Revenue growth through innovation and excellence: The impact of augmented core & data in sales in retail banking

John Sculley is frequently remembered for the role he played in Steve Jobs’ departure from Apple in 1985, but during his tenure at the company, sales increased tenfold from $800 million to $8 billion. Steve Jobs famously sealed the deal to lure Sculley from Pepsi by saying, “Do you want to sell sugared water for the rest of your life? Or do you want to come with and change the world?” This was in recognition of Sculley’s considerable accomplishments at Pepsi, among which is the introduction of the Pepsi Challenge. Launched in 1975 to help Pepsi compete with Coca-Cola, the Pepsi Challenge is considered a landmark moment in marketing history, showcasing the power of innovative and consumer-focused strategies. The campaign was iconic, so much so that in February 2025, Pepsi announced the intention to bring it back – this time focused on its zero-sugar cola.

Interesting, but what has this got to do with banking?

Clearly, it demonstrates the impact that innovative strategies can have on sales and the way it is possible to reframe an argument – in this case, from brand to taste. It’s more about John Sculley himself and his view of the world, as demonstrated in this quote: “The future belongs to those who see possibilities before they become obvious.” Countless times throughout his career, he spotted possibilities before they became obvious. As the banking industry undergoes rapid transformation, and as banks must innovate and adapt quickly, seeing possibilities before they become obvious is a clear source of competitive advantage.

Technology can help. The integration of advanced technologies, including artificial intelligence, machine learning, and augmented reality, is transforming the way banks approach sales, customer service, and product development. New technologies help banks to create new products and services, deliver customer delight, and extract more value from existing offerings. According to McKinsey, global banking ROEs reached approximately 12% in 2023, significantly outperforming the 9% average from 2013-2020.

Traditional banking models, which have evolved slowly over time, are now under pressure to innovate rapidly. The solution lies in embracing a new paradigm: the "Augmented Core & Data" approach. This approach not only enhances core banking systems with advanced technologies but also positions banks for success in a future where adaptability and agility are paramount.

Imagine walking into a bank – physically or virtually – where the ‘walls’ come alive with a wealth of information curated specifically for each customer at that moment. Transactions, processed in real-time, often seem to occur before the conscious thought. This is not a scene from a futuristic movie but the reality that banks are striving to create. The integration of advanced technologies, the use of an augmented core & data approach, is transforming core banking systems into intelligent, proactive, and customer-centric platforms.

Creating New Products and Services

By integrating AI and machine learning into their core systems, banks can analyze customer behavior and preferences to develop new products and services that meet emerging needs. For example, AI can help identify trends in customer spending habits, enabling banks to create targeted financial products such as personalized savings plans or investment portfolios. Data analytics play a crucial role in identifying opportunities for innovation. By analyzing customer data, banks can uncover unmet needs and develop products that address these gaps. For instance, if data shows that customers are frequently using mobile payment services, banks can develop more advanced mobile banking apps with features like real-time transaction tracking and personalized financial advice. Most of this exists today, but imagine when bank staff are able to use intelligent assistants to ‘talk to’ their databases, pull data from external sources, and derive insights from the combination. Imagine being able to leverage technology to build and deploy a plan to drive up product penetration rates in underserved sectors.

Strategic Partnerships

Banks can also leverage partnerships with fintechs to accelerate the development of new products and services. Fintechs often bring agile development capabilities and innovative solutions that can be integrated into the bank's offerings, enabling them to expand into new market segments more effectively. Imagine Agentic AIs proactively suggesting potential partnerships – offering additional capabilities or new routes to market. Collaborating with fintechs is like a traditional car manufacturer teaming up with a tech company to develop self-driving cars, combining strengths to create innovative solutions that neither could achieve alone. Fintech partnerships are expected to help banks capture over 30% of the retail banking market share by 2030.

Delivering Customer Delight

Augmented Core & Data enables banks to deliver customer delight by providing seamless, omnichannel experiences. AI-powered chatbots and virtual assistants can offer real-time support, while data analytics help tailor services to individual customer needs. This not only enhances customer satisfaction but also fosters loyalty and retention. Personalization is key to delivering customer delight. By using AI to analyze customer data, banks can offer tailored recommendations and advice that meet specific financial goals and preferences. Real-time engagement through mobile apps and online platforms ensures that customers receive timely updates and support, further enhancing their experience. Continuous feedback from customers is essential for refining services and ensuring they meet evolving expectations. With intelligent assistants, not only is it possible for the feedback loops to be automated, but the time between the feedback and the action can be dramatically reduced. Think of AI-powered banking as a personal concierge service that anticipates your needs and preferences, ensuring a seamless and delightful experience every time you interact with your bank. A study found that 87% of banks prioritize customer engagement in their digital transformation plans, highlighting the importance of personalized and seamless experiences.

Enabling More Value Extraction

Banks can extract more value from existing offerings by using data analytics to identify opportunities for cross-selling and upselling. AI-driven insights can help sales teams understand customer financial goals and behaviors, allowing them to offer relevant products and services at the right moment. Predictive analytics is crucial for identifying potential sales opportunities. By analyzing customer data, banks can predict when customers are likely to need additional financial services, such as insurance or investment products, and proactively offer these solutions. Data analytics can also inform pricing strategies, enabling banks to offer competitive pricing that aligns with customer expectations while maximizing revenue potential. With the right technology, all these approaches, and many more, can be deployed, generating more value quickly. Predictive analytics can increase cross-selling and upselling opportunities by 20-30%, significantly boosting revenue.

Sustaining a Long-Term Competitive Advantage

By leveraging Augmented Core & Data, banks can sustain a long-term competitive advantage by continuously innovating and adapting to changing market conditions. This approach enables banks to differentiate themselves through personalized services, innovative products, and exceptional customer experiences. Fostering an innovation culture within the bank is essential for maintaining a competitive edge. Encouraging experimentation, learning from failures, and continuously updating technology and processes helps banks stay ahead of competitors. Banks must strategically position themselves to leverage emerging trends and technologies. This involves staying informed about market developments and integrating new technologies into their core systems to enhance customer experiences and operational efficiency. This is crucial from a sales positioning perspective – consider the bank that builds and maintains a reputation for innovation or for customer centricity. Just as the introduction of the smartphone revolutionized communication and access to information, the integration of AI and machine learning in banking is transforming how financial services are delivered, making them more intuitive and personalized. 85% of banking executives believe AI will be ubiquitous by 2030, driving significant innovation in product development and customer service.

Conclusion

The "Augmented Core & Data" approach is not just a technological upgrade; it's a strategic transformation that positions banks for success in a rapidly changing financial landscape. By leveraging this approach, banks can create new products and services, deliver customer delight, extract more value from existing offerings, and sustain a long-term competitive advantage.

In an era when banking is being reimagined every day, the future is not just anticipated but actively shaped. Banks that seize this opportunity will not only survive but thrive, offering personalized services, driving innovation, and redefining the role of banking in our lives. The time to build this new model is now. To do this requires a holistic view – covering people, process, and technology. Traditional core banking systems are rapidly becoming obsolete, unable to support the augmented core and data today’s customers expect.

As senior sales leaders navigate this transformation, they must focus on the levers they can pull to drive revenue growth. This includes leveraging data insights for innovation, delivering personalized customer experiences, extracting more value from existing products, and maintaining a competitive edge through continuous innovation. Moreover, they need to anticipate the future and ensure that technologies to ensure that they can move fast are put in place. By doing so, they can drive growth and tap into new revenue streams.