Financial institutions integration of client validation tools and sophisticated marketing strategies has been long documented. Responsiveness to consumer demand has been one of the distinctive features of successful FIs in our recent history. While this is true, the article hones in on a perceived shortcoming in many FIs, across the value chain, in delivering the personalized service. Technology has opened the door to delivering high touch individualized engagement using data that characterizes private banking, but to the wider public in a cost-effective way.
Understanding a customer’s needs has never been part of a bank’s business model. Investing in the right technology to put the troves of big data to better use is a way for banks to evolve, quickly. Ultra-personalisation cannot be achieved by a bank with the use of internal data alone. The growing pool of external data needs to be tapped into,and combined with internal data.
Mercator Advisory Group assesses the automation of banking service delivery and the increased symbiosis between human and machine learning enabled data tools presents FIs with opportunities to enhance and expand their level of engagement. However, to do so represents a fundamental alteration in many FIs mission making the consumer the central focus. While the author may be a bit cynical in stating the absence of attention to “customer needs”, the sentiment of need truly taking on a customer-driven service mentality is well on the mark. Already we are registering the expansion of consumer advocacy tools and solutions within FIs to promote financial wellness and achieve personalized goal. By address the holistic consumer, FIs will be well served and better positioned to deliver and maintain comprehensive financial solutions to individuals.
Overview by Joseph Walent, Associate Director, Customer Interactions Advisory Service at Mercator Advisory Group
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