Connecting to LinkedIn...

W1siziisijiwmtuvmdqvmtuvmdgvntqvmzgvnzi1l01ptlrbu0hfqkxpr19vtljftkrfukvex0lnqudfx3jlc2l6zwrfyw5kx3jlbmrlcmvklmpwzyjdlfsiccisinrodw1iiiwimtkymhgxmjuwiyjdxq

Blog

Big Data Can Help Banks Build Trust with Constomers

5/01/2015 by Sharon Shahzad

W1siziisijiwmtuvmdevmduvmtcvndgvntmvodezl2jhbmtzxze3ndg0odzjlmpwzyjdlfsiccisinrodw1iiiwinjawedqwmfx1mdazzsjdxq

Beyond revenue generation, cost reduction and risk management opportunities, big data provides banking organizations the opportunity to build trust with consumers by enabling better financial recommendations based on personalized needs. Taking advantage of this opportunity will increase loyalty at a time when competition is increasing.

The rapid transition to digital and mobile banking has fostered a mindset that borders on technological utopianism among banks – at least when it comes to what many presume to be the future of customer service and sales.

Listening to the commentary on this subject, one can only think that many of the traditional tools are dead – whether you’re talking about branch banking, the helpful representative, or the free cup of coffee. After all, according to FDIC data, the number of bank branches has fallen to its lowest level since 2005 and their prominence as a customer sales and service tool will continue to be reduced as online banking becomes easier and more widespread.

But in accepting the current wisdom, one should not also assume that somehow, magically, customers will no longer need help with their personal finances, or that they will in every case pick and choose products and services themselves, with no personal touch needed.

Nothing could be further from the truth.

Digital Banking Changes the Rules of Engagement

Financial services are an inherently complex arena. The critical point to keep in mind is that the transition to online banking does not eliminate the customer’s desire for benefits such as better service or financial guidance. Rather, it changes how these benefits will be delivered. The challenge for banking, in the face of rapid technological innovation, is to find new ways to continue providing these benefits – in part so customers and members don’t defect to a competitor, but also because smart, personalized guidance is one of the best ways to sell more products and services. Why? Because focusing on someone’s individual needs builds trust.“The consumer wants suggestions based on their personal financial situation, yet banks often pursue aggressive selling instead.”

The foundation for building this trust comes in the form of Big Data (capitalized here for the almost unquestionable reverence some have for data to solve their problems). The increasing ease of access to, and growing proliferation of, data no doubt provides insights into customer behavior, yet the mere existence of such information is no salve. For, while it seems almost banal to say, it never stops being true: Data alone is not the answer. Using it effectively to create a valuable experience from the customer’s perspective requires careful consideration about what the client and the banking organization need and want. Unfortunately, financial institutions and consumers are not always in alignment on the use of data. For example:

This article has been extracted from http://thefinancialbrand.com, please click on this link to read the article in full http://thefinancialbrand.com/47900/big-data-banking-trust-experience/

Montash is a multi-award winning global technology recruitment business. Specialising in permanent and contract positions across mid-senior appointments across a wide range of industry sectors and IT functions, including:

ERP, BI & Data, Information Security, IT Architecture & Strategy, Energy Technology, Demand IT and Business Engagement, Digital and E-commerce, Leadership Talent, Infrastructure and Service Delivery, Project and Programme Delivery.

Montash is headquartered in Old Street, London, in the heart of the technology hub. Montash has completed assignments in over 30 countries and has appointed technical professionals from board level to senior and mid management in permanent and contract roles.

comments powered by Disqus

Social Stream

Latest News

W1siziisijiwmtcvmdyvmtkvmtavndkvmtavntuvc2h1dhrlcnn0b2nrxzqymzk2mjg2ni5qcgcixsxbinailcj0ahvtyiisijm4mhgxmdajil1d

Long Term Transition, Not Long Term Tradition...

2017-06-20 09:00:00 +0100

It seems odd that while 88% of businesses are undergoing some kind of digital transformation[1], only 25%[2] of them have a clear understanding of their digital transformation journey. So what's driving so many businesses to pursue digital with such recklessness? Broadly speaking, the reason is simply the unprecedented rate of change in digital solutions and services. As we ride the digital tidal wave, consumers and employees change their expectations, ...

W1siziisijiwmtcvmdyvmtmvmtavmjqvmjuvodcxl3nodxr0zxjzdg9ja181njewnja3mzmuanbnil0swyjwiiwidgh1bwiilcizodb4mtawiyjdxq

How Great Leaders Cultivate Great Teams

2017-06-13 12:00:00 +0100

There's a difference between being a boss and being a leader. Leaders know how to inspire the best from their teams to achieve industry-leading results. For our latest blog, we spoke to our Managing Director, Roy Dungworth, to discover how businesses can create a culture that inspires great people to do great things together. Success in business doesn't begin and end with great leadership. Great leaders inspire their teams to want to do more and be bett...