No One Wants to be ‘Just a Number’: The Importance of Digital Banking Personalization and Building a Sense of Community for your Bank or Credit Union
Companies and brands across all industries use personalization to create memorable experiences that increase sales and loyalty. From customized ads on social media to targeted email campaigns based on a consumer’s interests and interactions, personalization is everywhere. In fact, a recent McKinsey study found that personalization can reduce acquisition costs by as much as 50%, boost revenue by 5 to 15%, and increase the efficiency of marketing-spend by 10 to 30%.
Banks and credit unions are no strangers to this approach, leveraging data-backed insights and user behavior data to reach their customers and members with solutions, services, and education that address their personal financial stories. In addition to benefits associated with costs and revenue, those that leverage personalization capabilities within their institution also see increased engagement, as well as stronger account holder loyalty.
There are countless ways to implement personalization techniques both in-branch and through self-service channels. Whether your institution starts with just one, or implements an enterprise-wide approach, you’ll establish a sense of community and connection to your account holders, showing your understanding of their demand for a truly customized experience. Regardless of how a customer or member transacts, they desire solutions that guide them through their financial journeys and simplify their decision-making processes. Personalized advice and recommendations also help offer targeted resources that enhance a bank or credit union’s role as a trusted advisor. For example, instead of simply informing an account holder that they are approved for a mortgage, financial institutions can become an advocate by providing educational resources, such as checklists, videos, and how-to guides to prepare for homeownership – owning the account holder lifecycle from start to finish.
Although relatively new, the concept of 'empathic banking' is quickly becoming an important concept that bridges the digital-human element by providing real-time advice and products that help account holders make smart financial decisions. By utilizing technology to identify important moments in a customer's or member's life and making proactive suggestions to support them, banks and credit unions present themselves as relatable and an ally. For example - introducing new products, services, and advice that correspond to the customer or member – whether it be an important moment like saving for retirement, or the birth of a child. In today's competitive environment, the adoption of digital and self-service banking continues to advance, and financial institutions must balance technology with empathy, adding a more human touch to their remote channels.
Leveraging data and analytics enables an institution to unlock a wealth of valuable insights into user behavior, providing a comprehensive and nuanced understanding of the user journey and their financial story. Through data-driven personalization, often powered by AI, machine learning and predictive analytics, institutions target and deliver messages at crucial moments that keep customers and members engaged and loyal, enabling real-time decision-making that drives action. Data insights also allow a bank or credit union to establish themselves as a reliable resource who delivers targeted suggestions and resources – ensuring no one is “just a number” in the competitive banking environment.
The trend towards personalization is no longer just a 'nice to have,’ but quickly becoming a necessity for institutions of all sizes. To deliver personalized digital banking, its crucial to leverage cross-channel and organizational data, deliver targeted advocacy, and take an empathetic approach to bridge the human-digital element - enabling the bank or credit union to drive sales, cultivate account holder loyalty, foster a stronger sense of community, and stand out among others.
Alogent’s unified digital banking platform, NXT, is a flexible solution that enables banks and credit unions to easily incorporate personalization and marketing campaigns by leveraging data driven insights and user-behavior data. Combined with its scalability and extensive partner network to build a complete and complementary digital ecosystem, NXT keeps banks and credit unions competitive and top-of-mind with account holders.
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