AI in banking sales. Artificial intelligence is more than just a buzzword – this intersection of high tech and high finance is rapidly reshaping how the banking industry is enhancing customer experience and driving revenue. As we move further into 2024 and beyond, ignoring the power of AI in banking sales isn’t just a missed opportunity; it might soon be the difference between thriving and just trying to survive.
But the question remains: How can we cut through the noise and truly harness the transformative potential of AI in this dynamic landscape? This isn’t about replacing humans with robots. It’s about empowering your human teams with data-driven insights and automated processes that make everyone more effective and more customer-centric. Let’s explore this powerful shift together.
AI in Banking Sales: A Data-Driven Revolution
Banks are facing fierce competition for customer deposits due to fluctuating interest rates and the rise of nonbank competitors. Additionally, generic product offerings make it challenging to stand out. This makes deepening customer relationships absolutely crucial in 2024 and beyond.
Yet, surprisingly, many banks and credit unions are struggling to adapt. According to The State of Financial Marketing report, creating deeper banking relationships has increased in importance (from 7th to 3rd) over the past three years, showing just how critical this challenge has become. To understand the scope of the problem, consider that most Americans (60%) bank at more than one financial institution.
It takes an average of 3 years for a customer to open a second account at their primary bank (with 3-7 years being the average for three accounts). These numbers paint a clear picture: banks are competing fiercely for customers who are spreading their business around more than ever before. AI offers a way to combat these difficult banking trends and enhance the sales process.
Imagine a sales cycle that, instead of stretching out over years, could be dramatically shortened. Think highly qualified leads converting within a single day. It might sound too good to be true, but that’s the kind of disruption that thoughtfully implemented AI is bringing to banking. It all comes down to data analysis and asking the right questions, at the right time, across all of your channels.
Transforming In-Person Branch Experiences
Foot traffic in physical branches continues to decline as digital banking options continue to improve and become mainstream. Even many less tech-savvy consumers are choosing digital-first options, forcing banks to adapt and find ways to deliver real value for the in-person banking experience. Although talent shortages continue to be a pain point for banks and credit unions, those who are able to hire effectively need to invest heavily in training.
Equipping frontline team members with the tools and information they need to be successful is essential. This is another key opportunity for AI to shine by augmenting and empowering these employees. By providing them with dynamic, data-driven conversation guides powered by AI, you can transform these team members into trusted advisors.
Offering real-time insights not just about products but about customer needs, pain points, and long-term financial goals will help to bridge the empathy gap that exists for many consumers today. Just 44% of banking customers believe that their financial institutions provide them with a personalized experience. AI solutions can help banks exceed customer expectations and increase customer loyalty.
Winning the Digital Conversion Battle
While more customers are embracing digital banking, opening new accounts online comes with its own set of hurdles: high abandonment rates. These rates often hover in the 70-90% range, leaving money (and relationships) on the table for banks across America. Why is this happening?
Many would-be customers start the account-opening process, but become confused or intimidated by the complexity and volume of choices in front of them. The experience can feel overwhelming for prospects, especially if a financial need isn’t completely obvious (like a new checking account) or if their life situation requires a more nuanced solution.
The same conversation guide concept that revolutionized in-person banking can be applied to digital onboarding processes as well. Research from Salesforce shows that salespeople using AI solutions like this reported a remarkable 84% jump in closed deals, signaling the potential these technologies can offer.
Instead of forcing prospects to figure everything out on their own, AI-powered conversational interfaces (or even interactive chatbots) can replicate the magic of that face-to-face branch experience. By asking smart questions, eliminating confusion, and offering an empathetic ear, banks can drastically reduce digital abandonment rates. This will allow them to capture valuable leads and turn those leads into loyal customers.
Unlocking the Power of Proactive Outreach
In a perfect world, every banking prospect would smoothly transition from interested lead to happy, long-term customer, purchasing multiple products over time. But as any seasoned banking professional knows, the reality is much more complex than that. Many online prospects won’t convert on the first try. This is where data becomes extremely valuable.
AI-powered conversation guides don’t just help close deals in the moment. They become valuable treasure troves of customer insights that can enhance marketing automation efforts. Every answer, every hesitation, every click tells a story – and when aggregated across hundreds or thousands of interactions, AI can identify patterns and anticipate future needs. This is something that human teams simply can’t match.
Instead of sending generic marketing emails about products they may not need, banks can deliver tailored, proactive communications that speak directly to where the customer is on their financial journey. They might highlight the benefits of opening a 529 Plan as they get closer to having a child or subtly mention the advantages of refinancing their mortgage if interest rates dip. This creates an opportunity to deliver a personalized message at the ideal moment to maximize conversions. It’s customer relationship management that finally lives up to the promise, leading to deeper engagement, lasting trust, and sustainable long-term growth.
The biggest benefit might be peace of mind for banks, knowing they’re future-proofing their business by building genuine relationships – the cornerstone of any financial institution’s success.
AI for Personalized Business Banking Solutions
Serving the needs of businesses is becoming an even higher priority for most banks today. But as the lines continue to blur between traditional business banking and fintech providers targeting startups and SMBs, establishing true differentiation is vital in this evolving market. Luckily, the core concepts above (using AI-powered conversation guides and relationship intelligence) apply here as well.
Let’s explore some key areas that will be particularly crucial in this market over the coming months and years. The business banking market offers a significant growth opportunity, but finding the right approach can mean the difference between winning big and falling short.
Winning the Commercial Lending Race
According to Jack Henry’s strategic priorities benchmark study from 2023, banks are laser-focused on commercial lending right now. Most see a huge growth opportunity in the small and midsize business (SMB) market. Rather than simply offering static products with a one-size-fits-all approach, banks can leverage AI insights for a more personalized and effective relationship-driven approach.
For example, a regional bank might discover, through their AI-driven analysis, that local businesses with revenues between $5 million and $15 million experience predictable cashflow crunches in Q3. Instead of passively waiting for these companies to request a short-term line of credit, the bank can reach out proactively. Starting a needs-based conversation based on the customer’s real-life needs, even if they are not even aware of them yet, can be very effective.
Perhaps the bank could also build customized content, such as a blog post, whitepaper, or even just a targeted social media campaign, specifically geared toward addressing those predictable cashflow issues. This will help to establish themselves as trusted advisors rather than just lenders.
Deepening Existing Relationships With Data
According to a recent CNET article, the average adult in America already uses 5.3 financial accounts on average. It’s almost a sure thing your existing business customers already have banking relationships (perhaps even loans) at other banks. So, how do you win a larger share of their banking business?
Again, a thoughtful application of AI in banking sales provides insights that will propel these conversations forward and unlock opportunities. Consider this: A mid-sized business banking customer mentions during a routine call with their relationship manager that they’re about to launch a new product line and need to hire quickly.
It might seem innocent at first, but those little nuggets of information can be automatically flagged within AI-powered CRM and customer engagement platforms. The system might suggest proactively offering that company additional HR solutions to streamline hiring, payroll processing for the increased headcount, or even foreign exchange services if that new product will involve international clients.
By strategically listening and acting on data insights in real time, banks will find more opportunities to cross-sell and up-sell, increasing revenue per customer while cementing long-term relationships built on mutual success. And there’s much more than lending and deposit accounts to think about.
Insurance products, wealth management services, retirement plans, and even specialized business credit cards (travel rewards, employee spending cards) are just a few areas where intelligent segmentation, driven by AI analysis and tailored recommendations, will provide tremendous ROI in 2024 and beyond.
Conclusion
AI in banking sales is about to change everything. In 2024, this technology is poised to unlock extraordinary opportunities and redefine what it means to put customers first. But it’s important to remember one crucial thing: at its core, an AI strategy prioritizes human relationships.
By combining smart strategy, thoughtful application of AI technology, and a relentless focus on empathy and personalization, forward-thinking banks can achieve incredible things. The banking sector has the potential to build a future where deeper customer relationships, increased revenue, and reduced sales cycles aren’t exceptions. They are expected. Leaders who wait around too long to embrace these powerful solutions will quickly fall behind competitors.
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