Overcoming the challenges of personalisation in banking

Hideki Hashimura

CRM/CX Strategist & CMO

redk CRM Solutions

Hideki Hashimura, CMO at redk, explores how banks can integrate AI into their personalisation efforts to offer better customer service. 

Customers expect the same personalisation efforts across all businesses – whether it’s food delivery, streaming or banking. Consumer expectations are higher than ever, and the financial services industry is grappling with the challenges of tailoring a service to individual needs.

Personalisation is essential for customer satisfaction and loyalty in many industries, including banking. Financial service firms need to understand the entire customer journey from start to finish to stay ahead of the competition. And in today’s digital world, the competition is not just the banking industry.

In this piece we explore how financial institutions address these challenges through innovative approaches like AI-driven analytics tools and data-sharing strategies.


Financial institutions have fallen behind other industries in effective personalisation

Banking is a core part of daily life – whether you’re tapping Apple Pay for lunch or budgeting for an upcoming holiday. However, financial services firms continue to lag far behind other industries in providing meaningful personalisation initiatives.

Customers have come to expect targeted product recommendations and automated advice tailored to their needs and preferences in almost every other sector. But financial institutions still largely focus on one-size-fits-all solutions that drastically reduce customer satisfaction.

In fact, Salesforce, found that poor personalisation of customer experiences is one of the main pain points that financial services need to address.

To remain competitive, these companies must invest in data-driven insights and technologies to better understand and serve their customers.

For example, predictive analytics can help unlock the power of data to deliver more personalised services. With an increasing focus on personalisation through advanced technology solutions, financial institutions will finally be able to offer the level of service customers have come to expect.


Understanding customer preferences and developing tailored experiences 

Last year, Salesforce revealed that 66% of customers expect companies to understand their needs and expectations in their State of the Connected Customer report.

Getting to grips with what your customer base has never been more important in the financial world.

Financial service institutions need to start improving customer engagement and customer value with a top-notch personalisation strategy.

Once you start understanding customer preferences, you can deliver tailored experiences that build meaningful customer relationships.

Customers will come back time and time again to a financial institution committed to providing a reliable, consistent, and personalised experience. It’s that simple.


Meeting customers’ expectations through personalised data-driven insights 

The need to meet customer expectations has never been greater in today’s modern business environment. Data-driven insights provide a personalised approach to achieving better customer experience outcomes.

With ever-changing consumer trends and preferences, companies must use advanced analytics to inform their decision-making and ensure they are on top of what customers want. This could involve utilising data analytics to develop smarter product offerings, delivering superior experiences focusing on customer pain points, or uncovering trends before competitors to remain ahead of the game.

All this is possible through personalising the approach based on data-driven insights. The power of these insights lies in utilising them as an isolated tool and integrating them into everyday business operations to become second nature – leading financial companies along the path of success and customer satisfaction.


Balancing speed and accuracy for personalised customer service 

Providing personalised customer service is essential to keeping customers happy and loyal, but it can seem like a tricky balancing act between speed and accuracy.

On the one hand, you want to respond quickly enough that the customer feels taken care of in a reasonable timeframe. On the other, you must ensure your response is accurate and tailored to their needs.

With some careful planning, however, it’s possible to provide both fast and attentive service that will help make your customer interactions unique and enjoyable.

From streamlining processes so you can respond quickly while maintaining accuracy to customising messages with the customer’s name, there are dozens of ways to balance speed and accuracy in personalised customer service.


Making use of artificial intelligence to gain a competitive edge in the market 

The business world is ever evolving, so companies must stay ahead to remain competitive. One way to do this is by incorporating artificial intelligence (AI).

AI can provide expansive opportunities for businesses to gain an edge by providing a range of benefits, including improved efficiency, increased accuracy and reduced labour costs.

By leveraging AI, organisations can unlock predictive analytics, which can help to determine the best course of action for various tasks, from pricing optimisation to customer service to workflow processes – ultimately leading to an improved user experience and higher ROI.

The AI revolution has arrived, and its far-reaching potential for innovation makes it an essential tool for gaining that critical competitive edge in today’s markets.


Keeping up with the ever-changing technology landscape 

Keeping up with the ever-changing Fintech landscape can be daunting for any individual, business or organisation.

With new advancements and innovations released daily, staying ahead of the curve is essential to remain competitive.

It is often overwhelming to stay current with the vast number of advances being made in the tech world. However, by staying informed through news updates, attending workshops and seminars, and participating in forums and other activities, you can better equip yourself to tackle technical issues that arise due to these changes.

Outsourcing tasks or utilising intelligent automation can help alleviate some of the pressure associated with keeping up with fast-paced industry developments. Undoubtedly, the challenge may be difficult, but this growing sector provides an exciting opportunity for growth for those willing to take it on.


Establishing ethical guidelines for ensuring customer privacy and data security

Protecting customer data and privacy is vital to excellent customer service, but establishing ethical guidelines can be complicated. Businesses can take some important steps to ensure they are meeting the highest standards in this area. Contracting independent auditors to review customer data processors and storage practices regularly is a great way to verify that customer information is being handled correctly.

Additionally, having clear language in the Terms and Conditions of user agreements ensures customers know exactly what information is being collected, how it’s being used, and how long it will be kept on record.

It’s important for companies to remain transparent with customers and communicate if changes are made to policies. Adding encryption measures for digital payment transactions is another way businesses can remain open and honest about their security practices. It sets an example in the industry on protecting people’s confidential information from falling into malicious hands.


The future of personalisation in financial services is looking bright

It has significant potential for customers and companies, offering customers more convenience and control over their finances. However, it is important to remember that the effective delivery of personalised experiences requires a comprehensive understanding of customer preferences, data-driven insights and effective management of customer privacy and security.

Having the agility and clarity to respond quickly and accurately to changing tech trends will separate those organisations that embrace digital transformation from those that simply react to it.

Companies should strive not only to accelerate the value they offer customers with personalised services but also consider ethical considerations such as customer privacy, data security and trustworthiness to remain competitive in this fast-moving and increasingly connected world.

Previous article

EVENT SUMMARY: Advice and guidance - fix or fudge?

Next article

The Next Generation Summit: Building the skills to be a future marketing leader

Get access to valuable thought leadership from the financial services marketing industry

Keep up-to-date with current trends and changes across marketing and financial services is vital in this fast-moving business environment.