By Daniel Haisley, Chief Product Officer
Today’s consumers demand banking experiences that mirror the level of personalization delivered elsewhere online. And, providing them with this type of tailored experience is critical to driving their satisfaction and loyalty. To meet your account holders’ expectations, your bank or credit union must learn to use data effectively to understand their needs.
Data sources at your disposal include your core, digital banking, user analytics, and aggregated accounts. The question is: How do you leverage these sources to provide the most value for your account holders?
We’ve compiled four digital banking use cases to show how you could tap into the vast potential of your available data. Each demonstrates a realistic initiative and its projected financial impact. Using data to identify opportunities like these can help grow your business, increase efficiencies, or streamline your operations.
Use Case #1: Lowering the cost of printing bank statements
Paper bank statements are expensive for your financial institution to produce, and you have a goal to reduce this cost. Data shows almost half of your account holders are still receiving paper statements. One idea to save costs could be to deliver a tailored message to these account holders urging them to move to digital statements.
How you could accomplish this: Using your available data, segment your paper-statement-receiving account holders by age, relationship, and location. Then, create a targeted campaign to send security education mailers explaining the benefits and steps to sign up for digital statements.
Your projected results: You could realize up to $.25 – $.75 per user per month in savings.
Use Case #2: Keeping the deposits you currently have
You know many of your existing account holders currently send money to other financial institutions. Millions of dollars (or more!) are leaving your financial institution every month via outgoing account-to-account (A2A) transfers. What can you do to keep these funds at your financial institution?
How you could accomplish this: Your available data identifies an audience of retail customers who are initiating outbound A2A transfers on a recurring basis. After you build this audience, create a “go-local” campaign and savings drive that touts the benefits of opening a savings account at your institution.
Your projected results: With quality messaging, your institution could expect to stem 10-15% of recurring outbound transfers, resulting in millions in retained deposits.
Use Case #3: Finding additional deposits
According to recent research from The Harris Poll and Apiture, 61% of consumers in the U.S. bank with more than one financial institution, averaging nearly three accounts per consumer. So, if your account holders spread their funds among several banks or credit unions, how can you get more of their business?
How you could accomplish this: Use your data to identify retail account holders that retain a direct deposit at a competitor and employ A2A transfers on a recurring basis to push funds to your institution. Armed with this information, launch a branch calling campaign targeting these account holders to communicate the benefits of direct deposit accounts at your institution.
Your projected results: Your success rate could be as high as 30% for converting discovered transfers into direct deposits.
Use Case #4: Growing your wealth business
Your account holders diversify their wealth, often using competing wealth services and diluting the funds they hold in your institution. In fact, the average $1B institution has account holders with more than $5B in funds held at large brokerages, which could otherwise be held in the wealth services at your bank or credit union.
How you could accomplish this: Identify account holders who are regularly making transfers to these brokerages and create a calling campaign to promote wealth advisor services at your institution.
Your projected results: Your institution could enjoy deeper relationships with account holders who, in aggregate, will be moving tens or even hundreds of millions of dollars to be managed with their community institution.
Using The Power of Data to Get Ahead
The net result of a robust data intelligence solution is that you can deliver the right solution for your account holders at the right time. The ability to glean insights, segment your data, and build relevant audiences allows you to create personalized experiences — increasing your users’ satisfaction, and ultimately bolstering your business.
Apiture’s Data Intelligence solution can help you take action on these and other use cases. Download this guide to learn how Apiture can help boost your success through data intelligence tools.
