EVOLUTION OF BANKING

HARNESSING BIG DATA TO SERVE
CUSTOMERS BETTER
Banks and others also have an opportunity to personalise their online banking
to each individual using Big Data insights. Websites will become dynamic and
will change according to the personal preferences and interests of the user.
A web experience that is more relevant to the customer will increase loyalty
and cross-sales.
Person centric database
Precise customer
segmentation allowing
marketing of tailored
products and services.
Provision of personalised
time and location
dependent offers
Be compliant
Treat customers fairly
Improve quality
Address standardisation
and evergreening
Cut Costs
Communication
Processing
Links all data about an
individual to one person.
Creates a single view
of the person.
Understand the effect
of data
Adding new data
Increase Revenue
Cross Sell
Identify correct products
Reduce Losses
Understand exposure
Understand behaviour
The layout and marketing material on websites will change in real time to reflect
what the customer has looked at previously or the user’s other activities in
cyberspace. For example, if they have been searching for credit cards on Google,
the website will update to display credit card products.
Consumers will be able to fully personalise the look of their online banking
portal, for example by changing which accounts appear by default on the home
screen, or by attaching photos to accounts and “nicknaming” them to speed up
navigation around the site.
The font size of text and the contrast of colours will automatically change
according to a user’s preferences.
The offering of a personalised service helps to increase customer loyalty and
advocacy as the customer feels they are receiving a good service. One of the
best ways a bank can offer a personalised service is to predict an individual
customer’s financial needs. In the future, banks will use big data analytics to
understand a customer’s financial intentions and needs before they act on them,
and send relevant marketing material ahead of time. Ironically this is what Bank
Managers did for customers 25 years ago before banking changed!
For example, a bank could determine a customer is considering buying a house
from a 3rd party credit provider, and send information on specific mortgages
the customer is likely to be approved for. Or the bank may understand from a
customer’s smartphone location and credit card transactions that the customer
has made a significant purchase from a furniture store and send the customer an
SMS about upgrading their home contents insurance.
The Evolution of Banking and Financial Services | 35