How big banks can re-claim a piece of the pie (Part 2)

One of the hottest topics at every industry event I’ve attended recently is the threat of fintech disruptors.

How big banks can re-claim a piece of the pie (Part 2)

Clearly, the first step for banks to win back a piece of the pie is opening up data across the business, breaking down the data silos and connecting the dots in order to gain a single, 360-degree view of the customer. That means the full organisation can see a customer’s journey, understand their preferences and provide them with an insightful service every single time. Every service creates an additional customer “touchpoint” – useful for gathering the data that’s needed for a holistic view.

And empowering employees with the insights they need to take a customer-centric approach means that data simply must be shared consistently across the business in order to truly know and understand the customer and offer them service that delights them across any channels with which they choose to interact.

For example, if a customer calls their bank on Monday to inquire about lending and borrowing, requests further information about a loan in their app on Tuesday and walks into a branch on Wednesday, the teller should know exactly where the customer is in their journey and have relevant offers and advice ready. I’m delighted to see that many UK banks are already starting to do this.

Personalisation at scale

What’s even more exciting is that leading banks are taking it further. When data is shared in the form of this single customer entity, it can provide the foundation for all functions of the bank – selling, onboarding, servicing, cross-selling and collaborating. Product teams are therefore focusing on the overall customer experience, and it’s here that these banks can really make a difference compared to disruptors. Having personalised offers across a broad spectrum of services – banking, mortgage, insurance, bill payment and more. Now add in the convenience of physical branches, and you can see why it’s a very compelling proposition.

Getting predictive

In the very near future I think we’ll see successful banks enhancing this personalisation with artificial intelligence and predictive intelligence technologies. Customers now expect every touchpoint with companies – including banks – to be immediate and proactive. In fact, 65% of consumers expect companies to interact with them in real time. What’s more, according to Salesforce’s 2016 Connected Customer report, 45% of consumers say that by 2020 they will switch brands if a company doesn’t actively anticipate their needs.

Today’s technology is able to piece together all the interactions a customer has with a company including their purchase history, behaviour on a website, consumption of digital ads, and conversations with customer service. Predictive intelligence can use this insight to help banks serve up the perfect offers for each customer, from rewards credit cards to loans, and onwards to financial planning and advice.

Work smart, win big

It’s always been the case that the firms who put customers at the heart of their business are the most successful. These days, responding in real time and anticipating needs helps ensure the customer has exactly what they need and gives them no reason to look elsewhere. This is turn allows big banks to expand their share-of-pocket. In short, retail banks today have a unique opportunity to drive loyalty through proactive engagement and now is the time to take advantage of it – before fintech disruptors drive a permanent wedge into the market.