Capgemini – Retail Banking Report, 2024

The year 2023 was successful for banks globally, with strong revenue growth and improved profit margins. However, as they enter 2024, banks face a challenging landscape with inflationary pressures, potential rate cuts, and declining net interest income. The cost-of-living crisis has led to a contraction in customer spending and banks are seeking to engage with profitable customer segments through personalized approaches. New-age banks are gaining ground, particularly with the youth segment, as traditional banks struggle with digital experience and mobile banking. Banks are reassessing their cost base, closing unprofitable business lines, and focusing on productivity and customer retention. They are also increasing their digital transformation investments, with 70% of bank CXOs planning to do so in 2024. Generative AI is seen as a significant advancement in AI technology, with potential benefits in enhancing customer experience and operational efficiency. Banks can leverage generative AI in areas such as workforce productivity, document processing, and call center efficiency to strike a balance between operational activities and customer interactions.