In banking, personalised services are slowly becoming a means of survival. Most banks, however, still don’t know how to even get started. Here’s some #inspo.
Banking services fully tailored to personal needs and wants? Customers certainly like the sound of that. One in two say they’d be happy to receive personalised financial advice from banks such as reports on their spending habits and advice on how to manage money, Accenture’s 2019 Global Financial Services Consumer Study has found. So much so that many of them can see themselves banking with a tech company like Amazon, Facebook or Google, should they enter the financial services arena.
Banks and other financial institutions seem to be finally catching on to the new rules of the game. More than 40% of financial services companies consider delivering personalised experiences in real time their most exciting prospect for the next couple of years, a recent Econsultancy study has concluded. That’s all fab but do they deliver? You might wonder. So did Pegasystems Inc. who found that 94% of banks haven’t quite figured out personalisation yet.
So here are five uses from those who have.
- Direct Assurance has introduced a programme called “YouDrive”, which connects a DriveBox device to customers’ cars that records events during every journey and generates a score after each ride. The higher the score, the lower the premium. “Personalized services should also demonstrate added value. It is not enough just to tell consumers how they are spending their money. Instead, providers should show them how they can save money and take advantage of offers,” Accenture adds.
- Bank of Ireland has been merging online and offline data to boost customer engagement. Having taken a leaf out of tech giants’ book, it started using tagging and tracking tools to personalise e-mail messages and omnichannel branch experiences. These efforts certainly seem to have paid off: there has been a 278% bump in application submissions across digital channels. Plus displaying personalised content has helped the bank raise personal loan digital application submissions by 15%.
- Capital One in the US has been working together with analytics platform Foursquare to develop a solution that uses location-based customer data to send out real-time mobile banking app notifications to clients who shop at partner retailers. Capital One has been reportedly beta-testing location-based offers for more than a year, with the ultimate goal of driving up adoption of its cards at selected retailers and in selected purchase categories.
- Bank Zachodni WBK in Poland has rolled out its Neo Intelligence project to learn more about customers by analysing their social networks and observing their online community activity. They’ve assigned social roles, such as leader or follower, to bank customers to grasp their motivations and target them with relevant offers and services. The project both supports customer acquisition and helps strengthen the bank’s relationship with its most valuable clients. The effectiveness of the campaign has increased 15-fold, while total responses have doubled.
- HSBC has been using AI to give US credit card customers a personalised shopping experience. It’s working on a rewards program that processes customer data to predict how clients will redeem their credit card points so it can better market offerings such as travel, merchandise, gift cards and cash. The technology recommends a redemption category for each credit card holder. HSBC has sent out emails based on these recommendations, while also emailed a random category to a control group. In the former batch, about 70% jumped at the rewards and the number of opened emails rose by 40%.