As more consumers move to digital banking, savvy financial institutions are refining strategies around data collection and customization. Trends show that today’s consumers are more amenable to data collection if a business provides something in return. In fact, 71 percent of consumers today expect personalization in their online interactions and 76 percent get frustrated when personalization doesn’t happen, according to this 2021 McKinsey report.
The downside is that analyzing and using your available data can be costly. Even if you have limited resources to invest in a data intelligence strategy, there are ways to optimize the power of the information you have at your disposal.
First, you should determine how to leverage data to improve the customer experience. By using insights that are readily available — such as engagement analytics, spending patterns, and benchmark comparisons to your competitors — you have a place to start.
Next, evaluate internal resources and expertise at your institution to determine the level of autonomy you’d like to have over your data intelligence. Many large financial institutions already have the budget and the know-how, but smaller institutions may lack available resources. Partnering with a third-party data technology provider can provide a you with a robust set of financial data to feed insights. Using this intelligence, you can devise your own analysis and dashboards and leave the data mining and maintenance to the third-party provider.
Your final step should be to build your institution’s data intelligence strategy. A good resource for gathering information is a BAI data report from industry experts who share insights on how to use data to your advantage. With a data strategy in place, you can start offering your customers or members what they want — a personalized experience based on what you know about them.
According to McKinsey, companies that excel at personalization generate 40 percent more revenue from those activities than companies who are just average. Armed with a good data intelligence strategy, you should begin to see increased returns from the effort you have invested.
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