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Financial Institutions & Digital Capabilities

Financial Institutions have moved swiftly to enable more digital functionality. This effort has taken on many different paths. For some, the move has been to offer a combination of the following: BaaS, Open Banking, digital loan applications, a stand-alone digital bank, faster payments, access to cryptocurrencies, P2P functionality, electronic signatures, PFM, online and mobile app B2B capabilities. All this has been occurring, while at the same time, Big Tech, FinTech, and DeFi, have been launching new capabilities that target specific needs of consumers and businesses. Many traditional financial institutions have also developed partnerships and strategic alliances with Big Tech and FinTech firms or have invested in them directly.

 

 

COVID is Driving A Shift In Behavior

The COVID crisis further amplified the need for consumers and businesses to conduct more of their financial lives online and through mobile apps. In many ways, the changes in our industry were a direct result of a shift in consumer and business preferences that have been a long time coming; a need to move money faster and with a delightfully easy experience. While consumers’ lives and business operations have not yet returned to “normal,” we have learned how to adapt to life with a deadly virus around us. This includes being more comfortable with conducting more of our financial lives virtually rather than in person.

What comes next?

From IFM’s view, we see changes in consumer and business behavior daily. As a result of more digital functionality, the amount of data has grown exponentially. Some FI’s have seen their digital transaction volumes grow more than 2x-3x faster than previous years. IFM works with many of the largest banks in the U.S. and smaller FI’s that have a critical role in their communities, and all are impacted by changes in consumer and business behavior.

The movement of money has never been faster and will only become faster still. To be competitive, FI’s must be at the top of their game when utilizing data insights and predicting future customer behavior. IFM has an industry-leading customer intelligence solution to help your FI communicate more efficiently, with direct personalized content, and keep you and your enterprise informed of future behavioral changes.

Contact us today to take advantage of our free, no-obligation evaluation offer to get a first-hand view of your consumer and business customers. To learn more, visit us on our website at www.infimark.com.

 

 

 

 

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.”  

 

 

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.    

 

As Digital Banking takes off, Personalized Marketing will become more important for the Banking Industry

A recent Bain & Company article mentions that financial institutions should be concerned that “many consumers look outside their primary bank for high-margin products”.   However, the article also contains recent survey results that note “most customers who received direct offers would be willing to buy more from their primary bank if it made a personalized offer”.

The article discusses how the rise of digital banking, in part caused by the global pandemic, has led to the hidden defection of bank customers.   As more consumers turn to digital banking it will be imperative for banks to personalize their messaging to customers to compete more effectively in today’s challenging environment.

What is Personalized Marketing?

The term personalization means reaching consumers with messages, pricing, and offers tailored specifically for them. This form of one-to-one marketing uses sophisticated analytic tools to analyze customer data to determine customer needs.

Banks are moving rapidly to leverage personalized messaging by using machine learning and data science tools to process a vast amount of customer data. Insight Financial Marketing is a leading innovator in this segment of the industry. IFM’s service enables banks to analyze the patterns in their transaction data to anticipate specific customer needs. A customer is more likely to purchase a bank product or service if the right offer is presented to them at the right time. This creates a win-win situation where the customer gets the service or product they need, and the bank generates revenue.

The Future of Bank Marketing

By leveraging IFM’s technology, financial service firms will be able to utilize customer intelligence to structure their products, services, and pricing based on customer needs.

For instance, combining artificial intelligence and machine learning with customer insights via IFM’s service has the potential to be a real game-changer. By leveraging IFM’s technology, financial institutions have greater precision in assessing risks, predicting life events, and lifestyle changes.

Personalization has made it possible for customers to save money by presenting the right products and services that meet their current and future needs, while also allowing financial institutions to prosper by developing deeper relationships with their customers. The future of marketing in the financial services industry is being shaped by a rapid shift to the personalization of communications brought on by modern data analysis tools provided by IFM.

Conclusion

With IFM’s industry-leading customer intelligence solution, financial institutions will have the technology and experience to leverage personalized marketing that will drive revenue growth and enable your firm to compete more effectively in today’s challenging environment. To discover how your firm can engage IFM’s solution please contact me via our website, Infimark.com, or via my LinkedIn page.

Cutting edge technology has fostered rapid innovation throughout various industries over the past ten years. This rapid change is impacting the financial services industry with full force, especially during this difficult COVID environment. Consumers and businesses are rapidly searching for solutions to meet their needs. Examples of this change include real-time P2P and contactless payments, investment robo-advisors, free stock trading, and app-based financial technology such as Dave™, Chime™, and Square’s CashApp.  

Additionally, historically low-interest rates, coupled with an uncertain economic environment that has stunted the appetite for lending at many institutions, have put pressure on banks to find ways to generate revenue.

Deepening relationships with existing customers is one avenue financial institutions will travel as they revamp their strategy to generate revenue while also helping customers navigate their financial journey. One challenge with this strategy is the fact that every customer has a unique journey. A one-sized approach to helping consumer and business customers in their time of need is no longer effective. Data-driven intelligence is necessary in today’s world to create personalized solutions for customers that meet their immediate and future financial needs. A powerful way to develop insights that will assist FI’s in deepening relationships is through analysis and evaluation of electronic financial transactions. IFM provides an easy to deploy solution that provides near real-time customer insights.  

Using IFM’s service and capabilities, FI’s can –

  • Utilize powerful customer insights to aid in the development of new and innovative products and services
  • Identify changes in customer behavior and predict future needs in near real-time
  • Have a resource that provides clean data to power AI and machine learning initiatives
  • Know whom to communicate with and when to communicate personalized messages

If you’d like additional information on IFM’s service and capabilities, or would like to learn more about IFM’s free, no-obligation evaluation of ACH and Card data, please contact us via our website, or reach out to me directly via my LinkedIn page or my email address at rreale@infimark.com. I’ll look forward to communicating with you and helping you along your journey toward developing an enhanced data-driven customer intelligence capability.  

Check out my latest vlog where I share more about the challenges customers are facing during the global pandemic.