THE pandemic has opened the door for new digital players as consumers experiment with new financial brands and methods of purchasing products.
In our recent survey of leaders and marketers in the financial services and insurance industries, 89% of senior executives agreed that customers have been rewired to be digital-first, and 80% said they have observed changes to customer journeys. An overwhelming majority (86%) expect the pace of change to persist for the foreseeable future.
Bank Negara Malaysia (BNM) agrees that to drive fintech innovation, financial inclusion while also ensuring the country remains competitive with the rest of Southeast Asia, financial service institutions need to go digital. They are driving this with the appointment of Malaysia’s first five digital bank licenses.
One thing that innovative financial services brands have in common is a laser focus on the digital customer experience.
In particular, they’re offering highly personalised, ultra-convenient experiences that are increasingly popular among consumers. As a result, larger banks and insurance companies are now under pressure to deliver similarly personalised experiences on a vast scale.
To better understand how financial services providers can succeed in today’s fast-changing digital-first environment, Adobe partnered with Econsultancy to produce the ‘2022 Digital Trends — Financial Services in Focus’ report.
We focused on what industry leaders who are now “significantly outperforming their sector” or “exceeding their customers’ expectations” are doing differently from everybody else.
Personalisation is hard, but personalisation at scale is harder
When we surveyed marketers and technologists from financial services companies that had significantly outperformed their peers, 53% said their organisations prioritised meaningful digital interactions that improved customers’ financial health.
Only 12% of practitioners surveyed agreed that their company’s digital experience is ahead of customer expectations, with a substantial majority saying they are merely “keeping up” with customer expectations (58%).
However, improving personalised experiences may be less challenging than you think. Our findings suggest three key ways financial services companies can position themselves to achieve personalisation at scale:
- Take command of your customer data.
- Unify and activate your data with the right technology.
- Improve cross-functional collaboration.
Strategy #1: Take command of your customer data
To deliver meaningful experiences to your customers, you must first understand them better, which requires collecting and stitching together all relevant data across sources and journey stages tied to segments or individual profiles.
It’s a daunting task to do this for one customer, let alone millions, so it’s no surprise that the industry’s top area for investment is to improve insights and analytics capabilities.
Yet the industry faces significant obstacles to gathering the data it needs. For example, the vast quantities of data financial institutions have collected directly from their customers is distributed and disconnected across multiple systems.
In fact, some financial institutions may not have a clear picture of where all their customer data is located at any given time. And if they do have a comprehensive map of their customer data, they might not be using it to unlock customer insights and deliver great customer experiences.
For example, our research shows that financial services executives are more confident gathering first-party data (63% agree that they are “effective”) or preparing for a post-third-party cookie environment (51%).
Strategy #2: Unify and activate your customer data in real time
Personalisation at scale requires a combination of critical elements that includes the ability to produce content across the enterprise to keep pace with the demands of personalisation and the ability to deliver seamless journeys that are relevant and consistent across touchpoints.
The role that technology plays is to ensure that three pillars must be integrated to build, deliver, and optimise real-time, cross-channel journeys.
Making this happen requires a tech stack that supports consistent data collection from all your channels, unified customer profiles and journey maps that are continually updated, and high-volume content creation and management.
Financial services firms are increasingly adopting these solutions. In addition to data and insights (65%) and enterprise data architecture (57%), executives also named customer journey (50%) and content management technology (47%) as top technology priorities.
Plus, a growing number of executives and practitioners alike see a role for artificial intelligence (AI) and machine learning in their customer experience tech stack.
However, some senior financial services executives may have unrealistic expectations when it comes to their existing technological abilities.
When we asked them if their organisations already have the right tools to support personalisation, 31% said yes, but only 15% of practitioners agreed. This is why it’s so important for leadership teams to validate their assumptions and meet their business objectives.
Strategy #3: Make it easier to collaborate
One of the most substantial challenges associated with personalising the customer experience is that each part of a customer’s journey may be managed by a different functional area.
For example, marketing owns the website content, product or technology owns the mobile app, customer service owns digital chat, and so on. For a cohesive and streamlined customer experience, each of these elements must be personalised and stitched together.
All of this requires collaboration across departments, which typically involves managing change effectively and fostering an open and transparent organisational culture as well as choosing and integrating the right technologies.
Not surprisingly, our research shows that marketing practitioners at financial services companies who describe their digital experience as “ahead of customer expectations” rate their organisations highly across the dimensions of collaboration, agility, innovation, and diversity.
We also found that most financial services companies still have room to work even better together. When we asked senior executives if disparate marketing and experience teams could collaborate successfully, 44% said yes.
More said they were working on it (48%) or didn’t have it on their radar (8%). Similarly, 35% of executives said they had consistently reduced organisational silos, while 56% said they are working on it, and 9% hadn’t yet begun.
Pulling it all together
Most financial services providers have all the customer data they need to start building personalised experiences at scale.
But on the whole, these organisations also need to ensure they have the technology to connect their data into meaningful customer profiles, the ability to integrate those profiles with systems that power customer touchpoints, and better collaboration between all the teams that own a piece of the customer experience. – June 19, 2022
Christopher Young is the director of industry strategy and financial services at Adobe.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
