Analytics has been at the core of retail bank marketing for decades. But despite the proliferation of data, the ability to effectively leverage insights for a personalized customer experience and enhanced profitability has remained elusive.
Given the tremendous advance in analytic tools available and the processing power generated by cloud-based architectures, the banking industry needs to take a major step forward to meet the expectations of an increasingly discerning customer base. In short, the industry needs to move from using data to build great internal report of past events to using data to build great customer relationships and experiences based on future needs.
It is clear that the industry must move away from the siloed approach that has always defined banking, toward a model where the focus is on customer needs. This advanced analytic approach has the power to reinvigorate the relationship with customers while increasing satisfaction, improving profitability and building trust at a time when large and small competitors are providing new customer-centric digital solutions.
Most financial organizations realize they have a massive storehouse of data, but few know what data is important, or how to leverage this data for increased revenues and lower costs. And as channel proliferation increases, the ability to know what channels are the most effective and efficient to reach any individual consumer is getting more difficult. According to Aite Group, “FIs will have to figure out how to better insert themselves into a digital world and find unique ways to engage consumers in interactions based on their needs, life stages, aspirations, and account spending.”