Union Savings Bank Boosts Customer Retention with AI

Union Savings Bank has leveraged artificial intelligence (AI) to significantly enhance customer retention and grow its deposit base, according to a new report by Celent. The bank, with $3.3 billion in assets based in Danbury, Connecticut, has seen remarkable results through the deployment of NGDATA's AI Hub, which has enabled the bank to identify 74% of likely churners and achieve a 79% accuracy rate in recommending the next best product for retention.

In an independent report titled "Targeted Customer Engagement in Retail Banking," Celent details how Union Savings Bank has integrated NGDATA's Intelligent Engagement Platform (IEP) and AI Hub into its existing infrastructure. This approach allows the bank to identify relationships at risk, understand the factors driving that risk, and engage customers proactively without disrupting existing systems.

Frank Sottosanti, Union Savings Bank’s SVP and Director of Brand & Innovation, praised the AI capabilities, saying, "NGDATA's AI capabilities have significantly enhanced our customer intelligence. Their predictive models help us identify retention opportunities and uncover the next best products for our customers, allowing us to deepen relationships through more personalized and timely engagement."

The report highlights several key achievements. USB's attrition model has achieved a 74% churn catch rate, while its next-best-product recommendation accuracy stands at 79%. Additionally, targeted Certificate of Deposit (CD) renewal campaigns have resulted in a 90% retention rate. These metrics address the critical question for banks: how to identify at-risk relationships and, once identified, what actions to take.

Union Savings Bank's approach is to connect prediction with action. When early warning signals are detected, the platform can initiate a targeted customer journey with personalized retention or promotional outreach designed to address the underlying cause and re-engage the customer.

Michael Bernard, Principal Banking Analyst at Celent, notes, "The firm's Intelligent Engagement Platform allows community and regional financial institutions to 'leapfrog' up to the capabilities of much larger banks." This platform activates existing customer, account, product, and transaction data, applying predictive models to inform subsequent actions and interactions.

The bank’s strategy also includes using explainable AI to provide clear insights into the factors behind churn predictions. This helps the digital product and marketing teams understand the reasons behind customer risk, enabling them to act decisively.

Douglas Gross, CEO of NGDATA, emphasized, "Community and regional financial institutions already have decades of customer and transaction data that can help them compete on relationships, not just products. The opportunity is to activate that data so teams can anticipate financial needs, advise proactively, and engage customers before the relationship is at risk. Union Savings Bank demonstrates what that looks like in production—measurable intelligence that helps strengthen the trusted relationships customers expect from their financial institution."

Union Savings Bank’s innovative use of AI is not only improving customer retention but also enhancing the overall customer experience. By leveraging existing data without the need for a disruptive overhaul, the bank is setting a new standard for community and regional financial institutions.

The full Celent Solution Brief, "Targeted Customer Engagement in Retail Banking," is available for download on NGDATA's website, detailing USB's deployment and the broader opportunity for financial institutions to use AI to improve retention, relationship growth, and Customer Lifetime Value.