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2024 Banking CX Outlook: 
Data Investments Will Define the Winners

November 29th 2023 | Author: Jeff Kostermans


According to Forrester research, 64% of CX leaders expect to have larger budgets in 2024 for CX initiatives. 

 But where should they spend the funds? Which investments will have the greatest impact?

CX leaders face difficult investment decisions as they navigate an unprecedented second year of declining CX quality, disruption from generative AI, and continued economic challenges. In this environment, CX leaders face more pressure than ever to show their value to the organization. To succeed, they must invest to drive customer-focused action that supports their organization’s goals. 

The fight for deposits is intensifying amid rate competition from megabanks, neobanks and even technology giants like Apple. Younger generations in particular have weakening allegiances to traditional institutions. Over a quarter of megabank customers may switch if a local bank offers better rates according to one survey. On the flip side, aging baby boomers control a large share of deposits that could move as they retire.

To improve retention, smaller institutions must craft personalized offers to build loyalty with investments in data.
Leveraging real-time data and predictive analytics will be key to understanding customer needs and introducing relevant products at the right moments.

“While CX budgets increase to invest in personnel and tech, we are seeing a significant investment in the actionable data that the tech and teams act on.”

     — Will Christodoulou, Co-founder, Cyder

Investments in actionable data will significantly improve banking CX and retention.

In recent years, CCaaS solutions like Genesys, Nice, and Glia have promised to improve the customer experience.  Weaving generative AI into these solutions is once again promising to further improve “seamless” interactions.  But by the time a customer needs to ask a question, resolve an issue, or considers a competing financial product … it's arguably too late.  

Smart, nimble financial institutions realize this and are
rapidly investing in the data and signals that anticipate their customer needs before the contact center is even engaged.  And when this data investment is shared with contact center agents, customer engagements become so much more intuitive and valuable vs just having the ability to seamlessly switch from one communication channel to the other. Imagine knowing there’s interest in real estate listings and moving companies during the next engagement with a customer so you could ask about interest in mortgage rates.

Ethically sourced data shared by both marketing and customer service departments will foster stronger relationships.

Today’s consumers expect personalized, relevant engagement from financial institutions. Progressive firms enable this through precisely tailored interactions driven by customer data analytics.

Disintegrating Sphere

Banks and credit unions now need data strategies that build 360-degree customer profiles. Tracking detailed transaction histories and account holder behaviors provides a foundation. When blended with permission-based zero-party customer data, banks can generate shareable insights on individual user needs, life events, and next-best actions.   

Applied appropriately across channels, shared browsing data enables personalization and builds efficient 1:1 relationships at scale. This means tailored budgeting insights, location-based offers, proactive advice before account holders seek it out, and more. Done ethically, data personalization demonstrates value and builds enduring engagement.

“Personalization will evolve digital banking into a digital sales and service channel that anticipates users’ needs before they are acted on.”

     — Sukhman Dulay, Co-founder, Cyder

How to orchestrate your investment in actionable data.

Accenture suggests three tiers of data gathering be established, each with its specific standard:

  • Zero-party data: Make consumers want to share data by giving them value in exchange.

  • First-party data: Gather only what you have a right to know and what will help to tailor service to the consumers’ needs.

  • Second- and third-party data: Approach the use of data from outside parties in a balanced fashion.


Since zero-party permission-based browsing data is extremely robust, accurate, and actionable, it is immensely valuable. To collect, safeguard, and effectively act on it, consider partnering with a firm like Cyder that is

  • Specialized in the financial services sector

  • Can help you quickly identify high-value opportunities

  • Protects your customers’ browsing data within your organization

  • Is rooted in data privacy best practices

  • Facilitates rapid activation and optimization at scale

As you plan your data strategy in 2024 and want to understand how other financial institutions are leveraging their zero-party data as a competitive advantage, we encourage you to book a call with one of Cyder’s privacy and data strategy experts.

November 29th 2023 | Author: Jeff Kostermans

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