Where Personalized Value Matters the Most
Consumers are ready for personalization in their banking routines. A 2019 Accenture study on consumer patterns in financial services outlines four bank consumer personas: the pioneer, the pragmatist, the skeptic and the traditionalist. Of the four groups, representing 47,000 banking and insurance customers globally, only the traditionalists — which make up about a fifth of survey respondents — showed any true resistance toward using personalized data to help improve the customer experience. Even then, 55 percent of traditionalists still said personalization is what they wanted.
Among the largest persona group, the tech-averse skeptics, 80 percent of respondents said they would be willing to share their data in return for personalized services. But consumers expect more in return from personalization to make giving away their data worthwhile.
“Personalized services should also demonstrate added value. It is not enough just to tell consumers how they are spending their money,” the Accenture report states. “Instead, providers should show them how they can save money and take advantage of offers.”
How AI Can Help Advance the Digital Experience
One way to translate this data into value might be through AI tools, which could not only improve customer experiences but also save banks money. According to a Business Insider Intelligence report from last year, front-office uses of AI had the potential to save the banking industry an estimated $199 billion by 2023.
AI-based approaches, according to author Eleni Digalaki, could help simplify customer interactions through the sharing of personalized insights with customers, by handing over simpler customer interactions to bots or voice assistants, and by easing authentication processes.
“Certain AI use cases have already gained prominence across banks’ operations, with chatbots in the front office and anti-payments fraud in the middle office the most mature,” Digalaki writes.
Personalization, of course, isn’t limited to product recommendations or ways to save money while surfing the web. It can also prevent theft. By catching unusual charges through fraud deception capabilities, banks can help consumers immensely, and save them money to boot.