The Data Driven Approach to Customer Experience in Banking
In a digital world, customers expect banks to connect all the dots and deliver omni-channel experiences that are seamless, personalized, and yes, delightful. Whether your customers visit branch locations or engage on mobile apps, it’s essential that at the enterprise level, you're able to understand and anticipate their needs.
Understanding your data is key to this kind of responsiveness. When you’re able to harness data and segment customers in new and exciting ways, target the right markets, and offer relevant products at the right time you can drive new opportunities, generate new revenue streams, and increase the value of every customer.
"Data-driven organizations are 23 times more likely to acquire customers, six times as likely to retain those customers, and 19 times as likely to be profitable as a result."
But due in part to banking's regulatory environment, embracing innovation has never been easy—and becoming a data-driven bank is an initiative rooted in innovation. According to JP Nicols of FinTech Forge, “managing innovation is different” than managing your core business, or even IT. “Test and learn" goes against the certainty of traditional decision making in banking, where being right 99% of the time is the norm.
Culture change is hard, and it’s difficult for banks to venture into uncharted waters. But there are other concerning trends that just may force banks to lead with innovation. Today’s banks face very real economic pressures: according to a 2014 McKinsey study, just 18% of banks captured all the value in the industry. Of the top 500 institutions, globally, 54% were priced below book value. Compound that with recent findings that bank reputations have declined for the first time in five years, and it’s clear that the time is now to leverage one of your organization’s most important core assets—data—to build a modern, customer-centric banking experience. Understanding your operations at the customer level is really table stakes in today’s competitive banking industry.
So how are innovative banks seizing the potential of data? How should your organization be thinking about data? Here are three insights into how data is truly changing customer experience in banking.
Read our whitepaper and learn how future-facing banks are using data analytics to create innovative and profitable products and services, while delivering the relevant experiences that customers expect.