improvements include self-service options, driving digital adoption and improving mobile apps.

The study also found that in 2023:

• 15% of banks plan to invest in relationship-banking and financial wellness;
• 14% of banks will invest in physical branches including the addition of ATMs; and
• 12% of banks are planning contact center technology investments.

FIs also are investing in their relationship-building capabilities, including investment programs, data-informed technology, and hiring and training team members to offer customer support, according to the report.

“There definitely is still a desire and something to be said for having access to human assistance when necessary,” Platkiewicz told BAN. “And we’re all about helping financial institutions realize and achieve that by bridging that gap.”

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