The #1 Must-Have in Next-Gen Digital Banking


March 16, 2022

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Today, consumer expectations are more demanding than ever, digital adoption – for both individuals and businesses — has accelerated exponentially, and the traditional 9 to 5 day at the office/home office continues to morph and evolve.

As we navigate through 2022, notable trends in digital banking emerge. One, in particular, tops the list. Hyper-personalization. 

Hyper-personalization that involves understanding each customers’ unique needs and then orchestrating a set of tailored experiences in real time across digital banking channels and human interactions.

How can you deliver meaning and connection?

The power of delivering tailored customer experiences is a no-brainer. This has been a topic that has been discussed for years, across multiple industries – banking is no exception.

In a recent study conducted by American Banker and Monigle, Humanizing the Bank Customer Experience, consumers across all age groups indicated their desire for tailored financial products and services in the following categories:

  • 47%+ want savings and investing strategy recommendations to achieve their financial goals

  • 41%+ want digital dashboards, alerts, and monitoring for their financial accounts

  • 59+ want loyalty programs and cashback rewards

  • 52%+ want interest rates to help them save

Another study conducted by Epsilon showed that consumers are most comfortable with providing personal data when they are able to manage and control the resulting experiences.

Key findings from the Epsilon report found that:

  • 90% of consumers feel that personalization is “very/somewhat” appealing.

  • 80% of consumers are more likely to do business with a company that offers personalized experiences.

Yet, 94% of banks cannot deliver on this hyper-personalization potential.

What can financial firms do in the “made for me” age?

The good news for financial firms is that they are uniquely positioned to deliver meaningful and powerful personalized experiences by using their existing data to support everyday customer touchpoints. In doing so, banks can create more relevant end-to-end customer experiences – while increasing engagement and brand loyalty. Win-win.

But, first, it makes sense for financial firms to develop a fresh way to deliver tailored experiences and move forward with a strategic and next-gen digital banking platform designed to elevate the customer experience across all channels – both digital and human – at scale.

How to boost your financial firm’s revenue growth.

BCG estimates “that for every $100 billion in assets that a bank has, it can achieve as much as $300 million in revenue growth by personalizing its customer interactions…” “…and it is expected that personalized banking will “drive material competitive advantage for first movers that embrace it over the next five years.”

This not only means delivering the right individual experience in the right channel at the right time, but also offering novel services for added value.

 As BCG highlights, “banks use such personalization approaches to retain customers and win their loyalty, and the result is customers’ willingness to recommend their banks or consolidate their financial assets with these institutions, both of which have a significant impact on banks’ profits.”

What is THE differentiator in next-gen digital banking? Hyper-personalization through tailored digital experiences.

Across all industries, consumers expect their financial institution to understand their needs and deliver the Amazon effect – i.e., offer exceptionally relevant product suggestions in real time. Yet, despite technology advancements, many financial institutions continue to struggle in delivering value-driven experiences.

Can your financial institution help customers to: securely manage finances, meet financial goals and preferences, and proactively deliver the right offers and services to help customers achieve financial wellness? Financial firms that can do this well are best positioned for market success and longevity.

To learn more about how next-gen digital banking is evolving customer engagement, read our popular white paper: Does It Fit Me? Tailored Banking is the Next Step in Digital Banking Transformation.

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