The New View of the Bank Customer
The way customers view banks is changing, and successful financial institutions will be changing the way they view bank customers as well. No longer are banks just a place to park money; business customers now see banks as partners. By promoting themselves as such, banks will be able to provide the services each bank customer wants — while there is a place for traditional banking products such as savings accounts, the future will belong to banks that can innovate.
In this competitive banking environment, more customers will flock to banks that can present clients with the tools to better manage their finances and increase their wealth. In addition, banks can more clearly define credit risks and keep their lending portfolios strong. In order to do this, banks must collect, analyze and utilize customer data.
Data is the key
By understanding customers’ wants and needs, banks will be able to introduce innovative and differentiated products and customize pricing models. By looking at aggregated data, banks will be able to meet individual needs. Banks will be better able to identify and retain profitable customers, and they will be able to target marketing and promotional efforts to specific demographics. In this way, banks will broaden existing relationships, and will generate new sources of revenue.
Banks will need to see their customers through different channels and different lines of business. By observing and documenting customer behavior both horizontally and vertically, banks will gain a better understanding of their customers and they will have the ability to develop products that match their specific needs.
The 360-degree view
The ability to view the bank customer in a holistic way will not come cheaply or easily. It will require an investment in operations, particularly in information technology. And the resulting data will be valuable only if it is actionable. Banks need to have a concrete plan for their data collection: what type of data will be collected; how will the data be used; and who in the organization will use the data?
The ability for banks to collect, analyze and use customer data represents a golden opportunity to increase revenues and reduce risks. Those banks that are able to devote the necessary resources to this effort, despite increasing regulatory costs, will have a competitive advantage going forward.
Recommended For You
Customer behaviors have become more complex as the number of devices and touchpoints they use expands. Consequently, marketers must be […]
Chalcy Raja leads the Big Data Platform team at Equifax. She has been a trailblazer in the area of big […]
What’s the best way to get someone to pay attention to marketing and advertising? Make it meaningful to them on […]
You have a lot of customer data — housed in a lot of different locations. You’re working hard to make […]