As we enter the fall season, aside from enjoying the cooler weather and back-to-school activities, many of us are looking ahead and making plans for 2025. In the banking CX world, next year promises to deliver a healthy amount of change, obstacles, and opportunities.
Here are a few topics and questions I hear across the banking and financial services world that could impact what we focus on in 2025.
How will a cresting interest rate cycle impact operations?
It’s refreshing to have consensus on at least one item: We all expect the Fed to reduce rates any day now. How deep and how many cuts is another question but get ready for a mortgage boom. Are you prepared for the volume coming to your contact center? Home buyers who have been holding back will be ready to pounce.
Increased liquidity can also mean more spending, which means more cards and more servicing activities. We have to be ready for more new card sales, more servicing activities, and unfortunately likely more fraud management.
How will consumers hold up in 2025?
The industry is pleased people are paying their bills but we’re really on the edge here. Consumers are stretched thin and those in the 30- to 39-year-old age bracket are sinking into delinquency faster than anyone. Many are maxed out on their credit and default rates are ticking up.
Enter the collections conundrum: How do you prepare for changes in collections activity? What offers are you willing to extend to consumers feeling the pinch? How aggressive should your strategy be? Is it centered on gentle payment reminders or focused on negotiating payment plans? It’s a fine line. Always important to have empathy to protect the customer relationship and we have innovative ways to accomplish this.
How much progress will we make in AI in 2025?
The opportunity for artificial intelligence to advance business objectives is alluring but many in our industry are still learning. One study found that executives, even those educated about generative AI, lack understanding about what AI can and cannot — or should not — do. A whopping 82% of executives surveyed by Forrester mistakenly believe AI is reliable at looking up and validating facts, for example.
Leveraging the power of innovative technology like AI calls for guardrails and the Consumer Financial Protection Bureau’s open letter to the industry contains noteworthy guidance. Are you satisfied your team understands the implications of AI in banking? The CFPB has some clear guidance on expectations for the use of AI and other new technologies in the financial services space.
2025 is just around the corner and promises to be another exciting year in the banking CX world. Let’s go!
