Page 28 - Banking Finance January 2024

ARTICLE

product recommendations. Assess the success of cross- Customers actively participating in the personalization
selling and upselling efforts by tracking the adoption process, providing feedback, and embracing new
rates of recommended products and services. Measure technologies contribute to a dynamic and mutually
the impact on customer lifetime value and overall beneficial personalized banking experience. The role played
revenue. by customers is pivotal in the success and evolution of
personalized banking. In a personalized banking model,
6. Data Accuracy and Security: customer engagement, feedback, and collaboration are
Evaluate the accuracy of customer data used to essential components. Here are several key aspects of the
personalize services. Inaccurate or outdated data can customer's role in personalized banking:
lead to ineffective personalization. Additionally, ensure 1. Data Sharing:
that personalized banking initiatives adhere to stringent Personalized banking relies heavily on customer data.
data security and privacy standards. Regularly audit and Customers play a critical role by willingly sharing
assess data accuracy and security measures. relevant information about their financial habits,
7. Benchmark Against Industry Standards: preferences, and goals. The more accurate and
Compare your personalized banking initiatives against comprehensive the data, the better banks can tailor
industry benchmarks and best practices. This provides their services to meet individual needs.
context for understanding how well your bank is
performing in comparison to competitors. Industry 2. Providing Feedback:
benchmarks may include customer satisfaction scores, Customer feedback is a valuable resource for banks
adoption rates of personalized services, and customer aiming to enhance their personalized services.
retention benchmarks. Customers can provide insights into the effectiveness of
8. Monitor Technological Infrastructure: personalized features, the relevance of
The success of personalized banking is closely tied to the recommendations, and the overall satisfaction with the
underlying technological infrastructure. Ensure that your personalized banking experience. This feedback loop is
bank's technology can support personalized features, crucial for continuous improvement.
data analytics, and AI-driven recommendations.
Monitor the performance of these technologies and 3. Setting Preferences:
invest in updates or improvements as needed. Customers have diverse financial goals and preferences.
Personalized banking allows customers to set their
9. Regularly Review and Adjust Benchmarks: preferences, whether it's related to the type of
The banking landscape and customer expectations notifications they receive, the level of risk they are
evolve over time. Regularly review and adjust your comfortable with, or the specific financial products they
benchmarks to stay aligned with industry trends and are interested in. Banks can use this information to
changing customer preferences. Flexibility in tailor their offerings accordingly.
benchmarking allows your bank to adapt to new
challenges and opportunities. 4. Engagement with Personalized Features:
The success of personalized banking is contingent on
10.Encourage Continuous Improvement: how actively customers engage with personalized
Foster a culture of continuous improvement within your features. Whether it's using budgeting tools, receiving
organization. Use benchmarking results as a basis for customized product recommendations, or utilizing
refining personalized banking strategies. Encourage personalized financial advice, customer engagement is
teams to experiment with new approaches, a key performance indicator for personalized banking
technologies, and service offerings based on benchmark initiatives.
insights.
5. Adopting New Technologies:
The success of personalized banking is a collaborative effort Customers play a role in the adoption of new
between financial institutions and their customers. technologies that enable personalized banking. Mobile

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