Personalization is not only a marketing term but also a necessity for the banking industry. Financial institutions that want to retain existing customers and attract new ones can increase their business volume by offering personalized products and services. Personalization refers to the system where the users determine the way they want to receive the product. The decisions are not made at the institutional side. It is about user experience and what users find convenient.
Personalization in Banking Services
Most people now maintain multiple identities across different platforms. Unless legally required, they may use a separate identity for each platform. For example, a user may log in to a blockchain platform with one identity but use another ID at another platform. There is a lesson for the banking industry here that insists on a single identity model. A person’s real identity can still be identified by all platforms where the person is registered with different IDs.
A Strong API
Financial institutions initially did not realize the importance of API but they cannot make this mistake again. APIs should not be used to solve only internal tech issues. They should be user oriented and take into account how the users want to deal with the bank. A strong API can be used to collect consumer data that helps in building a better consumer identity list.
The Key Personalization Strategies
Personalization is not limited to offering only personalized banking products. It goes beyond that. Personalization is more about how the customer experiences the banking products and services. The winner of the digital banking competition will be those banks that can get control over the identities of their consumers and offer them better experiences. This can be done with strong personalization of banking services. APIs can make it happen as they make the customers trust the banking setup and submit their personal financial data.
Build an Adaptable System
Banks must offer flexible solutions that help consumers customize the banking products and services. No two consumers have the same financial requirements. A bank that can customize its offers based on the specific needs of a prospect will get the deal. The steps necessary for this purpose can be built in the system with the help of digital technologies.
Consumers look for a financial institution they can trust. They are getting used to personalized products and services, and expect similar experience when dealing with the banking sector. Banks are realizing these new trends and adopting new practices that improve customer experiences with personalization and customization.
The article has been published by the editorial board of the Fintek Diary. Happy Reading. For more information please visit www.fintekdiary.com
