Personalized digital banking

In the digital world, everybody owns a smartphone. The creation and collection of customer-centric data have drastically surged over the past few years. Many industries are working closely with customer data to unleash hyper-personalized experience. For example, everything starting from navigation apps to online shopping is powered by artificial intelligence and recommendation models. The increase in such tailored applications has pumped interest among commoners. Now, they are seeking out AI-driven personalized digital banking that could accelerate the financial market as a whole.

Compared to other sectors, the banking and finance companies have been using artificial intelligence for a long time now. But the sophistication of personalized digital banking caught people’s eyes in the recent past. Banks and financial institutions are embracing artificial intelligence and machine learning to offer personalized services that seamlessly integrate technology with real-world needs. From connecting with customers to managing accounts and picking the right candidate for loan availing, everything has become hyper-personalized. These personalized digital banking services provide a customer-first approach to enhance the possibilities. IndustryWired has listed the top personalized digital banking trends of 2021 that are in use.

Top AI-Driven Personalized Digital Banking Trends

Leveraging a Multi-Channel Approach

While providing a personalized banking experience, financial institutions must ensure that the data they collect is not from a single source. Single source data could be misleading and won’t deliver the result banks expected. Therefore, they should opt for a three-dimensional view of a single consumer. As a result, unified marketing measurement will become the center of hyper-personalization. 

Convincing People to Move from Traditional to Digital Banking

Even in 2021, people are still stuck at brick-and-mortar banks. According to a Business Insider report, over 73% of Americans felt that they are happy with their current banking experience. The percentage drastically increases in other countries, and especially, in rural areas. Therefore, financial institutions are engaging in initiatives to make people move from traditional to digital banking. They are coming up with disruptive trial methods and personalized digital banking services that could change people’s perspectives. 

Providing the Right Service at the Right Time

Timing is very important in hyper-personalization. Even though if a certain financial service is good and comes with extraordinary benefits, it won’t work on the clients if it is presented at the wrong time. Therefore, financial institutions should use AI-powered marketing analytics to identify the best timing for promotions. They ensure that analytics cover the people it concerns.

Using Media Mix Modeling

Learning the factors that affect or paves the way for hyper-personalization is very important. Media Mix Modeling (MMM) can help determine the result of overall sales performance. It allows marketers to see how certain facets of their marketing mix impacts the personalized digital banking experience. Banks and financial institutions can work closely on those fronts to make it even more advanced.

Smartphone as the Catalyst of Digital Banking

 A report suggests that one in seven people use mobile apps to manage banking experience in the US. This is a sign that introducing personalized digital banking through smartphones is the best way to attract more users. Banks and financial institutions are leveraging hyper-personalized chatbots, payment options, and transactions through mobile phones to ease the burden on users. 

Bridging the Gap with Emotional Connection

The pandemic has changed the mindset of people. Many business organizations are already facing the heat of customer preference as they don’t match the existing data. This is where emotion recognition technology takes center stage. Besides, digitization alone has distanced people from physical infrastructure and not everybody is okay with the change. Therefore, financial institutions should use emotional AI to address their individual concerns while also fulfilling commercial needs.

Unraveling Remote Access in Minimum Time

A major reason for people moving from traditional to financial banking is to reduce the time they spend on bank queues. Therefore, companies are working to ensure that even when they leverage AI-driven personalized digital banking services, it doesn’t consume much time. For example, opening a new bank account or doing transactions need to be really quick.