This is the second in a series of posts how building and using more effective Customer Insights can yield improved performance and competitive advantage for banks and financial institutions.
In our previous article regarding customer insights, we discussed how more information, particularly within the acquisition process, can help our clients better understand their customer needs and improve servicing, particularly with small business opportunities. It is just one example how customer insights can transform a business. We are seeing more and more banks investing in customer insights to change the way they treat and interact with existing customers.
One such opportunity involves the creation of a consolidated view of a customer’s multiple accounts. For a multitude of reasons, detailed information for various accounts for any given customer resides in disparate, non-integrated systems. When we discussed this challenge with a group of clients, the common refrain is that projects to consolidate customer information across the enterprise either are already underway, are in the planning stage, or are actively being considered. Multiple levels of complexity exist for any company looking to create such an initiative, including linking all consumer records across systems, key maintenance, creating household-level relationships, cross-account linkage between small business and consumer accounts, and general data quality issues.
The benefits of such an initiative are significant, and can lead to improvements in the area of risk, marketing, and compliance. Leveraging a more complete view of a customer, businesses can better assess total account risk and opportunity. Businesses can better optimize the customer-engagement processes to make better, more informed decisions. Many of our clients note a significant benefit for this consolidated view of information is to make more informed decisions at the customer level, not just the particular account being opened or serviced.
Here is a very simple example how more customer insights can facilitate making better decisions.
How do you make more informed customer decisions with different data sources at your disposal?