How hyper-personalisation can revolutionise banking

In an era where customer experience reigns supreme, banks are under enormous pressure from FinTechs and neo-banks to keep up with the latest trends and deliver better experiences for their customers. The analyst firm Celent reports, that 70% of corporate and 75% of retail banks are finding it more difficult to win and retain clients in the last 12 months.

Changes in other industries such as retail, transport, and hospitality have shown consumers they don’t need to be a millionaire to have products and experiences tailored specifically for them. Personalised experiences have become the cornerstone of successful marketing strategies – from tailored product recommendations to customised emails, businesses are using hyper-personalisation to engage customers on a deeper level.

With constant innovation in FinTech, gone are the days of one-size-fits-all banking experiences. Today's customers expect personalised interactions that address their unique financial goals, preferences, and lifestyles.

So what is hyper-personalisation?

Deloitte defines the term as using real-time data to generate insights by using behavioural science and data science to deliver services, products and pricing that are context-specific and relevant to customers’ manifest and latent needs (i.e. those needs which, due to a lack of information or availability of a product or service, cannot be satisfied). These insights are garnered using Artificial Intelligence to analyse data.

By harnessing the power of advanced analytics and customer insights, banks can deliver tailored experiences that cater to the individual needs and preferences of each customer.

At the heart of this transformation though is the relationship between hyper-personalisation and having the right data. Hyper-personalisation in banking involves leveraging data-driven insights to deliver customised products, services, and communications tailored to the individual needs of each customer. Whether it's personalised product recommendations, targeted marketing campaigns, or proactive financial advice, hyper-personalisation enables banks to create meaningful connections with their customers and drive loyalty and satisfaction.

The Crucial Role of Data

At the core of hyper-personalisation in banking lies the right data – comprehensive, accurate, and actionable data that provides insights into customer behaviours, preferences, and needs.

360-Degree Customer View: Banks collect vast amounts of data from various touchpoints, including transaction history, online banking activity, customer service interactions, and demographic information. By consolidating and analysing this data, banks can create a 360-degree view of each customer, enabling them to understand their financial behaviours, preferences, and life stages.

Predictive Analytics: Armed with the right data, banks can leverage predictive analytics to anticipate customer needs and preferences. By analysing historical data and identifying patterns and trends, banks can predict future behaviours and preferences, allowing them to proactively offer personalised products and services that meet individual customer needs.

Personalised Recommendations: With access to granular customer insights, banks can deliver personalised product recommendations that resonate with each customer's unique financial goals and preferences. Whether it's recommending a savings account with higher interest rates, a credit card with tailored rewards, or an investment portfolio aligned with their risk tolerance, personalised recommendations empower customers to make informed financial decisions.

Contextual Engagement: In today's digital world, customers expect personalised experiences that are relevant to their current context and needs. By leveraging real-time data streams and contextual information, banks can deliver timely and contextually relevant communications, offers, and advice that address specific customer needs and situations.

Building Trust Through Data Privacy and Security

While the benefits of hyper-personalisation are undeniable, banks must prioritise data privacy and security to maintain customer trust and confidence. By implementing robust data governance policies, complying with regulatory requirements, and leveraging advanced security measures, banks can safeguard customer data and ensure that personalization efforts are conducted ethically and transparently.

The success of hyper-personalisation hinges on the availability of the right data – data that is accurate, comprehensive, and ethically sourced. By harnessing the power of data-driven insights, banks can unlock the full potential of hyper-personalisation and create meaningful connections with their customers, driving loyalty, satisfaction, and long-term success in an increasingly competitive market.