There is more data in the world than there ever was, and the growth of this data is being marked exponentially. The banking & financial services sector is completely focused on customers. The relationship between the bank and the employee is marked by trust and loyalty, and customers look at the banks to improve their daily interactions and make it more integrated and convenience. Digitization will not only improve the life of the customer, but will also help improve loyalty and retention of the customer.
Close to 70% banks claim there is a need for customer-centric approach in order to drive in more engagement, which requires a deep understanding of the customer’s needs. According to the results of a popular survey, only 37% of the bank customers believe that their needs have been understood and fulfilled by the banks. This is quite surprising given the fact that there is a lot of data available with the banks, which they can look into to understand the customer’s behavior and interaction with the bank. Most financial institutions look at winning customers; only a few are working towards retaining them using the customer analytics they have at their disposal.
According to researchers, the biggest reason why banks are unable to unleash the power of big data is the organizational silos. There aren’t enough resources available for data analytics. Apart from this, organizations believe that data management costs a lot, and they don’t really include big data in their strategies, which is why they are unable to offer analytics’ based results and engagement.
With the silos, the banks lack a 360-degree view of their customer, as all the departments are in the silo form. This lack of data integration stops them from getting a holistic view of the customer. The banks now have to think beyond transactions and winning customers, and need to focus more on retaining them.
How Data-Driven Analytics Helps Retail Banks?
In the recent times, banks have access to new customer analytics’ tools that have set out to improve the way customers engage with the banks, and derive benefits. The transaction data i.e. the data from ATM, POS, mobile internet as well as branch service channels is easily available to the banks. They need to combine this data with regional demographics and location-based data to achieve customer analytics’ information in real-time. Banks can begin acting, and even reacting to the needs in seconds. The service channel availability can be improved in order to provide the necessary transaction abilities to the customer. The delivery channels for the customer can be improved with these analytics’ data.
Here we will talk about three major areas where banks can benefit from customer data availability.
Helps in Retention
Customer analytics have helped banks gain a 4 % lead over the banks that have not incorporated these analytics. To retain the customers, banks need to understand how customers interact. While Big Data analytics helps increase the lead generation potential, the solutions help improve customer acquisition. As a bank, you should ideally focus on multichannel data to induce strategic decision making and increase the lead conversions. With data availability, you know what your customer expects from you, and you can easily improvise your website accordingly. Advanced analytics can even help credit risk estimation, as this will explore a wide range of datasets based on a score of factors to get the ideal results that will benefit in estimation.
Improve Top Line Growth
Key decision makers need accurate data to make the precise and right decisions that will add value to the banks. With Big Data analytics, banks can target micro customer segments by combining the various data points such as past buying behavior, demographics, sentiment analysis etc. With such interesting combination, the banks can drive in engagement, experience and loyalty, which results in increased sales & profitability. With predictive analytics, you can increase the conversion rates and get a ten-fold increase in the top line growth.
The absolute ultimate aim of any bank or financial institution is to increase customer retention. Your data points are high and so are the numbers of customers you are catering to. You need a model that will help derive the probability for this chunk of audience interacting with numerous data points. Automating this probability calculation and identifying the risks early on will help you identify the factors that will lead to attrition. Data analytics mitigates the risk of customer attrition.
Banks and financial institutions are slowly incorporating data-drive analytics for better prospects and increased conversions. Silver Touch has the right expertise and experience in Big Data Analytics, Financial & Banking IT software solution. We have been working through years to offer better prospects to this industry with our innovative solutions. Get in touch with us at firstname.lastname@example.org to know more about our solutions.