How to deliver hyper-personalized experiences in digital banking?


The trend of tailored, personalized experiences in banking didn't appear overnight. Before digitalization, consumers tended to use the services of banks, where they knew tellers on a first-name basis as they were members of the same community. Times have changed, but the demand for a personalized approach and customization based on particular client needs remains. The era of digital banking revolutionized the financial industry, raising new questions of accessibility, adaptability, and perpetual customer assistance. In the past couple of years, the pandemic only strengthened the bond between consumers and the digital space, thus increasing the urgency of the issues at hand. As we know, modern problems require modern solutions. This is where personalized banking experiences come into play.
What is personalization in banking?
It is the latest step in the evolution of the fintech industry and how your firm may assist users in proactive financial management. By gathering and analyzing highly pertinent data via various digital banking platforms, banks determine their users' underlying needs, sometimes even the subconscious ones.
The data will then be linked to analytics, artificial intelligence, or machine learning algorithms to forecast possible scenarios and solutions. Consumers increasingly want more from their major financial institutions than simply knowing how to call them by name in a support chat or the occasional semi-personalized discount on a financial product. Personalization for each user is the future of banking.
Benefits of personalization.
The habits of using online tools for financial management developed during turbulent pandemic times are not expected to change anytime soon. The research shows that most users intend to keep using their mobile devices to perform the necessary tasks. Thus, the personalization of digital banking is the key to customer satisfaction and loyalty.
It can also contribute to significant reductions in costs and enhanced revenue opportunities. The gathered data can pave the way for a more meaningful user experience and noticeably decrease wasted resources.
Also, personalization can boost customer loyalty. Providing an efficient, tailored and accessible online service negates the user's need to visit a branch. A personalized experience can not only provide users with the options they need but also use the data to anticipate any further requests or issues they might have, thus ensuring customer satisfaction.
The process: three crucial steps
The journey to providing the most meaningful, tailored banking services lies in these three steps.
    Gathering the data on one platform
    Most financial institutions have their data dispersed between several platforms and clouds. The key to getting the most accurate understanding is to bring it all to one place where it can be organized and structured. Only then can it be analyzed and studied to gain actionable insights.
    AI analysis
    As data quantities have grown exponentially, AI has become both an opportunity and a requirement. The proper technology can sift through your data, give stunning patterns and insights in profiling, and match the relevant offerings to your customers. It must be transparent, secure, integrated into the bank's infrastructure, and linked to your marketing tools. It is crucial to remember that AI tools are there to assist data scientists, not to replace them. Evaluation of created solutions is an essential step in the process.
    There are many ways to create specialized business solutions using data and AI-driven insights. Here we want to list several that would be reasonably easy to implement:
Personalized campaigns
Plenty of insights can be extracted from customer data analysis itself.
Their behavior, preferred means of communication, and priorities can be mapped and summarized for tailored campaigns, which may increase conversion rates and customer engagement.
Detection of fraud and risk
Data insights can also help you identify possible risk elements, such as time spent filling out an online form, missed loan payments, credit limits that are too high, having several credit cards, and other digital activities.
Using dynamic changes to reduce attrition rates
A high churn rate jeopardizes the success of your marketing and customer service activities. With big data and AI, you can do a detailed analysis of support calls and chats to detect unsatisfied or disengaged customers, then adapt your offerings to keep them from opting out. You may use predictive analysis of trends or client requirements to understand your customers better and approach them with what they need.
Best practices.
The main principle lies in establishing user-centric alignment throughout the whole process of personalization. The following principles will help you navigate your cross-functional personalization and suitable technological investments:
  • Determine your user base and research the needs and expectations of your target audience.
  • Recognize the shift in expectations by identifying the user behavior changes that are likely to last and those that are only temporary.
  • Prioritize investment in technology; evaluate and determine the one that improves your business's efficiency, accessibility, and user experience.
  • Develop the most suitable strategy for your business model that will be dynamic to adjust to market changes.
  • Incorporate a personal element by optimizing and improving your users' digital banking experience.

Due to legacy systems and conservative business structures, the banking sector is known for reacting slowly to changing customer needs. However, the global pandemic and the rapidly growing influence of the digital space have heightened the importance of personalization. We believe that a user-centric, dynamic approach is the key to remaining viable in the current market. Fortunately, such technological advancements as machine learning, big data, and location-based solutions make personalized banking more attainable than ever.
If you have any questions regarding how your company can benefit from hyper-personalization, do not hesitate to reach out. The Gitmax team is determined to help your business on your digital transformation journey.

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