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EVOLUTION OF BANKING

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HARNESSING BIG DATA TO SERVE<br />

CUSTOMERS BETTER<br />

Banks and others also have an opportunity to personalise their online banking<br />

to each individual using Big Data insights. Websites will become dynamic and<br />

will change according to the personal preferences and interests of the user.<br />

A web experience that is more relevant to the customer will increase loyalty<br />

and cross-sales.<br />

Person centric database<br />

Precise customer<br />

segmentation allowing<br />

marketing of tailored<br />

products and services.<br />

Provision of personalised<br />

time and location<br />

dependent offers<br />

Be compliant<br />

Treat customers fairly<br />

Improve quality<br />

Address standardisation<br />

and evergreening<br />

Cut Costs<br />

Communication<br />

Processing<br />

Links all data about an<br />

individual to one person.<br />

<br />

<br />

Creates a single view<br />

of the person.<br />

<br />

Understand the effect<br />

of data<br />

Adding new data<br />

Increase Revenue<br />

Cross Sell<br />

Identify correct products<br />

Reduce Losses<br />

Understand exposure<br />

Understand behaviour<br />

The layout and marketing material on websites will change in real time to reflect<br />

what the customer has looked at previously or the user’s other activities in<br />

cyberspace. For example, if they have been searching for credit cards on Google,<br />

the website will update to display credit card products.<br />

Consumers will be able to fully personalise the look of their online banking<br />

portal, for example by changing which accounts appear by default on the home<br />

screen, or by attaching photos to accounts and “nicknaming” them to speed up<br />

navigation around the site.<br />

The font size of text and the contrast of colours will automatically change<br />

according to a user’s preferences.<br />

The offering of a personalised service helps to increase customer loyalty and<br />

advocacy as the customer feels they are receiving a good service. One of the<br />

best ways a bank can offer a personalised service is to predict an individual<br />

customer’s financial needs. In the future, banks will use big data analytics to<br />

understand a customer’s financial intentions and needs before they act on them,<br />

and send relevant marketing material ahead of time. Ironically this is what Bank<br />

Managers did for customers 25 years ago before banking changed!<br />

For example, a bank could determine a customer is considering buying a house<br />

from a 3rd party credit provider, and send information on specific mortgages<br />

the customer is likely to be approved for. Or the bank may understand from a<br />

customer’s smartphone location and credit card transactions that the customer<br />

has made a significant purchase from a furniture store and send the customer an<br />

SMS about upgrading their home contents insurance.<br />

The Evolution of Banking and Financial Services | 35

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