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Personalized Banking: The Key Mantra to Enhanced Consumer Experience

Whether you are thinking of getting a certain device from Amazon or if you are thinking of watching a new series on Netflix, whatever you look for in the search engines is saved. 

You keep on seeing pop-ups and advertisements on your screen according to what you look for on the internet. This is because AI keeps on having track of all your actions and it keeps on utilizing technology to offer you a customized experience

Consumers expect the same when it comes to banks and financial institutions. Just a small chat with your AI assistance for sorting out a doubt or offering discounts periodically does not really satisfy them any longer.

After all, the other domains have exceeded their expectations and that is what has made them anticipate more from the financial sector too. But the banks are lying far behind even though they have access to all the tracks of their consumers’ data.

Image Source: Tearsheet

In order to meet the expectations of your clients, it is high time to offer them a personalized banking experience. Or else, you are going to lose them even before you think of improving your services. 

But what is this concept of personalized banking and how does it work? Read ahead to get a basic vision of this idea and start making changes to your services right away!

What is personalized banking?

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In order to figure out how you are supposed to offer a personalized banking experience to your clients, you must get a clear concept of what personalization is. It is not that you can just strategize your actions and improve the marketing techniques. 

Marketing your services is just a small portion of this whole thing. Before that, you need to figure out how you can utilize the customer interactions and their data to transform your services into something completely unique. 

With the assistance of AI and data analytics, you need to have the capability to understand your customers’ needs and what their next steps can be. You need to alter and modify your technological assistance in such a way so that you can serve the needs of your customer even before they can think that they might need it. 

The FIs which are capable of anticipating the next move of the consumer are surely going to gain the trust in no time. Offering a customized experience to your clients will not just help you build a strong relationship with them. Rather you can be on the safe side when it comes to being a step further from your fellow competitors.

Is personalized banking the future of FI?

Bank customer satisfaction ratings have remained low for a long time now. Moreover, according to 2020 survey data from Accenture shows that the number has declined drastically. Just two years ago it was 43% and it has slipped to 29% at present. Why so?

As stated earlier, the consumer expects a lot more from their fundamental FI than what they are getting for the past few years. Digital banking is going to be here for a long while. Therefore it is high time to utilize the customer data which you are having for improving their satisfaction rate. 

Many banks did put in personalized guidance as to their basic goal for 2021. But most of them admitted that they have no clue about which tool to incorporate to bring in those changes. 

The year is about to end, and there is still enough time to figure out how to improvise your facilities. You are having all the customer data at your fingertip. Just utilize it in the right way and upgrade your systems.

When it comes to offering a digitalized customer experience, you do not need to get rid of the traditional methods completely and bring in a new setup. Whereas all you need is to introduce some new ideas and improve your tech assistance. Reshuffle the revenue-generating financial products and make sure to present the right offer to your customers at the perfect time.

A Rough Idea to Gear up your facilities for the future

According to the data provided by the Financial Brand, 64% of your customers expect a customized service on the basis of past interactions. It is not that hard to meet their expectations. Therefore here are some of the concerns which you should think about to improve your amenities:

  • Adopt a people-first mindset

Customer journey optimization is one of the easiest ways to keep a track of their buying behaviors, the preferred mode of payment, and every other detail which they access on a daily basis before seeking your assistance. You can strategize a customer-centric approach in a proper way if you can map the customer journey in the right manner.

  • Get a stronghold over the customer data 

Get in touch with a platform or improve your data collection methods in a way so that you don’t need to bug the customers with the same question frequently. Make sure to update and keep proper track of their details.

Mostly, it is found that the clients get disgusted when they are made to answer the same set of questions repeatedly. Be it while opening an account or applying for a loan. Every time they seek your assistance, make it a point to modify it whenever a customer interacts with you.

  • Incorporate customized touch and AI analytics

Only 36% of your customers feel the need to talk with a real person to sort out their issues. Whereas around 71% of them are open to getting automated messages for guiding them to use your services.

Self-services are the most preferred option right now and it is only a handful of consumers who prefer to seek help from your customer care crew. You can minimize your customer support team or maybe employ them in some other place if you seek the assistance of technology to reduce their work.

 

How can the personalization of banking services be a competitive advantage?

The moment you start tailoring your customers’ financial needs in a proper strategic way, you will manage to reach a few steps ahead of your competitors even before you realize it!

Here are some of the points which you need to take into consideration for optimizing your services:

  • Hold on to your consumers through the strength of your brand and by adding the perceived value.
  • Take the help of surveys and third-party service providers to understand the demands of your clients.
  • Make sure your customers feel valued and therefore frame your services in a customized way so that they feel that your FI knows them well.
  • Strategize your products in such a way that your consumers find it difficult to replace them with another bank.

 

The Bottomline

Working on customer satisfaction and improving brand loyalty will take a long time if you don’t follow the right set of steps. Using customer data, an advanced form of data analytics and API platforms will help you to position your resources and services in the perfect way according to the needs of your customers. If you are still not confident enough about incorporating AI and adding a customized touch to your financial products, seek assistance from Pirimid. Their seamless service will definitely boost your profit and will help you to serve better to your consumers as well.

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