Customers take center stage as citizens modify features for supremacy
In a bid to stay competitive in the rapidly evolving banking industry, Citizens Bank is focusing on integrating digital enhancements that cater to the needs of its customers.
Chris Powell, head of deposits and customer engagement at Citizens, has announced that the bank is investing in digital improvements, although the exact amount has not been disclosed. The bank's strategy revolves around hyperlocal personalization, data-driven customer insights, and an omnichannel experience, particularly for small businesses.
To fight silent attrition, Citizens is using complex internal propensity models to identify customers at risk of passive churn. Instead of relying on traditional "sticky" products, the bank provides highly contextual, value-added insights. For instance, alerting customers to duplicate transactions to help them save money, and suggesting opportunities to invest those savings.
Citizens is also focusing on omnichannel financial advice and digital-first business banking. The bank aims to combine technology with accessible human advice to serve small businesses across multiple channels. They are building digital tools aimed at younger, tech-savvy entrepreneurs while expanding geographically in growth markets.
The bank is planning major releases of advanced bill pay, online payment features, and small business-focused digital investments to enhance its platform and user experience.
Citizens has adopted Mastercard's open banking technology to reduce friction in account switching and onboarding, easing the customer journey and enhancing engagement. Open banking allows for easier access to financial data, enabling more personalized and integrated services.
While specific AI deployments at Citizens are less detailed, they align with industry trends where banks use AI-driven chatbots, automated service tools, and analytics to improve customer service efficiency and personalized interactions.
Citizens is also streamlining the account opening process to make it less complex, similar to setting up an iPhone. The bank is collaborating with fintech Pinwheel for the direct deposit account switching feature.
To encourage greater engagement, Citizens is offering a checking account benefits calculator designed to show customers how much they're getting from banking with Citizens compared to competitors, potentially boosting client retention.
Moreover, getting customers' direct deposits and handling their primary transactions digitally is seen as a stepping stone to establishing relationships. Offering insights, guidance, and advice to customers is one way Citizens aims to become the primary source of advice for customers on their financial journey.
The bank is also considering allowing customers to complete tasks like freezing a debit card directly through the chat interaction. Citizens sees potential in AI assistants handling tasks within the chat interaction, rather than directing customers elsewhere.
Citizens' non-interest expenses, which include salaries, equipment, and software, increased by 13% last year, according to its most recent annual filing. Despite this increase, the majority of Citizens' discretionary pool of capital is being directed towards such digital improvements.
Establishing relationships with customers is essential for gaining their trust for retirement offerings and other financial needs. Powell supports the Consumer Financial Protection Bureau's open banking rule, which aims to remove the friction of a bank switch.
In summary, Citizens Bank combines AI-powered data insights, open banking technology for seamless integration, and a human-plus-digital omnichannel approach, especially targeted to small businesses and a changing customer demographic, to enhance engagement and offer more tailored value in a competitive banking environment.
Technology plays a significant role in Citizens Bank's strategy to stay competitive, as they invest in digital improvements and build digital tools specifically for small businesses. The bank aims to combine technology with accessible human advice across various channels, thereby offering more personalized and integrated services to its customers.
