According to Salesforce, 72% of consumers and 89% of business buyers expect companies to understand their unique needs and expectations, while 66% of consumers say they’re likely to switch brands if they feel treated like a number, not an individual.
Most consumer banking products are highly commoditised and it’s impossible for banks to dedicated countless staff hours to offer highly personal banking experiences, except for the VIP cases. Yet technology can enable greater personalisation of commodity services such as banking in many different ways, including:
Technological innovation is driving change in retail banking, including an emphasis on personalisation – banks must keep pace with this change or risk losing customers to fintech challengers, or face getting cut out altogether as technology enables disintermediation.
BCG estimates that for every $100 billion in assets that a bank has, it can achieve as much as $300 million in revenue growth by personalizing its customer interactions.
By 2023, the majority of organizations using AI for digital commerce will achieve at least a 25% improvement in customer satisfaction, revenue or cost reduction, Gartner says.
Personal banking service delivers a better customer experience across human and digital channels. Here’s how:
Consumers may rarely change banks. Nonetheless they frequently interact with their banks. A bank stands to lose substantially if and when customers decide to switch. Furthermore, banks that can build a reputation for personalized banking will enjoy big wins as new customers sign up thanks to referrals.
There is, however, a real hurdle when it comes to rolling out personalised retail banking. A tightening compliance and security environment makes the level of data sharing and processing required by personalized banking much more challenging than it would otherwise be.
And, of course, the most personal banking service in the world can quickly be undermined if consumers fail to trust a financial institution. Banks need to remain cognizant of three key areas:
That said, with the right measures in place banks can deliver incredibly personal experiences without exposing consumer’s trust to any degree of risk.
At ELEKS, we have assisted countless financial institutions, including banks, to make the best use of digital innovation. Get in touch with us to find out how we can harness Data Science and latest fintech trends to deliver a more personal banking experience across your customer base.
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