Banking customer analytics are becoming increasingly important as financial institutions seek to better understand customers and deliver more relevant products and services. Banks have access to enormous amounts of customer data, but the competitive advantage comes from effectively analyzing that information and turning it into actionable insights.
As consumers become less dependent on a single financial institution, banks must understand individual behaviors, preferences, and changing financial needs. Analytics and automation can help institutions identify important moments in the customer relationship and deliver appropriate offers and services when they are most relevant.
The recently published collaborative whitepaper by Oracle AND Efma provides another voice to the chorus advising FI’s to raise their level cognizance and use of customer insights afforded them through analytical tools applied to the oceans of data available now.
“Information is the lifeblood of financial institutions,” said the whitepaper. “Banks are in the privileged position of having access to a huge volume of data relating to their customers. How this is used can make a big difference to the customer experience – and ultimately to the profitability of the bank. The right information, analyzed in the right way, can ensure that the bank can provide the right offer at the right time – along with a seamless service at a lower cost. And that has to be good for everyone involved.”
Customer Insights Become Critical to Bank Relationships
Increasing portability of finances, and the decreasing importance to consumers to designate a “financial home” from among their relationships with various FI makes the understanding of individual customers and prospects more of an imperative than ever before. Active account management thorough automation tools and human intervention in anticipation of inflection points in a consumer’s financial life will need to be a mainstay in the strategy of successful FIs in the coming years.
The ability to transform customer data into meaningful insights could become an important differentiator for financial institutions. Rather than relying primarily on broad customer segments or reacting after customer needs become apparent, banks can use analytics to anticipate changes and identify opportunities for more relevant engagement.
Banking customer analytics can also help financial institutions combine automated account management with human interaction at critical points in a customer’s financial life. As consumers increasingly maintain relationships with multiple financial providers, understanding individual customers and responding to their changing needs will become essential for strengthening relationships, improving the customer experience, and supporting long-term profitability.
Overview by Joseph Walent, Associate Director, Customer Interactions Advisory Service at Mercator Advisory Group
Read the full story here
