Marketers in the financial service sector have to stay up-to-date with new marketing tactics. Furthermore, they also need to be a top player complying with new marketing and financial technology to cater to the consumer demands and also acquire adequate market share. A range of financial services is offered by banks and other financial institutions. But they haven’t yet realized the importance of personalized services in the financial services industry. With the rise of concern in data privacy and ever-emerging technology, the implementation of personalization in financial services is appreciated more.
What is personalization in financial services?
It is all about rendering valuable service to customers based on historical customer data and personal experiences. Personalization helps in building trust and long-term relationships with customers, which in return yields revenue and profit. Moreover, personalization in financial services helps to create an end-to-end experience that includes customer and operational data across the entire finance infrastructure. In brief, it helps businesses deliver solutions to customers even before they realize them as problems. Personalization in the financial sector is not a new concept. It is more like re-furnishing the existing business models that brought customers to banks before the advent of mass marketing.
Different types of personalization offered in financial services
There is a range of financial services offered by banks and other financial institutions. There are three basic categories of personalization offered in financial services. They are mentioned below:
- Real-time personalization
It depends on real-time, current data along with historical data to bring a personalized experience as it takes place. In the financial sector, the marketing team can utilize real-time personalization to make suggestions and recommendations for customers. This helps to generate both sale conversions along with customer engagement.
- Prescriptive personalization
The main objective of prescriptive personalization is to predict the needs and wants of customers based on their past data. While functioning within the realm of the goals and objectives of businesses, the marketers can utilize the prescriptive personalization method. It helps to create workflows that enable marketers to function and manage users easily.
- Machine learning personalization
As the name suggests, in this category of personalization of financial services, intelligent machine-learning algorithms are implemented. AI-based automation is used, helping the staff make informed decisions about the ways to reach out to customers based on their specific behavior and service preferences.
There used to be a time when banks and other financial institutions offered a range of financial services, starting from loans, to credit card issuing on a handshake. The advancement in financial technology enables banks and other similar institutions to know their customers in detail, whether it is their interests, preferences, and other aspects of their life journey. Thanks to the advent of modern technology such tasks happen at a scale that was unthinkable a few years back. In recent years, banks have realized the importance of incorporating tech-savvy companies and placing personalization as the pivotal of business models. Modern customers expect digitalized and personal interaction with banks and other financial institutions.