Mar 2017 | Credit Decisions

Loyalty to your bank

A young saver would traditionally establish an account and stay with the same bank for life – well, those days are gone.

The fallout from the financial stress of 2008, coupled with new banking regulations, and an evolving digital economy has made the customer king. In the future, it will be the banks who offer products to support the individual customer needs that reap the reward of loyalty.

What has changed?

Rapid developments in technology has meant that customers have quickly grown used to a personalised approach led by digital. This in turn has changed the way they undertake everyday tasks, for example, using apps or online account management for banking.

Because of this change, customers now expect this quality of service from all digital providers. They want customer service that is immediate, personalised and digital, ultimately taking out any need for personal interaction.

It used to be that cost, risk and fraud were the core drivers of the banking business – you can now add digital customer experience to that list. It’s really all about the customer nowadays, and numerous board appointments of Heads of Customer Experience is evidence that banks will become more like digital-first services in other sectors.

But how do banks achieve this? They need to ask themselves a series of questions:

  • Are they making the best use of existing data to make this happen?
  • What’s the incremental value of new customer data to the business?
  • How relevant is all this to their decision-making?

There are so many sources of data now; the real challenge is bringing them all together in a way that makes sense. Banks need to use all of the available information – smartly. That means using the right data, at the right time, to create the desired outcome – in real-time.

Good analytics, predictive algorithms, and automated decision-making will contribute toward a strategy of making the right decisions quickly and fairly.

The only thing of which we can be sure is that the landscape will keep changing – and as such firms need to gain powerful customer insights so they can continue to deliver the best possible customer service. This insight may already be available, connecting the available data – overlaying with new data sources, can uncover a wealth of information that provides a foundation to a true single customer view.