EPAM: 96% of Consumers Happy With AI in Banking

EPAM Continuum, the integrated business, technology and experience consulting practice of EPAM Systems, has released its 2024 Consumer Banking Report, revealing that 96% of consumers are happy with banks adopting and integrating AI to better serve end users. 

To complete its 2024 report, EPAM Continuum surveyed adults from key banking geographies including Australia, Canada, Germany, Hong Kong, Italy, Saudi Arabia, Singapore, the UK and the US, finding that satisfaction with banks remained strong globally amid rising consumer expectations for increased digital capabilities and personalisation.

Indeed, the results of EPAM’s report not only underscore consumer expectations for enhanced digital capabilities but also highlight the importance of fintech disruptors that continue to move the needle for more personalised and convenient digital experiences.

EPAM: Consumers want the best of both worlds 

Consumers surveyed expressed satisfaction with their primary bank, citing good customer service, reputation and local presence as positive attributes. 

However, with consumer desire for AI and digital banking services high, for those banking organisations behind the curve of innovation, the threat from fintechs (primarily neobanks) is firm. 

The staying power for more traditional incumbents is the in-person banking service they offer, with most consumers seeking the best of both worlds – a seamless digital experience and easy access to in-person banking services. 

For those banks closing branches and receding from towns and cities, it would seem their transformation plans must be robust enough to compete with digital banking leaders – and they should keep an adequate amount of branches open – if they are to maximise customer retention and acquisition rates. 

Balazs Fejes, President of EU and APAC Markets at EPAM, says: “In the face of rapidly changing market dynamics, marked by high-interest rates, inflationary pressures and market volatility, banks have managed to uphold elevated levels of trust and customer satisfaction.

“To remain competitive in this evolving climate, banks must embrace automation for improved personalisation and engagement across all customer channels, leveraging AI for operational efficiency and forging technology partnerships to drive innovation and cost reduction.”

Consumer Banking Report: The key findings

EPAM’s 2024 Consumer Banking Report highlighted a series of other emerging themes, including: 

• Trust in banks remains high (79%) when it comes to investing money, handling finances and keeping data safe. However, 30% (rising to 37% for those 18-34) are still considering changing banks in the next 12 months, lured by better rates and rewards elsewhere.
   
• Usage of bank branches remains high, with 86% visiting in the past year, mainly for deposits and cash access. This is despite respondents’ awareness that most services are available digitally, revealing a lingering discomfort with moving to fully digital or remote banking.
   
• Instant payments (78%) and digital access to a banker or concierge (64%) are deemed the most important services banks can offer over the next three years, with respondents showing an appetite for more financial advice and money management support from banks.
   
• Uptake of AI banking tools remains low (21%), but satisfaction is high among those who have used these tools (96%). However, 57% would not feel comfortable acting on AI financial recommendations, with discomfort being the highest among older demographics.
   
• Three-quarters of consumers (74%) use an average of two to three financial providers in addition to their primary bank, especially for credit cards, savings and checking or withdrawals, with 25% using third-party money management apps.

Last year, EPAM Principal Michael Nichols spoke to us at FinTech LIVE London on the value of open banking and generative AI for consumers. 

He told us: “Open banking has opened up opportunities for fintechs, for challenger banks and several traditional banks which have tried to create their own digital banks. 

“Today, there's a whole ecosystem of those fintechs who are exploiting the open banking APIs, both in the UK and across the world, to develop innovative products.”

EPAM Systems is a leading digital transformation services and product engineering company. It has used its software engineering expertise to become a leading global provider of cloud and AI-enabled transformation services, as well as a leading business and experience consulting partner for global enterprises and ambitious startups.

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