In a recent Celent report, over 60% of banks in North America and Europe have identified customer retention and engagement as top strategic priorities, signaling a growing need for solutions like Zafin’s Tiering Capability to deepen customer relationships and drive long-term profitability
Responding to the increasing demand for hyper-personalization in banking, Zafin, a global provider of SaaS core modernization and transformation solutions, has announced its new Tiering capability. Zafin’s Tiering capability represents a significant advancement that builds on the company’s Dynamic Cohorts to enable banks to move from static segmentation to behavior-based customer management.
Combining Tiering and Dynamic Cohorts capabilities means banks can segment customer data based on their behaviors and demographics, creating more personalized offers and engagement strategies. This accelerated customer retargeting approach leads to more tailored communications and incentives, nurturing stronger customer loyalty. Even more, powered by Zafin’s Data Fabric, which pulls data from internal and external sources—including open banking APIs—Tiering capability provides a holistic view of each customer, creating real-time, data-driven decisions that differentiate Zafin’s tiering from traditional models.
“In the past, banks relied on tweaking product pricing to attract customers, but that’s no longer enough,” said Shahir Daya, Chief Technology Officer at Zafin. “Compelling value propositions are relationship-wide, and that’s where tiering comes in. Tiering is a loyalty-building tool, but its success depends on how well a bank can connect various services into a unified, beneficial customer experience.”
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As competition within the banking sector intensifies, fueled by the rapid rise of neobanks and fintechs, traditional financial institutions are under pressure to remain relevant and meet heightened customer expectations. Savers who previously remained loyal to banks are shifting to high-yield accounts and money market mutual funds. While many banks are offering more competitive deposit rates, there is an opportunity to improve traditional tiering strategies to retain customers in today’s market conditions.
“Banks typically offer tiers that are based on customer balance. However, that model is increasingly narrow. It doesn’t give banks the full scope of a customer’s relationship, nor does it incentivize meaningful engagement,” Shahir explained. “With Zafin’s advanced tiering capability, banks can consider a wide range of attributes, such as digital interactions, combined account balances, customer behaviors, or even non-financial factors like loyalty program participation to build customized, multi-dimensional tiers.”
According to Colin Kerr, Principal Advisor at Celent, the banking sector is undergoing a significant shift toward personalization. “The growing need for banks to offer more attractive deposit options and differentiated value propositions aligns with the trend toward personalized tiering solutions,” said Kerr. “We’re seeing more banks shift from the ‘one-size-fits-all’ loyalty strategies. There’s an industry movement toward multi-dimensional tiers that capture the depth of a customer’s relationship and provide actionable engagement insights. An advanced tiering capability responds to these market pressures, creating a comprehensive framework that aligns customer value with the bank’s strategic priorities.”
Zafin’s Tiering capability includes extensive analytical capabilities, enabling banks to track enrollment, tier upgrades, and customer activity in real-time. Its unique ability to segment customers based on multiple factors, such as digital versus in-branch engagement, gives banks a clearer understanding of their cost-to-serve and drives more strategic investment in customer acquisition and retention.
Unlike traditional models that focus exclusively on high-balance customers, Zafin’s Tiering capability provides banks with a comprehensive, 360-degree view of their clients. This approach equips banks to reward a wider range of customer behaviors across multiple services rather than simply incentivizing account balances. The outcome is a more tailored customer experience, driving deeper engagement and increased deposit retention while boosting profitability.
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