Look for the consumer story in transaction data
FIs already know the products customers hold with them and transactions made within the institution. But that data only provides a sliver of the overall view of a customer’s full financial profile.
FIs must analyze the entirety of customer’s transactions: online bill payments, ACH payments, incoming fund transfers, and debit/credit card payments to gather a more complete view. In aggregate, these transactions paint a more complete picture of the consumer as a financial entity—not only with their primary institution but with other institutions as well, including retailers and service providers that help manage their lives.
Collectively, a customer’s transactions weave a unique financial narrative—online payments for household bills; transfers to other institutions for loan payments and investments; debit and credit card swipes for food, dining, entertainment, and travel; and a host of other life necessities.
When analyzed properly, transaction data identifies a consumer’s life priorities, depicts patterns in spending behavior, and predicts current life stages, such as having children, buying a house, sending kids to college, or enjoying retirement.
This is what customers want—expect—their FI to know. They expect their FIs to understand their motivations, current financial needs, and, most importantly, financial concerns.
The same Financial Brand article stated that an institution’s brand value can be measured based on the quality of the customer experience they provide. The following data points were gathered from their third-party research.
63% of consumers are highly annoyed with generic advertising .
80% of consumers say they are more likely to do business with a company if it offers personalized experiences
91% of consumers would switch brands if a different brand with the same products and services was more authentic and purpose-driven
These stats shouldn’t be surprising. Consumers experience personalized attention every day from their numerous digital interactions— Amazon, Netflix, Starbucks, and Google searches are just a few examples. Consumers expect their FI to use the data it has available to help them to secure the right products, create wealth, reach their financial goals, and master their finances.