Personalization is the new technique for growth. It has now become a very pivotal adoption in the financial service industry. A study done by Capco, an international consulting firm, in 2021, reports that 89% of customers point out personalization as a significant component of their relationship with their banks.
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Studies have shown that 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.
Accordingly, personalization is the action of designing or producing something to meet someone’s requirements. Customers are attracted to personalized financial service because it is customized to meet their unique needs.
What Is Personalized Banking?
To enjoy personalized banking service in those days, customers usually have a personal assistant that helps them navigate through the complex financial system. These personal assistants (or bankers) are known for helping customers open saving accounts, maintain accounts, and arrange loans and other financial issues.
These days, these kinds of services can be accessed by users through a software app. Moreover, customers, through digital banking can bank unaided and enjoy personalized banking.
In this article, I highlight five strategic ways FinTechs can design and develop a more personalized banking experience to increase its users and boost tractions.
Creating a personalized banking experience for users relies on the same customers’ data. Through customers’ data, FinTech can create a banking experience that connects with users on a personal level. Nowadays, collecting customer data is easier. Through the use of mobile customized software applications, FinTechs can assemble users’ data such as spending history, income level, hobbies, marital status, and so on.
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With these available data, FinTechs can provide personalized services. For instance, if a customer has a saving goal, presenting a presenting plan or gamification saving plan, can make the customer enjoy the banking experience.
Modified content is also known as customized content designed specifically for a particular customer through the use of Machine Learning (ML) and Artificial Intelligence (AI) tools. With these tools, FinTechs can analyze users’ behavior on a web page or in a mobile app and send a specific message to users. For example, a consumer may halt a payment online, through the use of ML and AI FinTech can send reminders to the user. If there is a continued delay, this software can send a loan plan to the user.
FinTechs can become more personalized when doing targeted marketing. Humans have different needs, desires, and living conditions. The ability of FinTechs to reach and solve them will help them expand their growth while retaining their customers. The idea behind the personalization service is to segment your audience by interests, problems and wants and solve them. For example, everyone may wish to save, say, 1,000,000 nairas to ensure a comfortable retirement age.
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However, for a twenty-year-old client, the priority is to pay off his debts and get employment. The subject of savings is more appropriate and important for a client in his forties with regular income and who wishes to prepare well for his future retirement. It is worth making different offers for these groups.
In the age of digital and robotics, personalized communication has become easy. However, the location of the contact points cannot be overlooked. As businesses embrace chatbots as a communication channel, which is a good thing, the place of person-to-person connection is critical. Therefore, FinTechs must adopt multi-channel strategies to reach the target audience. This can help FinTechs use convenient means such as email, instant messaging, or SMS. This will enable quick connection and efficient response between FinTechs and customers. Lately, banking apps are using Instagram-style stories where they post personalized recommendations. For example, a travel enthusiast might find last-minute travel information or overseas travel insurance plans.
When an individual approaches a bank with a situation that requires the assistance of multiple operators, they do not want to repeat the pain of reaching out to different people. Previously, each manager who joined the discussion had to have the essential information about the customer’s request. These split communication channels can be frustrating for customers. Therefore, FinTechs need to set up channels so that data from multiple sources are compiled into a single archive.
Featured Image Source: Investopedia
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This article was first published on 4th July 2022