It’s no secret that consumers increasingly want and expect personalized service from places they patronize—and financial institutions (FIs) are no exception. According to J.D. Power’s 2022 U.S. Retail Banking Satisfaction Study, 78% of respondents would continue using their bank if they received personalized support, but just 44% of banks are actually delivering it.
A clear opportunity exists for financial institutions to increase account holder engagement and open up new revenue possibilities. How can FIs reach account holders with the right personalized offers? The key lies in data.
Start with Credit Scores
Nearly two-thirds of U.S. consumers check their credit scores every month, according to LendingClub research, providing a quick and easy way to gauge their general financial health. FIs with credit score products embedded in digital banking can help account holders integrate that intel into their overall financial dashboard. The more financial wellness insights and tools FIs can provide, the easier it is for consumers to understand what steps they need to take to achieve financial goals. Wellness insights instill greater confidence when making significant financial decisions, such as initiating home and auto loans.
Providing such financial planning and wellness tools can deepen the connection and level of engagement account holders have with their FI and ensure that the FIs digital presence is the place where account holders regularly return to check on their financial status.
Follow the Trail of Transactions
Credit scores and financial wellness info are a great way to establish your FI as the place that account holders go for a financial check in. The next step is to build on it and provide personalized financial recommendations and educate about how your products and services can help them take the next step. Utilizing transaction data allows your FI to understand the financial needs of account holders and match them with offers that best fit their needs. This is an effective marketing tactic to build greater bonds with consumers and drive stickiness to the financial relationship.
Data can be the foundation to deliver relevant communications with account holders. Here are a few examples.
- Account holders who are making a large number of payments to buy now, pay later (BNPL) providers might be interested in a credit card or a debt consolidation loan.
- The presence of trial deposits from competitive investment firms would be a signal to communicate information about your wealth management services to prevent deposits from leaving your FI.
- Account holders with transfers to high interest savings accounts would be great candidates for money market or certificate of deposit (CD) campaigns.
- Consumer accounts with incoming deposits from merchant processors are likely businesses who should open a business account.
Transaction data cross-referenced with other intelligence such as products held with your FI, services and channels utilized, balance data, digital banking log-in and usage data, and other key banking core data fields enables hyper relevance and targeted messages that tells account holders that your FI knows them. Similar to a concierge at a five-star hotel, data can help your FI anticipate financial needs before account holders may even know they have them.
Greater Engagement, Greater Trust
Leveraging deep transaction data analytics helps FIs strengthen their relationship with account holders. Understanding which account holders need financial products, and proactively reaching out to them with education, innovative digital tools, personalized messaging, will make the FI the go-to source for account holders.
