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Hyper-personalization in Banking: The Tech Journey to Serving a Segment of One

Hyper-personalization in Banking: The Tech Journey to Serving a Segment of One

Today’s customers expect every brand, regardless of industry, to tailor products and offers not just to people like them, but to them specifically. Welcome to the era of hyper-personalization. While traditional personalization relies on demographic data to tailor products to customer segments, hyper-personalization leverages real-time data to create customized offers that meet an individual’s immediate needs.

For the financial services industry, hyper-personalization enables banks to offer relevant financial products and services at the right time for each individual customer. By rethinking the customer experience and implementing the right technology, banks can develop a 360-degree view of the customer, connecting customer activity and data with potential products in real-time.

Can Hyper-personalization Work with Legacy Technology?

Banks can leverage a platform that enables hyper-personalization even if they’re still in the process of digitally transforming existing core banking systems. The initiatives can occur in parallel to each other, allowing them to use their legacy IT systems while launching a new hyper-personalized approach.

Individual customer needs change quickly. To stay ahead, banks must adopt an agile approach to hyper-personalization, evolving the strategies based on real-time customer feedback and changing market dynamics.

Additionally, hyper-personalization requires rethinking the entire customer experience across the organization. Banks must design an intuitive customer journey that spans all the customer touchpoints. To do this, they need to make a cultural shift from a product-centric approach to a customer-focused one.

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Building the Foundation for Hyper-personalization

By developing the following capabilities, banks can provide customers with a deeper level of digital, personalized service:

1. A 360-degree customer view

Leading banks have a 360-degree view of their customers, meaning they understand their activities and needs across business lines and beyond. This comprehensive view of the customer enables them to understand more about what financial products and services may be relevant to individuals at specific times, evolving with life milestones and circumstances.

2. Real-time pricing and products

Banks also need access to product and pricing information in real-time. By leveraging a product and pricing catalog solution, they can remove silos and barriers from the customer experience, creating tailored offers that are personalized to the individual based on the 360-degree view.

3. An abstraction layer

An abstraction layer eliminates data silos, enabling banks to connect their customer view with their core banking solution and the pricing and product information. The layer works in tandem with legacy systems and cloud applications.

The Perks of Hyper-personalization

Hyper-personalization provides benefits to customers and companies alike. Offering banking customers individualized product and service offerings that meet their immediate needs increases customer engagement—customers feel seen and understood as individuals.

Banks may also see increased customer loyalty and spending as customers take advantage of offers designed with their unique needs in mind. This relational approach applies throughout the customer journey, ultimately driving growth across the organization.

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[To share your insights with us, please write to  pghosh@itechseries.com ]

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