February 13, 2024

Transforming Banking experience: The Power of Personalisation

In today’s banking world, a new trend is emerging—the era of personalised experiences. In the face of stiff competition from tech giants, banks are redefining their strategies to engage customers in more meaningful ways.

Why personalisation matters in banking?
Banks have long tailored offers to specific customer groups, but now, personalisation means going beyond sales pitches. It involves using data to understand individual needs, offering daily services, information, advice, and products that align with each customer’s unique requirements.

However, achieving this level of personalisation is no easy feat. Banks face challenges such as outdated systems, fragmented databases, and regulatory changes. Yet, the pain is real: 33% of customers, according to Accenture’s study, abandoned the company due to a lack of personalisation, while 91% of consumers are more likely to shop with brands that recognise, remember, and provide relevant offers and recommendations. The reasons for the preference for this type of customer service experience are mostly psychological. Consumers want choice and the ability to determine what is most appropriate for their needs.

Worth reading! Explore how personalised financial products improve customer engagement

Now, let’s briefly discuss what personalisation is not in the banking world. There are numerous misconceptions surrounding personalisation. It goes beyond simply segmenting product offers or digitising customer journeys. True personalisation involves a profound understanding of each customer and the customisation of experiences across both digital and human channels.

Why do banks not offer personalised products

Now, you may be wondering about the impact of investing effort in enhancing personalisation for your bank. Let’s break it down:

  • Enhanced engagement and deeper relationships: connect more effectively by recognising the uniqueness of each customer. Personalisation allows for the customisation of banking experiences, creating seamless interactions that build stronger connections and increase overall satisfaction.
  • Increased profits and sustainable growth: attract new customers and tap into existing ones by offering tailor-made investment opportunities. Effortlessly enhance revenue through upselling and cross-selling, ultimately securing a larger share of the customer’s wallet and establishing a robust competitive advantage.

The urgency is clear – personalised banking is not a future vision; it’s becoming a reality. Banks that act swiftly stand to gain a significant advantage over competitors. It’s time for banks to embark on this transformative journey, building trust, and creating lasting relationships with their customers.

Curious about how a bank can kickstart its journey into personalisation? Stay tuned for our next article, where we unveil the key starting points!