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5 Personalized Banking Strategies FinTechs Can Use To Retain Customers And Expand Growth

Emmanuel Nnaemeka
  Personalization is a new business operation, especially in the financial services industry. According to a 2021 study done by Capco, an international consulting company, 89% of customers see personalization as a critical factor in their relationship with banks. Personalization, according to the survey, is a key factor in measuring quality service within the framework of financial service delivery. What is personalized banking? How can it be implemented in financial software?
Read more about Fintechs
Defining Personalised Banking In the past, to enjoy personalised services, bank customers had to employ personal assistants. Personal bankers helped them to open savings accounts, arrange loans, maintain accounts, and solve other financial issues.  Presently, this premium service is accessible for every user of banking software. Customers of banks unaided solve financial issues, thanks to digital banking and a personalized method. 79% of Millennials, 75% of Gen Zers, 74% of Gen Xers, and 58% of Boomers prefer personalization and consider it when choosing a new bank.  In this article, I highlight five strategic ways digital banks and FinTechs can design and develop a more personalised banking experience.
  1. Customized Products
The possibility of creating a personalised experience is anchored on customer data. Therefore, if FinTechs must give their customers the best-personalised experience, they must work with their data. These days, collecting data can be made possible through the use of mobile applications made for the purpose. Applications such as these can get customers’ data, such as spending history, income level, hobbies, marital status, and so on. With these available data, banks and FinTechs can provide personalised services. For instance, with provided data, you can know that your customer’s car is old and might suggest a soft loan for a new car. Also, with data you know which client is a parent and suggest student loans for their children. 
  1. Adapted Content
With the current availability of Machine Learning (ML) and Artificial Intelligence (AI) devices, FinTechs can analyse user behaviour on a web page or in a mobile app and send relevant messages. For instance, a customer might pause a financial transaction or an online purchase, with ML and AI, FinTech apps can send a reminder. Another instance is when a customer has viewed an online store to buy a book, the platform can suggest a consultation with an insurance agent. 
  1. Multichannel Strategy
In the age of digital technology and robotics, personalised communication has been made easy. However, the place of touchpoints cannot be overlooked. While companies are adopting chatbots as a channel of communication, which is good, the place of human-to-human connection is pivotal. Therefore, FinTechs must adopt multichannel strategies to reach the target audience. This will require them to use convenient mediums such as email, instant messengers, or SMS. This will boost the opportunity for quick connection and effective response between FinTechs and customers. Lately, banking apps have been using Instagram-style stories where they post personalized recommendations. For instance, a trip enthusiast may come across information about last-minute tours or insurance plans for trips abroad. 
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  1. Connecting Communication Channels
When an individual approaches a bank with a situation that requires the assistance of several operators, s/he doesn’t want to repeat the essence of the appeal to different people. Each manager who joins the discussion should have the essential information about the client’s request. Thus, FinTechs need to set up channels in such a way that data from several sources are compiled in one archive. 
  1. Targeted Advertising
FinTechs can become more personalised when they carry out targeted marketing. Humans have different needs, desires and life circumstances. The ability of FinTechs to reach out and solve them will help them expand their growth while retaining their customers. The idea behind personalization service is to segment your audience by interests, problems, and wishes and fix them. For instance, everyone can have a desire to save, say, N500,000 to secure a comfortable retirement age. However, for a twenty-year-old client, the priority is to pay off debts and find a normal job. The subject of savings is more suitable and important for a forty-year-old customer with a regular income and a desire to appropriately prepare for future retirement. It is worth making different offers for these groups.  Featured image source: Pinterest
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