Skip to content
CCG Insights

Research Snapshot

  • Research Snapshot

Raising the Bar on Personalization

Raising the Bar on Personalization

Raising the Bar on Personalization

July 28, 2021

By: Kate Drew

Banks today aren’t doing a good job understanding their customers’ individual needs, according to survey data from Comviva. The 2020 report, which polled consumers across continents, asked specifically whether or not respondents felt their bank understood their needs personally as well as whether or not they believe it’s important that their bank know them well in order to deliver personalization. While 78% of respondents agreed that it’s important for a bank to know them well, just 34% said they felt their bank understood their specific needs. This suggests there is a gap between what consumers are looking for and how well they think they’re being served.

Personalization in a digital world is a tricky animal because it involves not just knowing your customers well from a day-to-day standpoint — say, the way a community bank might — but also gathering the right data on them and ensuring it is actionable. This is the kind of firepower that enables a bank to begin to do personalization at scale. That might sound like an oxymoron, but it’s not. Well-built data infrastructure enables you to capture information about your customers on an ongoing basis — their likes, dislikes, where they shop, when they shop — and turn that information into actions. Often, this conversation slips quickly into personal financial management (PFM), or how to help customers better budget and plan based on trends in their spending. This is a worthwhile discussion, but once you’ve got your data in order, there are many more things you can do. For example, if my bank can see that I’ve been renting a car every other week for the last few months, it might show me what the economics of buying a car might look like and offer me an auto loan in the process. At that point, my bank is helping me to optimize my financial life with insights and options.

Consumers’ expectations for personalization are only going to continue to advance, especially as companies like Amazon are now generally further ahead of our needs than we are. It makes sense that people will be looking for that kind of guidance and support from their financial institutions, as well. Getting there, though, from a bank’s standpoint requires aggregating data from disparate systems and making it useful; that’s no easy task. Today, there are companies like MX and Plaid working to help banks overcome this challenge. These fintechs make data their job, and enlisting a partner may not be a bad idea, particularly for those that don’t have the development talent in-house. Regardless of how you approach this area, however, it’s important to remember to have a strategy first. A good data strategy is critical to organizing systems and resources around meaningful goals and outcomes for customers. Without this piece, you’ll only be throwing things at the wall.


Subscribe to CCG Insights

You Might Like These, Too

Banking-as-a-Service: Navigating a New Frontier – Part I & II

Big Banks Line Up Against Smaller Rivals in War for Faster Payments

Big Banks Line Up Against Smaller Rivals in War for Faster Payments

What Does Real-time Really Mean?

What Does Real-time Really Mean?

Where Banks Fell Short on Digital Post Covid

Where Banks Fell Short on Digital Post Covid

Leaders in Bank Consulting

About CCG Catalyst
Latest Insights
CCG

PHOENIX • NEW YORK • LONDON • SINGAPORE

Phone: +1-480-744-2240  • Contact Us

© 2023 CCG CATALYST CONSULTING. Privacy Policy & Terms of Service.
Request a Call Back
Linkedin Twitter
Subscribe
to our Insights
Subscribe
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
BANK
FINTECH
FUSION
  • About
  • Services
  • Insights
  • Fintech
  • Research
  • Team
  • Contact
  • Press
  • Careers
  • Events
  • RFI / RFP
  • Terms
  • Privacy
Linkedin Twitter Search
Subscribe for Insights

CCG INSIGHTS FOR BANKS, FINTECHS, AND CREDIT UNIONS

The Fed, Real-Time Payments, Alexa and Apple P2P, Part of Payment Revolution
  • Weekly digest of what's new
  • New research snapshots
  • Exclusive access to banking and fintech research
  • Industry news
  • Invitations to webinars and webcasts