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What Does Personalization In Financial Services Mean?

Recent studies showed that 52% of consumers expect their offers to be personalized, and 62% want firms to anticipate their needs. This is excellent news for financial institutions who are looking to leverage innovative approaches to understanding their clients better while deepening their engagement.

Now is the time for your FI to gain a competitive advantage by capitalizing on the power of personalization by offering a more user-centric and solutions-based experience for your customers.

To do that, though, you have to understand the power of personalization. Let’s discuss the concept in more detail.

Personalization in Financial Services

Personalization in financial services focuses on transforming a firm’s customer interactions using data and analytics to anticipate individual needs and build deeper relationships.

It is not all about selling, but providing information about the FI’s products and services on a regularly occurring basis.  By doing so a financial institution can transform itself into the go to source for a consumer or business’s financial needs.  This strategy demands recursive learning, a 360-degree view of customers, and a personalized curriculum intended to change customers’ behavior and attitude.

Numerous firms have shown how personalization is vital. Netflix, for instance, uses personalization techniques to provide movies and TV show recommendations. Starbucks uses digital partnerships and technologies to build relationships with millions of consumers across its 7,000 stores.

That said, while most FI’s are significantly investing in their data and analytics capabilities, the “Netflix of banking” has not yet emerged. The primary reason is that real end-to-end personalization means deploying data science capabilities that utilize clean and accurately categorized transaction data delivered daily.

Eventually, if done perfectly, personalization can offer a direct route to reduced customer churn rates and higher sales. It can lead to yearly revenue uplifts of up to 10% for financial service firms. It will enable firms to truly understand their clients, anticipate their needs, and engage in rich dialogues about their financial capabilities, fostering loyalty that lasts a lifetime.

 

A Quick Guide To Bank Deposit Growth

 

What Are the Perks of Personalization?

Here are some of the benefits of personalization:

  • Studies estimate that for every $100 billion in assets a financial institution offers, it can achieve over $300 million in revenue growth by personalizing customer interactions.
  • Personalization also helps drive sales communication, even though these might not be the most frequent interactions. Some financial service firms have used personalization to boost branch sales productivity by over 30%, while others have seen an increase in revenues by 20% in three years.

Examples of How Financial Service Firms Can Deliver Personalization

Three core elements form the foundation of banking personalization at scale:

  • Analytic Engine & Recursive Learning – by using systematic experimentation, financial institutions allow flexibility and create tailored offers that evolve with time. The recursive learning ability needed for personalization constitutes a built-in advantage for individuals who leverage it first
  • Consumer DNA – bank systems need to feed a single, enterprise-wide view of every consumer—a view that systematically reflects every customer at any given time
  • Personalized Curriculum – consumer offerings are customized to one segment. They define desired consumer behaviors and strategize on how best to incentivize those behaviors

Final Thoughts

Financial institutions today are not just competing against each other but against technological powerhouses that harness data to their advantage. To keep up with the changing environment, FI’s have to revamp their approach to serve their customers at a personal level.

With proper personalization, FI’s can decrease friction in their customer journey and attain higher engagement.

For the past 20 years, Insight Financial Marketing, L.L.C., has provided financial institutions with customer insights from the analysis of customer financial transactions such as ACH, debit card, credit card, and wire data.  These insights are typically leveraged to help deepen relationships with consumer and business customers.

With IFM’s data analysis sophistication, financial institutions can better understand the unique changes in their customers’ financial lives as they happen to enable the financial institution to enhance marketing messaging resulting in outreach that is well received by their customers.

 

Contact IFM

 

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Insight Financial Marketing Celebrates 20th Year Anniversary

20 years of innovation, development, and trustworthy business practices mark the milestone.

IFM’s services provide financial institutions with large-scale transactional analysis and consulting identifying opportunities to help strengthen and grow their client relationships. Founded on July 16, 2002, IFM began analyzing Automated Clearing House transactions for marketing purposes and fraud detection, considered a unique capability by the financial services industry. Over the years, IFM developed an extensive and sophisticated processing methodology for translating and categorizing transactions that enhanced their ability to produce customer insights for financial institutions.  As IFM’s capabilities matured, their analysis expanded to include all bank data types.  

Most recently, IFM’s services have been leveraged to enhance A.I. and machine learning initiatives,  advanced analytical capabilities to smaller regional and community-based institutions, and product expansion providing alternative data insights that, according to the Consumer Financial Protection Bureau (CFPB), can provide numerous advantages to financial institutions including enhancements to their credit lead qualification and underwriting.

The foundation of IFM’s success has been the firm’s unwavering commitment to innovation and excellent service, and the founding partners’ focus on enhancing the personal and professional well-being of all of IFM’s employees. 

 

IFM Senior Partner, Michael Uline reflected on the company’s 20th anniversary by saying,

“For several years IFM had to educate banks on how to use transactional information to provide a better product and service to their clients.  Today, banks expect to use transactional information to improve their client relationships. IFM is a pioneer in transaction analysis and over the 20 years I am most proud of our team.  We have built a core set of employees that are experts in providing a responsive and accurate result to our clients.  It is because of our team, that we have had loyal clients for more than fifteen years.”

 

John Donohoe, IFM Senior Partner, added, 

“I am ever grateful for our successful twenty years and am thankful to our customers and our employees who have not only made our twenty years successful but have provided a great environment to grow our opportunities and build on our historical success. I look forward to many additional years of achievements with our new product offerings, new distribution channels, and our adept colleagues.”

 

IFM wishes to thank all its valued customers, strategic partners, and especially those who have been loyal to IFM since its inception.

About IFM

Over the last twenty years, IFM has developed an industry-leading customer intelligence platform for the financial services industry.  From our company’s founding in 2002 IFM has grown to serve many of the largest financial services firms based in the U.S., large international institutions with U.S. operations, and regional and community-focused institutions.  Our analytical sophistication has expanded across all bank data types delivering a wide range of profitable solutions from customer knowledge and cross-marketing leads to campaign management and professional services.  Learn more about at www.infimark.com.

Contact

Rob Reale
Associate Partner and National Sales Manager
Insight Financial Marketing
rreale@infimark.com
567 Harbor Side Street • Woodbridge, VA  22191 • (703) 490-3226
2626 E 82nd St, Ste 230 • Minneapolis, MN  55425 • (952) 432-1482

 

Contact IFM
EBook: A Quick Guide To Bank Deposit Growth

 

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Using Customer Intelligence to Compete More Effectively in the Future of Financial Services

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Like other industries in this new millennium, the financial services industry has been rapidly transformed by new technology.  With the rise of digital money, real-time money movement, and increased competition within the industry, this change is growing at an even faster pace.  But let’s face it, this industry has been one of the slowest to change compared to the Music/Movie Industry, Travel/Transportation, Communications, Engineering/IT/Cyber Security, and Shopping. 

 

How an institution prioritizes the utilization of data and information technology will largely dictate its future success.

 

One reason has been an inability for many traditional FI’s to transform their culture to prioritize data and information technology.  How an institution prioritizes the utilization of data and information technology will largely dictate its future success.  A recent article by Industry advisor Jim Marous, “How to Build a Data Culture that Supports Digital Banking Transformation” (thefinancialbrand.com), mentions the importance of implementing a data-centric strategy across the enterprise.  The article states that “Customer insight platforms and the process of information management can expand to customer service, product development, compliance, privacy governance and other key areas of the organization that need a complete and real-time view of the customer.”  

 

A Quick Guide To Bank Deposit Growth

 

Insight Financial Marketing (IFM) recognizes the importance of customer insights and has supported financial institutions across the country for nearly twenty years.  IFM clients have implemented our customer intelligence service into their enterprise-wide data strategy and have become leaders in the industry.  IFM’s advanced technology provides new capabilities related to detecting changes in customer behavior and the ability to predict customer behavior.  

To learn more about how IFM has helped FI’s transform data to be more easily leveraged throughout an enterprise and to enable your FI to compete more effectively in the future, contact Rob Reale, Associate Partner and National Sales Manager, at rreale@infimark.com or visit our website, www.infimark.com.    

 

Contact IFM
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