Customer expectations of their banking platform are evolving rapidly, especially when it comes to personal finances. As fintech firms continue to innovate, one trend is becoming very apparent: hyper-personalization.
This tailored approach to banking services leverages advanced technologies like AI and data analytics to deliver customized experiences that meet the unique needs of individual customers. But what exactly is hyper-personalization, and why is it the next big thing in banking?
Hyper-personalization goes beyond traditional segmentation techniques, diving deep into individual customer preferences, behaviors, and needs. It's about delivering the right message or service to the right person at the right time, creating meaningful interactions that foster trust and loyalty. Remember – everything is relative. And most importantly – contextual.
At the heart of hyper-personalization lies AI and contextual knowledge. By leveraging AI algorithms, banks can analyze diverse data sources to understand each customer's unique context, preferences, and behaviors. This deep understanding enables banks to anticipate needs, tailor offerings, and deliver seamless experiences across digital channels. For more information about contextual banking, read our article.
The impact of hyper-personalization on key performance indicators (KPIs) cannot be overstated. According to recent studies, banks that embrace hyper-personalization experience:
Banking is competitive, and so are user’s demands for personal approach. Everyone wants to be heard and financial sectors have always been notoriously “cold”. If users don’t feel they can trust their bank, it can have longterm consequences.
Of course, there are always those who understand the need for constant innovation and adaptable strategy, following the needs of their clients and their life journeys through the financial sector.
There is much that can be done “on the go”, but it is important to understand that all innovations need to stand on key pillars of hyper-personalization. What you can do?
Banking is becoming not only more digital, but also customer-centric, and hyper-personalization stands out as the key element of this transition. The banks that understand and implement enriched data and their smart use within their banking platforms will not only stay ahead in the competition but will also win the lasting trust and loyalty of their customers. Personalization is no longer an option; it's the cornerstone of a successful and thriving banking future.
About author
Michal Maliarov
Senior insider