By Likhit Wagle
Do you ever wonder why your bank mails you various pieces of literature all at the same time – a new credit card, new home loan, a new line of credit for a new business venture? Clearly, this approach to mass-marketing reveals that your bank lacks a true understanding of your needs and your individual portfolio.
The good news is that these unsolicited, random offers may soon become a thing of the past. While many banks have talked about the importance of customer centricity over the past two decades, more today are ‘walking the walk’ and making significant investments to transform the customer experience.
For example, Banorte-Ixe, one of the largest retail banks in Mexico, is working to establish a new business model built on business analytics to improve its service to more than 20 million users. Similarly, Jordan Ahli Bank, a leading Jordanian financial institution, is transforming its core banking system to set new standards in customer service, as well as gear up for future growth. ANZ Banking Group is rolling out a digital assistant that regional bank managers will use to sift through every bit of information they have about a client, their own services, and updated market trends to make smarter, faster and more personalized recommendations for their two million wealth management clients.
This front office transformation – the alignment of every system, process and person to a customer – has come to the forefront as consumers have embraced digital technologies to bank, shop, communicate and manage pieces of their lives. Thus, banks are changing the way financial products are being created, delivered, sold and serviced. Banking leaders are also reassessing how they serve their customers, not as a large audience, but as individuals with personalized needs.
The net benefit of embracing customer-centricity: banks tailor experiences to the individual, while also becoming more profitable. Forward-looking companies always seek competitive advantage with new approaches to their businesses. Those who strategically use Big Data and analytics to deliver a more personalized banking experience win the loyalty of more customers in an increasingly competitive marketplace.