Personalized digital experiences are taking over everything – from food delivery to clothing subscription services. As consumers become accustomed to these hyper-personalized experiences, they yearn for similar, simpler interactions in their financial lives.
Financial service providers (FSPs) are looking to meet this demand using enriched financial data, artificial intelligence (AI) and machine learning to assist with decision-making, build personalized insights, and create new products and services. These tools build a comprehensive view of customer relationships, allowing FSPs to optimize personalized applications and give advice regarding products and services. Such hyper-personalization extends FSPs’ relevance as an integral part of their customers’ lifestyle and bolsters bottom line success by addressing consumers’ desires for tailored experiences through accurate data enrichment, personalized insights, and contextual peer benchmarking.
Building personalized insights, gaining operational efficiencies
Of consumers who’ve abandoned business relationships, 33% said it was because of a lack of personalization and acute understanding of their individual needs. The retail industry understands this, and led by companies such as Amazon, is at the forefront of providing hyper-personalized services and reaping the rewards. Retailers who invest in hyper-personalization realize a 20:1 return for every $1 invested.
Data aggregation and advanced transaction data enrichment allows FSPs to build a more comprehensive picture of each consumer’s financial standing and behaviors overall. These insights then help FSPs and consumers gain clarity into purchasing tendencies, savings needs and more by using clear, easy-to-read snapshots that users can customize. By implementing and deploying personalized digital experiences, FSPs can automate and digest engagement reports and act on transactional behavior patterns and trends.
However, optimized data aggregation, leading-edge AI and machine learning techniques for analytics don’t just yield personalized insights. These same technologies enable operations leaders at FSPs to predict trends, forecast demand, better measure efficiencies and expand their key performance indicators. They also enable chatbots, which Juniper estimates can save employees four minutes each and 70 cents per transaction.
Marketing segmentation, peer benchmarking and financial wellness tools
Using hyper-personalization, FSPs can improve marketing segmentation, sales and delivery over the entire customer lifecycle – from acquisition to engagement to cross-selling to increasing consumer stickiness and preventing churn. The comprehensive data held at FSPs can also support peer benchmarking to benefit both the institution and the consumer. Consumers can use these leading-edge data tools to compare their financial situations to their peers, while FSPs can hone their marketing efforts to different personas’ behaviors and needs.
Another high-value service made possible by hyper-personalization is financial wellness guidance. Not only do most Americans say they never received the opportunity, but it’s an area in which FSPs are uniquely equipped and trusted to deliver. Providing consumers with financial wellness tools will go a long way in helping them on their financial journey and the FSP to become an integral part of their lifestyle.
Opportunity and necessity in hyper-personalized digital experiences
Consumers demand personalized service and insights, particularly from the companies handling their money and especially through digital delivery systems. Two-thirds of Americans now claim online and mobile as their primary banking access channels. That insight can only be achieved by breaking down data silos so all systems and data sources can work together in harmony. It can be a lot of work, but the payoff is sizeable. By aggregating all customer data and using it to provide a personalized and contextual digital experience, FSPs stand to increase customer retention by 5% and profits between 25% and 95%
Envestnet | Yodlee Insights Solutions
Built on the most comprehensive and accurate financial data coverage in the industry, the Envestnet | Yodlee Insights Solutions allow FSPs unique client wallet visibility, peer benchmarking and simple delivery of personalized digital experiences for a holistic view of transactions across a consumer’s held and held-away activity. It can be delivered across all FSPs channels through simple APIs. Envestnet | Yodlee then can enable FSPs to optimize digital financial experiences with the most accurate data enrichment, actionable insights, unique peer benchmarking, and personalized views so FSPs can deliver what they do best: financial services.