Banks Don’t Understand Their Customers

by Joseph Walent 0

The recently published collaborative whitepaper by Oracle AND Efma provides another voice to the chorus advising FI’s to raise their level cognizance and use of customer insights afforded them through analytical tools applied to the oceans of data available now.

“Information is the lifeblood of financial institutions,” said the whitepaper. “Banks are in the privileged position of having access to a huge volume of data relating to their customers. How this is used can make a big difference to the customer experience – and ultimately to the profitability of the bank. The right information, analyzed in the right way, can ensure that the bank can provide the right offer at the right time – along with a seamless service at a lower cost. And that has to be good for everyone involved.”

Increasing portability of finances, and the decreasing importance to consumers to designate a “financial home” from among their relationships with various FI makes the understanding of individual customers and prospects more of an imperative than ever before. Active account management thorough automation tools and human intervention in anticipation of inflection points in a consumer’s financial life will need to be a mainstay in the strategy of successful FIs in the coming years.

Overview by Joseph Walent, Associate Director, Customer Interactions Advisory Service at Mercator Advisory Group

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