The importance of unifying customer data and intelligence throughout a financial institution cannot be understated – a recent report from McKinsey indicated organizations that harness the full power of their data are 23 times more likely to acquire customers and six times more likely to retain customers. These data-driven organizations are also 19 times more likely to be profitable.
Breaking Down Data Siloes
Consolidating account holder information into one source can appear to create a challenge. However, this can be achieved through a few navigable steps. The first is identifying how data is currently collected and where it can be found, followed by team outreach to determine the existing data management system in use that is most effective. The chosen data platform should be established as a centralized system that will act as a single source of truth for customer information.
The ideal data platform should be able to unify all existing data, offer actionable insights and enable information to be easily updated. Banks that make this shift are better poised to use data to understand customer needs, develop long-term growth strategies and receive accurate reports for critical business functions. The final step to breaking down siloes is encouraging the institution’s teams to leverage the data for cross-functional communication and collaboration.
Delivering the Hyper-Personalized Experiences Customers Expect
Personalized experiences are a must-have facet of the user journey for FIs to retain and gain account holders. Research from McKinsey indicates that 71 percent of consumers expect personalized interactions from companies and those that excel at delivering this form of customer intimacy tend to generate faster rates of revenue growth. Fintechs looking to garner customers from FIs have progressed to hyper-personalization tactics such as AI to gauge banking customer needs and suggest products and services.
FIs that ensure their team has access to a single source for customer information can deliver more tailored service for each account holder Bank staff that interacts with account holders will be able to leverage the database to quickly recognize who the customer is, the past interactions they’ve had with the bank, as well as the products and/or services they currently use. This creates opportunities for more curated interactions, improves customer satisfaction and bolsters stronger loyalty.
Elevating Operational Efficiency and Risk Mitigation
Access to comprehensive financial views, including customer dashboards, books of business and operational information, can help the bank better identify and manage potential risks, as well as the ability to visualize every activity happening across the organization. Consolidated data views empower banks to mitigate credit risks by making more informed decisions about lending and other financial services. This can help reduce the risk of loan defaults and ultimately improve the institution’s overall profitability. FIs that simplify their approach to data across the enterprise can also eliminate redundant systems that lead to inefficiencies, confusion, and unnecessary costs.
This data structure also benefits customer accessibility. Banks that can establish a central location where account holders can see all their financial details within the bank and take action to contact a personal or business banker are better positioned to provide a strong customer experience. Surveys show that an exceptional user experience makes all the difference – 69 percent of customers list poor services as the primary reason for leaving their bank. Banks that create more streamlined systems with greater self-service options can offer account holders the financial autonomy they crave, create frictionless experiences and build greater trust.
Unlocking Growth Opportunities
Unified data throughout the institution empowers advisors to initiate more meaningful financial conversations around each account holder, which in turn fuels customer relationships and the organization’s long-term success. Capturing all customer data in one place positions banking teams to be proactive about cross-selling to increase wallet share. Centralized data across the enterprise equips the institution to provide customized guidance and move account holders toward other products and services that can benefit their financial journey. Banks that can increase business with the accounts already housed within the institution can achieve five times more growth.
FIs that prioritize unifying data across the enterprise gain invaluable potential to maintain a competitive advantage and drive stronger business strategies. Data-driven insights enable banks to create friction-free, intuitive user experiences via hyper-personalized experiences to drive stronger customer connections. Cohesive data also empowers FI leaders to proactively identify opportunities and risks across entire customer and prospect lists to improve long-term growth. Banks that successfully employ the power of unified data will be one step closer to transforming the future of financial management.
David Benskin is the founder and CEO of Wealth Access, Inc., a Nashville-based financial technology company launched in 2011. Under his leadership, Wealth Access empowers financial institutions to unify their account holder data to generate deep insights that power hyper-personalized banking and wealth management experiences.