Personalization in Banking: From Novelty to Necessity
?? Jim Marous
Top 5 Retail Banking Influencer, Global Speaker, Podcast Host and Co-Publisher at The Financial Brand
Consumers want their financial institution to understand their needs and deliver personalized offers. Most banks and credit unions are unable to deliver on this 'personalization promise'. What are the personalization gaps and how can the banking industry respond?
By Jim Marous, Co-Publisher of The Financial Brand and Publisher of the Digital Banking Report
The financial services marketplace is becoming increasing competitive with fintech start-ups and, to a certain degree, major technology firms such as Google, Apple, Samsung and others. The consumer is also becoming increasingly demanding around their expectations for a more personalized digital experience. As we move forward, where are the “gaps” between what consumers want and what financial firms can deliver?
In an unprecedented research initiative, sponsored by Personetics and supported by the global market research leader GfK, the Digital Banking Report has surveyed both consumers and the global financial services community to determine the key beliefs, behaviors, trends and priorities related to personalization of the banking relationship.
The 64-page Digital Banking Report, The Power of Personalization in Banking, provides a very specific road map for the implementation of digital personalization initiatives and answers questions regarding what consumers value most. The report also provides in depth analysis of how prepared banks and credit unions are to deliver on the ‘personalization promise’ and the gaps that must be addressed. The good news is that consumers indicate they are willing to share information about themselves to narrow the gap.
Key takeaways of the report include:
- The consumer is concerned about their finances and looks to their primary financial institution for personalized solutions and advice.
- While the relationship between the consumer and their banking organization is still strong, new fintech players and non-financial firms are upping the ante with highly customized digital solutions.
- Financial institutions overestimate how consumers view their relationship with banking. This creates a false sense of confidence and may delay the prioritization of leveraging advanced analytics.
- The majority of financial institutions of all sizes are unprepared to provide personalized advice, communication and offers.
- Alternative financial providers are seen as a threat to most legacy banking organizations due to their ability to provide
digital personalization. - Personalization across all stages of the consumer journey will be a key differentiator for banking in the very near future.
Click Here to Download the Personalization Research
To read the rest of the article on the research done to evaluate the consumer demand for personalization and the banking industry's response, go to the complete article here ...
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Head of Treasury at PHH Group
8 年“The financial services industry will move beyond omnichannel banking and more fully realize that financial institutions can use data and interactions, regardless of channel, to genuinely connect with consumers on a more emotional level. This includes predicting consumer needs and serving in more of an advisor role.” – Bryan Clagett, Chief Marketing Officer at Geezeo
Assistant General Manager (Head - Credit Risk) at South Indian Bank
8 年Banks may not have prioritised advanced analytics yet, but it will only take a couple of hugely successful banking cases for banks to shed their inhibitions. This is the case at least in this part of the world. As far as failure in providing personalised advice is concerned, I think it is down to lack of expertise.
Very insightful as always Jim