Customers want hyper-individualized financial services. They're even willing to share personal data and pay more as a tradeoff.
According to research findings released today by
53% of customers say they would like their financial institution (FI) to proactively send them reminders on upcoming major payments
49% of customers want their FI to anticipate products and services they might need or be interested in
47% of customers want their FI to connect the dots between their income, expenses and savings providing proactive guidance to help them reach their financial goals
46% would like their FI to act as a conscientious advisor (voice of reason) on major spending decisions
39% of customers want their FI to intervene and prevent purchases to help them stay on budget and reach their financial goals
'Customer needs are changing, and so are the ways in which financial institutions need to interact with them,' said
'Advancements in artificial intelligence, machine learning and data intelligence are giving banks vast capabilities to deliver what customers want - hyper-individualized, relevant and timely financial guidance to achieve their life ambitions.'
To meet these customer expectations, accurate, real-time data must be at the core of every customer interaction. Better data - and the ability to act on its insights through AI - enables FIs to anticipate customer needs, provide personalized financial counsel, improve data protection, automate manual transactions, and power proactive alerts.
'Futurists are the most important customer segment for financial institutions to understand as they pose a substantial opportunity for growth and customer retention,' said
To explore how AI can enable FIs to attract and retain customers in a digital world,
Key study findings include:
1) The top five reasons customers leave their financial institution center around price, access, and trust (ranked in priority order).
High fees
Poor customer service
Data breach
Unattractive savings and loan interest rates
Competitive offers
2) Trust is most important to customers.
66% of customers tell banks 'be honest with me' - if you make a mistake, be honest with me about it, and correct it.
59% say 'deliver on your promises' - if you promise to deliver a payment in two days, make sure I can access the funds in two days. If you promise to protect my data, don't fail.
3) Gen X and Millennials are willing to pay more to receive personalized recommendations to improve their financial well-being.
35% of survey respondents are willing to pay for and share personal data for personalized proactive services
These 'Futurists' tend to be younger (majority are Gen X and Millennials in the 35-44 age group), have higher incomes, have many banking relationships, are extremely comfortable using technology, and prefer using digital products and services
66% of Futurists agree personalized proactive services are an important feature for their primary bank to offer
4) Customers are willing to share personal data in exchange for personalized proactive services.
61% of consumers are motivated to let go of their reservations around privacy and security in exchange for managing their individual spending budget and getting online individual advice to save money. For example, customers said they would:
41% share online retail purchases
37% share geo location details
36% share airline programs information
36% share credit card information
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