3 ways data transforming customer experiences in banking

In today’s digital landscape, companies in the financial vertical are navigating ahead through a data-driven approach. That means data lies at the core of decision-making. On the other hand, as digital banking has taken off in recent years, customers expect banks to deliver omnichannel experiences that are more personalized and meaningful. Forbes article.

Understanding and analyzing the available data is key to delivering a seamless customer experience at every touchpoint. So how innovatively are banks seizing the potential of data? What is your organizational approach? Here are the top 3 ways data is transforming the customer’s banking experience.

Data for accelerated decision-making

The spread of digital banking and other FinTech operations in recent years has also changed consumers’ expectations. To meet that goal, many banks must completely redesign, leverage, or transform their customer experience approach. With a data-first approach, BFSI (Banking, Financial Services, and Insurance) organizations understand that collecting customer information from every touch point (mobile apps, branches, websites, social media, and others) helps them improve customer experience and get the ultimate competitive advantage.

With each of these touchpoints, rich data is generated on every click and transaction. Analysis of this data points towards innovation and growth. However, with advanced data management approaches, more data can be liberated from legacy systems and can provide answers to these thought-provoking questions.

· What is the customer segmentation of their product preferences?

· How do the customer journey and cross-selling activities look like?

· Which proactive steps need to be taken to avoid customer churn?

Understanding your customers for competitive advantage

How well do you understand consumer behaviour and how well do you know your customers? These are questions that every data-driven bank is looking to answer because customer preferences help them provide contextual products and offers.

72% of businesses say that customer experience management is their top priority, according to Forrester.

For this, banks need to use both financial and non-financial data to build and deliver relevant experiences for customers. To deliver those seamless customer experiences, data-driven banks have to manage the entire customer journey, from initial touchpoints to the most recent transactions.

Also Read: eCommerce Analytics - A Guide to Driving More Sales with data

To answer this, the integration of modern tools into core banking systems is necessary. A modern data platform is a single, unified data platform that banks globally are adopting. This serves as a single source of truth to meet the most common requirements.

More opportunities with dynamic data integration

The days of traditional data analysis are already over. Modern data architectures are integrated with advanced analytics and self-service business intelligence. Using advanced tools and technologies, banks now have the capacity to answer customers’ concerns in near real-time. These insights have significant business value.

· Customer acquisition using multiple touchpoints means better-performing websites, improved digital marketing, improved SEO, and higher conversion. This leads to the compilation of new customer experiences.

· A holistic view of bank activity and performance can be seen in real-time, which leads to cross-selling opportunities. Customer demands can be met by offering the right products.

· Underwriters can make faster credit decisions using data points like income, social media, and financial brackets.

What’s next for in the banking sector?

In conclusion, the use of data has become an essential tool for banks to improve the customer experience. By analyzing data related to customer behaviour, preferences, and needs, banks can tailor their products and services to meet the individual needs of each customer.

Additionally, data can be used to identify and resolve issues quickly, reducing the likelihood of customer dissatisfaction. Banks that effectively utilize data can create a more personalized, efficient, and streamlined customer experience that can lead to increased loyalty and retention. With the continued growth and importance of data analytics in the financial industry, banks that fail to adopt data-driven strategies risk falling behind their competitors and losing valuable customers. Want to learn more about how we put data transformation into action? Get in touch with us or visit our data management and analytics services page to find out more.