Discover how by applying Artificial Intelligence (AI) you can approach a strategy of hyper-personalisation of financial products and services, and improve customer engagement.
Banking institutions have always had a large amount of data on their customers, information that has served the sector for years to generate new financial products, calculate risks, detect fraud or guide their commercial and business strategies.
Today, in a hyper-connected era in which digital customers generate more and more data and are more demanding, it seems obvious that institutions should use this information to improve their product and service offerings. Institutions seek to offer products that are tailored to the specific needs of customers at specific times to enhance their experience in a personalised way.
These flexible experiences and solutions for customers’ needs at each moment of their lives are what we call hyper-personalisation, and they are the immediate future of digital banking.
What is hyper-personalisation of financial products and services?
Hyper personalisation refers to a customer strategy based on the fact that each customer is unique. In other words, unlike traditional personalisation where customers are grouped by profile, in hyper-personalisation, there are as many segments as there are customers in the portfolio.
Thanks to technological advances such as Artificial Intelligence (AI), banks can use real-time data from multiple channels and touchpoints to identify customer preferences and offer tailored content, products and services.
Looking around us, we can find examples of personalisation in every business sector. For example, Netflix recommends content according to the tastes of its customers or Spotify creates personalised playlists based on their musical tastes. In the banking sector, banks are recently allowing their customers to add accounts from different banks to their online banking so that they can know their actual and concrete financial status (which gives banks even more information about their customers). They also make it easier for customers to forecast upcoming bills, or they can send them savings and investment recommendations or financial situation alerts.
The reality of hyper-automation in the banking sector
Although a third of companies in the sector believe that AI-driven hyper-personalisation of financial products and services is an effective strategy that brings great value to the business, only around 10% have implemented it.
This figure is not so strange knowing that to move towards a hyper-personalisation strategy it is necessary to have end-to-end digitised processes, a real omnichannel approach in which data and contacts with customers regardless of the channel used (digital or non-digital) are correctly recorded in the same place, tools that allow handling large amounts of data (Big Data ecosystems), and AI-based analytical models that extract value from this data (purchasing behaviour, customer interests, level of engagement, etc.).
Customer Identity & Access Management platforms and Social Logins are also useful at this point, allowing entities to obtain more information and knowledge of customers through their social networks.
Implementing an AI-based hyper-personalisation strategy for financial products and services is a complex process, which is why 80% of institutions prefer to outsource the initiative in whole or in part.
Conclusion
AI-based hyper-personalisation of financial products and services is the client-centric strategy that will drive the industry towards smart banking. Offering hyper-personalised products and service demonstrates to customers that the brand knows them, invests time in them and does not treat them as just another customer.
Currently, few companies in banking and finance are implementing a full and effective hyper-personalisation strategy due to the technological capabilities required to do so. That is why many entities choose to hire the services of companies specialising in Artificial Intelligence and advanced data analytics.
At decide4AI we can help you analyse your level of personalisation of products and services, advise you on the next steps to take, develop and implement the necessary technology to achieve a complete hyper-personalisation strategy, and accompany you throughout the process to ensure its proper functioning and the benefits it brings.
Do you want to implement a hyper-personalisation strategy in your company and don’t know where to start?
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