Data Evolution: Harnessing Intelligent Data to Improve the Customer Experience & Uncover Growth Opportunities – Banking Exchange

Its undeniable that the pace of digital transformation has accelerated. The pandemic sped up the creation and adoption of digital platforms across a number of industries, including financial services.

More than ever, banking customers are using mobile apps and online platforms to handle financial transactions. This increased use of digital tools has created a wealth of valuable data that financial institutions can leverage to pursue customer intelligence initiatives, but only if the right next-generation banking solutions are in place.

Taking Advantage of Customer Intelligence

Customer intelligence involves the gathering and analyzing of customer data to get a better understanding of their behaviors and activities in order to strengthen customer relationships, provide greater customer value and enable data-driven decision making. For banks, customer intelligence can be an incredibly valuable predictor of growth and profitability, especially given increased adoption of digital service channels and the untapped data sources that go along with it.

However, deriving key data insights to better understand evolving customer needs and respond to them with precision, speed and efficiency requires intelligent data solutions.

Leveraging the Right Tools to Deliver Smart Data

By using next-generation banking solutions, financial institutions can glean meaningful data to learn what their customers value most, and better determine how to give them what they want. This not only benefits the customer by improving their experience, but benefits the organization by helping to attract and retain customers while increasing revenue.

According to McKinsey, A survey of US retail banking customers found that at the banks with the highest degree of reported customer satisfaction, deposits grew 84% faster than at the banks with the lowest satisfaction ratings. In addition, Research shows that the stronger the experience and the more satisfied the customer, the more likely it is that the bank will generate higher revenue: a more satisfied customer typically accounts for approximately 2.4 times more revenue than a neutral customer.

https://www.mckinsey.com/industries/financial-services/our-insights/reimagining-customer-engagement-for-the-ai-bank-of-the-future

This is where harnessing intelligent data comes in. With the right technology in place, banks can assess transaction data in real time to deliver personalized insights to customers and uncover upsell and cross-sell opportunities for new products and services based on customer actions. In this way, data takes the burden off the customer when it comes to figuring out how to navigate a digital banking app or determine what next steps to take. An easy and intuitive experience equals a positive one.

But, before useful data aggregation can occur and actionable insights can be realized, financial institutions must overcome two pervasive issues: integration of legacy systems and breaking down silos.

This takes a solution that can, in effect, stitches different experiences together, from front-end user interfaces to back-end data applications. Many financial institutions use an array of digital platforms and databases that arent necessarily aware of each other or able to communicate with one another. With the right solution in place, legacy systems can seamlessly share information and overcome fragmentation by aggregating siloed dataso that all an end user ever realizes is a great, engaging experience.

5 Ways Intelligent Data Can Improve the Customer Experience

Bank customers have come to expect relevant, personalized digital experiences that match their digital experiences in other aspects of life. A financial institution that deeply understands their needs will win out over one that offers generic, cookie-cutter experiences.

For a financial institution to grow and thrive in modern times, it must cater to the customer experience. Here are 5 ways the use of intelligent data can inform customer offerings.

Final Thoughts

Leveraging customer intelligence and smart data can help financial institutions foster greater connections with customers and create a more meaningful, thoughtful experience. But as banks make the move to invest in technology that makes this possible, its important to remember to be deliberate in how its rolled out.

Many financial institutions have data that goes back decades, and not all of it is useful. It might be repetitive, incorrect or simply outdated. Its best to ensure only quality data is used. Its also crucial to achieve multiple integrations via varying data sources. This includes data generated via chat or with a voice assistant, and even via social media, in addition to CRM systems and credit systems. But, to get there, start by mining just one data set and widening the net from there. It will help to cut down on errors while simplifying the data aggregation process.

Achieving data aggregation is where banks need to be. To set the stage for future growth and success, financial institutions must embrace data and analytics to transform the business in a way that exceeds evolving customer expectations. That will require a digital makeover across all touchpoints within the organization.

By Marc Jones, CTO, Alkami

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Data Evolution: Harnessing Intelligent Data to Improve the Customer Experience & Uncover Growth Opportunities - Banking Exchange