5 Steps to Personalized Banking Success

3 Reasons You Should be Ssing Personalized Banking and How to Get Started

Why is personalized bankingimportant? At the core, personalized banking can differentiate you from the competition, and draw on the emotional connection with a prospect or account holder to build a tenured relationship.

Account holders want to feel like you are personally talking to them and they expect it.Fifty-six percent of customers expect offers from companies to always be personalized. Account holders want to be valued and treated as an individual. Consumers have different preferences and interests, and if you can tailor a user's experience based on what they need, want, or are looking for, they will be more likely to engage and continue to grow their financial product portfolio with you.

Personalized banking offers an advantage to meet the account holder where they are and deliver the right message at the right time. It builds stronger relationships and trust and will make your account holders feel valued, which will increase their product and channel utilization, ultimately contributing to revenue increases and growth. It also gives your institution a competitive advantage - there are banks and credit unions in the market not focusing on this tactic.

Digital banking Americans who are completely satisfied with their digital banking user experience are most likely to recommend the provider to friends and family, try, use, or engage with other digital banking products from that provider, and be more likely to be loyal to the provider.Additionally, your financial institution can become leaders in the market by using your ecosystem's transaction data or artificial intelligence (AI) in banking to reveal behavioral insights and build these relevant messages.

The Top 3 Reasons Financial Institutions Should Implement Personalized Banking

Improve account holder experience

Eight percentof consumerssay the experience a company provides is as important as its products and services. Account holders want an easy and quick user experience. They don't want to have to go through a bunch of webpages to find an answer. This can cause frustration, confusion, and more support tickets.

Society is always moving quickly onto the next task, meeting or event.. Customers and members' financial behaviors change and evolve over time, and they want (and expect) their primary financial institution to change and evolve with them. They expect quick response times when trying to solve a problem or find an answer. When you use personalized banking tactics, your financial institution can show that you understand your users' needs, you can meet their demands and tailor their experience to what they are looking for. Through personalized banking, your financial institution can improve both the support and user experience.

Build account holder and member loyalty

Eighty-eight percentof consumerssay good customer service makes them more likely to purchase again.Personalized banking can help your financial institution retain account holders and build trust with them; fostering loyalty. When using transaction data from your account holders, your engagements and messaging becomes significantly focused and relevant to the audience. Consider an account holder that is showing multiple overdrafts, multiple late payments on their consumer loan and buy now pay later transactions - this account holder may be in financial stress and would benefit from an engagement around consolidation support or education tools. This demonstrates to the account holder that your financial institution took the time to understand them and suggest products and services that will support them throughout their financial journey.

Increased Satisfaction = Increased revenue

Happy account holders = increased revenue. Seventy-three percent of millennials (28-44) think a bank or credit union's digital banking experience today reflects how much they care about their customers or members, the highest of any generation.If your customers and members are happy, they are more likely to purchase again, adopting additional products, growing share of wallet with your financial institution, as well as encouraging them to tell their peers about their positive experience banking with you. This can increase revenue, accelerate acquisition rates, and enhance brand reputation.

5 Steps to Create Personalized Banking Experiences

By unlocking data, you can create hyper-personalized marketing campaigns within minutes. The revenue generated from these campaigns can be used to fund other initiatives within your institution. Marketing for financial institutionsis no longer a cost center, but a significant profit generator.

Your institution has so much transaction data from your account holders. It's time to use it. But how? And where do you start?

• Leverage and connect your data
  1. • Financial institutions can leverage clean, tagged data through transaction enrichment to deeply understand account holders, without receiving personal identifiable information.
     • Connect your data from different sources for a unified, complete view.
     • Better understand your users by asking "What are their preferences? What are they looking for?"
     • With actionable insights to make data-driven decisions, create personalized banking experiences, and deepen relationships.
     • Use competitive intel to go after share of wallet

• Use predictive modeling to know what's next
  1. • Artificial intelligence in banking isn't a nice-to-have anymore. It's a competitive advantage financial institutions can leverage now.
     • Anticipate your account holders' journeysto increase product adoption, enabling you to stay top of mind and achieve primary financial institution status.
     • Use AI to drive personalized marketing, and make the right offer to the right person.

• Define areas of impact:
• • • Determine what elements of personalization can make the fastest, greatest impact on your account holders' experience.
    • Where are your account holders spending the most amount of time? Where are they running into obstacles? What are they contacting your support center for and if fixed, would save time?
    • Seventy-four percent of consumersexpect to be able to do anything online that they can do in-person or by phone.
• Start small and expand
  • • Personalization can sound like a daunting task if you think about all of the different ways you can personalize the experience for every website visitor. However, it doesn't have to be. Start small. Pick a small segment of account holders or one area of your website to start.
    • Scale personalization with always-on campaigns. This means you can set up as many campaigns as you want at one time, and the system automatically places account holders in and out of campaigns as their behaviors change, saving you time manually updating the campaigns.
• Launch, test and learn and then optimize
  • Personalization is not a one and done experience. And it doesn't have to be perfect to start. Run a small test on a segment of account holders, learn from the results and optimize. The data will tell you what's working and not working, which takes the guesswork out. What you think might work or what users want might be completely different.

Forty-four percent of digital banking Americans wish their financial provider offered a more personalized digital banking experience, including 56% of younger Millennials (28-35) compared to 28% of Boomers (59-65).Marketing for financial institutions drives revenue and growth by leveraging actionable insights to create personalized banking experiences and deepen relationships.

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