As consumers increasingly seek more individualized experiences, financial institutions must find ways to deliver value and connect with customers through more personalized digital experiences. By showing you understand each user’s unique needs and preferences, and are prepared to support them accordingly, you can increase customer engagement and trust in your institution.
To help you do this, 20 Forbes Finance Council members share personalization strategies financial institutions can implement in their suite of digital products and services. From leveraging data analytics for individualized advice to offering customizable tools, these strategies can improve customer satisfaction and help build long-term relationships.
1. Avoid Treating Customers Like A Number
Don’t treat customers like they’re just a loan number or file. They’re human beings, so you want to get a little more acquainted with them. Try discussing business over a cup of coffee, having breakfast or lunch or meeting them in person at their business location. People love the feeling that the one making them a loan or helping with their investment truly cares about them as well. – Elijah McCoy, McCoy Brokerage Service, Inc.
2. Find Out Exactly What Customers Want
You need to find out exactly what they want. Is it more support? Faster service? Educational content? To play in the world of personalization, you must have a data infrastructure that gives you the scoop on crucial member needs. Then, you can serve them solutions that meet them where they’re at right now—and for the next generation of clients who are online. It’s essential to make the information accessible, concise, authentic and interactive. – Crissi Cole, Penny Finance
3. Segment The Market And Do Targeted Outreach
The digital experience is how today’s consumers connect, communicate and utilize the offerings of their financial institutions. Personalization strengthens consumer engagement and outcomes and can be accomplished through consumer segmentation, targeted outreach bespoke products and personalized communications. – Greg Bassuk, AXS Investments
4. Leverage Data Analytics
Leverage data analytics with AI capabilities to help generate personalized messaging, solutions and client service solutions. The idea is that today, there are ways to grab data and use AI to help you understand client behavior, desires, and preferences. AI has created an opportunity that was not there before, thus making it possible to personalize digital experiences. – John Abusaid, Halbert Hargrove
5. Utilize Human-Centered Design And Design Thinking
Leverage HCD (human-centered design) principles as well as design thinking to have a deep understanding of customer persona. Techniques such as empathy mapping or user journey mapping can be used to gather customer intent as well as identify pain points at digital interaction points. Combine these insights with customer-specific data and the usage of AI to design hyper-personalized digital experiences. – Sachith Sebastian, BeyondTeq Ventures
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6. Stay Relevant
It’s important to remain relevant. That may sound obvious but it’s not easy. There are many cross-channel signals, and by leveraging AI, institutions can incorporate factors like location, time and recent activities to provide more relevant information or product recommendations. Contextual relevance allows banks to anticipate customer needs and address them proactively, not reactively—or, worse, misaligned to the need. – Richard Winston, Slalom
7. Adapt To Customer’s Past Interactions
Try designing user journeys that adapt based on a customer’s past interactions and preferences. This way, the navigation feels more intuitive and relevant. For example, if a customer frequently checks their investments, the system could highlight relevant investment tools and updates right on their dashboard, making their experience smoother and more tailored to their needs. – Nick Chandi, Forwardly
8. Embed Solutions Delivering Personalized Insights
Embed solutions that deliver personalized insights and action steps that empower customers. Interactive tools like credit score simulators or identity risk scores are inherently personalized, as they’re based on a consumer’s PII (personally identifiable information). Consumers learn how their decisions impact their credit health and identity safety, adding a level of gamification to the digital experience that keeps them coming back. – Lindsey Downing, TransUnion
9. Adopt A One-Customer Approach
Financial institutions can adopt a one-customer approach by implementing experiential communication to engage customers. This can be done by deploying interactive self-service platforms and feedback, as well as sharing real-time information, alerts and social celebration notifications using advanced technology. – Oluwatoyin Aralepo, Mastercard Foundation
10. Personalize The Service
Don’t just personalize the message—personalize the service. Start with data integrity in your CRM and systems. Then, keep notes to personalize future messages timed with the customer’s needs and journey. Think beyond the birthday card. Help them solve pain points, anticipate their needs by sending tools they will need or follow up on something you discussed together. – Leo Anzoleaga, Leo Anzoleaga Group at NEO Home Loans
11. Utilize AI For Customer Insights
Leverage data analytics and artificial intelligence to create tailored products and services. Financial institutions can gain insights into individual customer needs and preferences by analyzing customer data, including transaction history, preferences and behavior patterns. – Bob Chitrathorn, Wealth Planning By Bob Chitrathorn of Simplified Wealth Management
12. Use Data Mining
Financial institutions can use data mining on consumer spending patterns, website clicks and demographics to enhance the digital experience. This includes simple improvements like website personalization based on age—for example, larger print for elderly clients—and targeted offers from retailers whose products fit the consumer. – Zach Brody, Lumiere Financial
13. Offer Customizable Tools
Financial institutions can incorporate personalization by offering customizable tools. For example, you can utilize software to enable traders and investors to tailor their strategies and risk levels to their preferences, ensuring a personalized and automated trading experience. – David Materazzi, Galileo FX
14. Pair Data Analytics With AI
To personalize digital experiences, financial institutions can use advanced data analytics and AI to create tailored recommendations and communications. By analyzing transaction history, browsing behavior and demographics, you can gain insights into preferences, enabling customized offers and relevant advice. Consistent, frictionless, humanistic engagements are critical, as is a 360° customer view across the enterprise. – Monica Hovsepian, OpenText
15. Build Customer-Centric Products
The digital world opens a new world for financial institutions to take advantage of in building customer-centric products. This could be done by segmenting clients and analyzing buyer trends and habits, then using this information to focus and direct products to specific customers. – Richard Okon, St Nicholas Hospital, CEO AcquireEdge Partners LLC
16. Show Relevant Content First
A cost-effective way to create a personalized user experience is by showing relevant content, like the name and contact details of their “relationship manager” when they log in. AI and data are powerful but costly—start with simple, impactful steps. – David T. Nudelman, Scandinavian Capital Markets
17. Consider Using Salesforce And CRM
Use Salesforce and CRM to incorporate personalization into the customer’s digital experience, and leverage data analytics to tailor services and recommendations. If it’s the client’s birthday or a holiday, reach out. Financial institutions can use data analytics and AI to offer personalized product suggestions and tailored advice, boosting user engagement and satisfaction. – Joseph Lustberg, Upwise Capital
18. Embed AI Into Customer Onboarding
One way to incorporate personalization is to embed AI into the customer onboarding process. AI will create a process that is more manageable and reactive rather than respondent. Its ability to analyze large datasets enables it to understand customer behaviors, characteristics, individual needs and preferences, making it possible to offer a personalized service—starting with onboarding as the initial step. – Tomer Guriel, ezbob Ltd.
19. Use Dynamic Personalization Engines For Real-Time Adjustments
Use dynamic personalization engines. These systems adjust in real-time based on customer behavior and context, such as recent transactions or browsing history, to offer tailored advice and recommendations. This real-time adaptability ensures that interactions remain relevant and responsive, improving customer engagement and satisfaction. – Neil Anders, Trusted Rate, Inc.
20. Implement Interactive Financial Dashboards
Financial institutions can enhance personalization by implementing interactive financial dashboards that allow customers to set and track their own financial goals. These dashboards can provide tailored insights and recommendations based on individual financial behaviors and preferences, creating a more engaging and customized digital experience. – Ash Shetty, CFA, PineBridge Investments
The information provided here is not investment, tax, or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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