Written by Matthew Johnson, dimartec Managing Director.
Today, I came across an interesting article on The Financial Brand, which delves into personalised banking and what it means for customers.
Here's my take on the key points in the article:
Key point 1 - Customers are in control:
The article makes the point that customers are now in control, with a greater ability to customise their banking experiences than ever before.
Of course, this is true, as we've seen a rise in customer-centric fintech companies that offer customisable solutions to meet the needs of individual customers.
However, I'd argue that customers have always been in control, and it's only now that banks are starting to catch up and provide more personalised services.
Key point 2 - Personalisation isn't just about data:
The article emphasises that personalisation isn't just about using customer data to offer targeted products and services.
While data is important, there are other ways to provide a personalised experience, such as offering proactive communication and support, or providing a human touch through customer service.
I couldn't agree more with this point. Fintechs and banks need to remember that customers are people, and a little bit of human interaction can go a long way.
Key point 3 - Personalisation can improve customer loyalty:
The article suggests that personalisation can lead to increased customer loyalty, as customers feel more connected to their bank and more satisfied with their experience.
This is obvious to all.
Customers are more likely to stick around if they feel like their bank is invested in their financial well-being.
However, I'd add that personalisation isn't the only factor that contributes to customer loyalty.
Banks also need to offer competitive rates, convenient services, and reliable security measures to keep their customers happy.
Key point 4 - Personalisation can help with cross-selling
The article notes that personalisation can be an effective tool for cross-selling, as banks can use customer data to suggest relevant products and services.
While this is true, I would add that banks need to be careful not to come across as pushy or invasive when using customer data for this purpose.
Too much too soon, can damage brand perception quickly and severely.
It's all about balance and timing.
Personalisation should always be done in a way that respects the customer's privacy and autonomy.
Key point 5 - Personalisation requires investment:
The article rightly points out that implementing personalised banking services requires investment in both technology and talent.
Banks need to have the right tools and people in place to collect and analyse customer data, as well as the ability to act on that data in a way that benefits the customer.
This is a crucial point, as personalisation can't be done effectively without the right resources in place.
Closing thoughts.
Personalisation is an critical trend in fintech and banking, but it's important to remember that it's not a silver bullet.
While personalisation can lead to improved customer loyalty and cross-selling opportunities, it's not the only factor that matters.
Banks and fintechs need to offer a range of services that meet the needs of their customers, while also respecting their privacy and autonomy.
With the right investment in technology and talent, personalised banking can be a powerful tool for banks and customers alike.
In my opinion, Plum Fintech get this right better than any fintech on the planet. But I'm biased for a few reasons.
I love Plum, and if you're a fintech marketer, spend some time on their app and follow them online to see what can be achieved when you nail personalisation AND everything else required to be a beloved fintech brand.
