3 Ways to Leverage All That Banking Customer Data  

Banks have invested heavily in data solutions as they seek to provide modern, digital customer experiences. But, collecting data and leveraging it are two very different things. Are banks making full use of valuable market intelligence? Can they use data-driven insights to fend off the incursion of Fintech and neobanks, to deliver more personalized banking interactions and tailored digital services? Here are 3 ways you can move from collecting data to actually using it to acquire and retain more banking customers… 

Are Banks’ Tech Investments Paying Off? 

Did you know that a typical regional bank has over 1,500 customer journeys? That many customer interactions can generate tons of valuable customer data and banks worldwide have recognized this, investing over $650 billion in information technology to better understand their customers. 

Yet, despite a 38% increase in technology spending, banking customers still seem to be lacking the experiences they crave. Only a quarter say they are completely satisfied with the level of personalization they currently receive from banks’ digital tools. When asked what would make for a more complete digital experience, nearly 70% show a preference for nudges and alerts for things like like overdraft risks and the same amount want more personal recommendations for day-to-day money management, especially as the cost-of-living crisis strains household budgets.  

Though most customers say they are satisfied with their current banking provider, clearly, there is a need to do better because overall loyalty is declining. According to J.D. Power, over 13% of those surveyed say they are likely to switch banks in the next 12 months. More concerning is that fewer than half (46%) of bank customers say they are likely to remain with their current bank over the long term. 

Why Data Analytics Are the Way Forward 

Reasons for leaving are not always about money – the same survey by J.D. Power showed that 29% of banking customers leave because of high fees, but over 25% leave because of poor service experiences. As Jennifer White, senior director of banking and payments intelligence at J.D. Power explains, “Despite widespread efforts to improve the customer experience, many banks are missing the mark on critical customer touch points… and need to do a better job of focusing on proactively solving problems and delivering personalized advice.” 

Most bank executives understand the need to offer a superior digital experience that balances speed, personalization, and ease, which is known to increase Net Promoter Scores by up to 25 points. Many also understand that data analytics can give them a valuable window into changing consumer preferences, and that driving better customer experience, especially in the digital realm, will lead to greater profitability. Last year, over 40% of banking leaders ranked data analytics as their first business priority, and this year, that number has increased to 42%.   

The irony is that most banks already have this crucial data at their fingertips. Yet, all that data is useless unless you know how to turn it into actionable insights that lead to greater customer satisfaction, acquisition and retention.  

Three Ways to Leverage Banking Data 

So, how can banks use all that data in real and measurable ways?  

Use Data to Become Trusted Advisors 

We are living in an era of economic uncertainty where 22% of consumers feel “somewhat financially insecure or vulnerable”, particularly Gen-Z. People are focused on how best to manage their money and how to save. Banks can answer that need and position themselves as trusted financial advisors by offering personalized advice through a mix of self-service digital tools and assisted customer service channels. Banks can use AI and countless financial data points at their disposal to improve customers’ fiscal well-being. One example being improved, rapid credit checks based on customers’ historical financial data, or more targeted investment recommendations, so people can reach their financial goals quicker and easier. 

Use Data for a Seamless Service Experience 

Customers like to interact with financial institutions remotely, with 40-68% using mobile apps to do their banking. Yet, despite recent tech advancements, customers still show an overwhelming preference for human connection. This forces banks to juggle a multitude of CX channels, which can lead to data silos, potential errors, and inconsistent customer experiences. However, if banks can use consumer data to learn the optimum transition points between digital self-service tools and personalized, human touchpoints – for instance, a seamless system that can switch from chatbot support to a live, human agent once a difficulty is detected- it could help maintain trust and satisfaction in a competitive financial landscape.  

Use Data for Enhanced Security 

RFI Global’s latest data shows that security concerns are top of the list when it comes to digital use barriers and drivers of customer dissatisfaction. Yet, higher security measures can worsen the digital banking experience, making customer authentication slower and more difficult. Luckily, Gen AI can help to speed up this process, simultaneously checking all the required pieces of data to ensure customer authenticity and confirm a person’s identity. AI can also analyze transaction patterns and spot unusual behaviors, before they turn into financial losses, which goes a long way towards instilling consumer trust. It can even be programmed to check for regulatory compliance and provide alerts for potential breaches or compliance gaps. 

Tap Into the Wealth of Data 

Analytics can provide a wealth of insights into customer behaviors and preferences. If banks can leverage all this banking data to address consumers’ needs, they could level the playing field with emerging neobanks and Fintechs, boosting customer acquisition and retention. Itelligence’s® advanced analytics can help you leverage every click, every transaction, creating a deeper window into your customers. Remember, those who can anticipate and most quickly meet customer needs will be the ones who come out ahead.  

Want to partner with itel for your banks’ CX services? We not only have proven expertise in financial services and collections. Learn how we can leverage our AI platform, itelligence® to enhance your use of data analytics and boost contact center performance.