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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.

 

 

 

Consumers and Businesses shift to enhanced digital functionality

Even before the COVID crisis, consumers and businesses were rapidly shifting to solutions provided in a digital transaction environment. For traditional financial institutions, adapting to these fast-moving changes is paramount to consumer and business banking customer retention and deepening relationships.

How is competition evolving as the shift to digital financial services has been accelerated during the COVID crisis?

Intuit’s QuickBooks Cash:

Earlier this Summer, Intuit’s QuickBooks™ rolled out QuickBooks Cash™, a component of their service to small businesses. Intuit partnered with Green Dot Bank to integrate access to a bank account directly within the QuickBooks platform.   Within QuickBooks and QuickBooks Cash, businesses now have access to a debit card, instant deposits, and bill payment. Many small businesses leverage QuickBooks to help manage their accounting, payments, and payroll within the digital platform. The addition of QuickBooks Cash may entice businesses to move more of their business banking relationship to Intuit’s ecosystem.

SoFi Money:

SoFi is a fast-growing fintech firm that began by offering student loans on a digital platform. Since its founding, it has rapidly moved to become more bank-like by expanding its digital payment services. This includes its new offering of SoFi Money™ a high-interest cash management account that also includes a debit card, integrates P2P transfers, and a mobile app.

What strategy can your Financial Institution deploy to compete more effectively:

As your financial institution shifts to offer more digital functionality, your FI has a wealth of information about your customers that is unique to your firm. By leveraging this information, your FI can identify shifts in digital behavior and target communications and messaging to specific segments of your customers. As an example, many of your customers have an existing relationship with QuickBooks and SoFi, and the growth of engagement with these companies continues at a rapid pace. By using a data intelligence service like the one offered by IFM, you can identify which of your customers have a relationship with these firms and track any changes in activity to enable targeted communications to be delivered in near real-time to limit relationship depletion as new services and capabilities are added by competing non-traditional financial institutions.

For more information on how your FI can leverage IFM’s services, we’ve added additional information on our website at infimark.com. IFM offers a free evaluation and analysis giving FIs a detailed view of competitive customer relationships and identifying opportunities for the retention and deepening of consumer and business banking relationships.

Check out the latest vlog from Rob Reale where he discusses how consumers and businesses are finding digital solutions to their financial services needs.