In Banking, Customer Intelligence & Insights, Retail

Hyper-personalized Customer Experience

As an avid traveler, I take great pleasure in discovering traditional cuisine and exploring local architecture. During a recent trip in Florence, Italy, I was able to try new dishes and visit the city’s incredible museums at a fraction of the price thanks to the relevant and personalized offers I received from my bank offered throughout my journey.

A couple of months back, I was offered a travel reward credit card, one that fit my habits and purchase behavior and that came with standardized benefits (travel insurance, cash back rewards…). These perks are attractive but what truly makes this credit card so special are the customized, contextually relevant offers I received that not only provided cost saving opportunities at the many restaurants and museums Florence has to offer but also allowed me to discover local places I would never have known of.

These curated promotions and custom experiences are transforming banks from simple providers of basic financial services into financial partners that help customers throughout their financial journeys, enabling them to realize their broader goals, whether it’s to identify travel opportunities, find and finance a new house or lower insurance premiums. Banks are becoming more and more relevant by bringing extra value to their customers.

Amid stiff competition from big tech players like Google that are moving into the Banking & Financial services verticals and new Fintech entrants, it is imperative for mid-size banks to step up their game to meet the rising expectations of customers. The challenging macroeconomic environment pressuring banks’ net interest margin, the changing customer behavior and the evolving regulatory landscape are all factors that will accelerate market consolidations and only banks that are quick to adapt will survive intact.

Given the resource gap with bigger players that are pouring billions of dollars into digitizing the customer journey, it is crucial for smaller banks to invest strategically and play on their core strengths to remain competitive. Regional banks have always succeeded in maintaining close connections with their customers, but digitalization is now allowing larger players to also build special relationships, at scale, with their clients. To remain competitive and keep that proximity with the customers alive, whether it is online or offline, mid-size banks need to develop their data infrastructure and analytics capabilities to deliver a 1:1 contextualized and personalized experience.

With the right tools and technologies in place, mid-size banks can build detailed personas using the data generated (including online interactions, geographic information and aggregated debit or credit card usage) and apply analytics, down to the level of a single individual to predict customers’ needs and desires and determine the most relevant next offer.

Today, delivering a hyper-personalized connected customer experience is a necessity for banks to stay relevant. The banks that develop customized products and leverage technology to manage and deliver the right offers to the right customers at the right moment will be the ones that succeed in attracting and building lasting relationship with their clients. Offering a pertinent and seamless customer experience while concurrently ensuring client privacy will bring banks closer to their customers, build trust and dramatically boost satisfaction.

Fortunately, TCS Customer Intelligence & Insights for Banking, an enterprise insights platform can help banks orchestrate this kind of scenario and deliver cutting-edge personalization to stand out from competition. TCS Customer Intelligence & Insights for Banking allows banks to ingest data from various sources (digital, physical, IoT…) and leverage it with out of the box use cases allowing a fast and effortless implementation.

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