It’s becoming abundantly clear that the banking sector has to prioritize personalization to meet and exceed customer expectations. A recent study conducted by J.D. Power indicates that bank customers are increasingly seeking personalized support, especially during economically challenging times.
The survey, involving over 101,000 respondents, revealed some concerning data. While 78% of respondents claimed they would continue using their bank if they received personalized support, only 44% of banks are currently providing it. Moreover, customers expressed dissatisfaction with how their banks support them during financially difficult times, adding to their disenchantment.
Jennifer White, the firm’s senior head of banking intelligence, commented, “Customers are expecting a personalized mix of financial advice, hands-on help with problem resolution, and guidance on how to grow their money.” Unfortunately, banks scored poorly in their capacity to save clients money and time, only further highlighting the importance of personalization in this sector.
However, customer dissatisfaction presents a unique opportunity for banks to pivot and improve their services. Tailwind Business Ventures strongly believes that implementing AI-powered solutions and leveraging data can effectively enhance the banking experience for customers.
AI-powered offerings, like Bank of America’s Erica Assistant or Chase’s Digital Assistant, can provide financial advice and significantly improve customer interactions. At the same time, banks should aggressively gather and analyze data to elevate the customer experience, similar to Bank of America’s usage of its 50 million data points.
There’s also a call to reshape the function of physical branches to cater to specific consumer groups, adding another layer of personalization. Branches can adopt the multicultural approach of M&T Bank or TD Bank’s customizable layout in their flagship New York City location.
Furthermore, banks need to make their consumer-friendly moves more noticeable. For example, cutting overdraft fee exposure is a highly sought-after personalization aspect. To effectively communicate these initiatives, banks can incorporate social media influencers into their marketing campaigns, prioritize omnichannel marketing, and align marketing strategies with business objectives.
At Tailwind Business Ventures, we specialize in digital transformation and personalization, providing businesses with the necessary tools and strategies to adapt to changing consumer needs. As the banking industry grapples with these challenges, we believe that our expertise in customer-centric solutions, data analytics, and AI-driven services can help banks turn the tide and significantly enhance their customer experience.
We look forward to helping more banks transform their customer experiences, using personalization as a powerful tool to retain and grow their customer base.
The future of banking is personalization, and the time to act is now. Book a call with Tailwind Business Ventures to learn how to scale your firm with personalization.