Page 38 - Banking Finance September 2018

ARTICLE

Traditional banking institutions, as well as fintech companies financial institutions personalized services are: location
and neobanks are now looking at incorporating artificial intelligence and mobile application analytics. These can be
intelligence and advanced analytics to offer innovative used to predict what customers are likely to buy next, and
digital services. These services interact with customers, listen when. Banks can then strategically design and enrich user
to their questions and offer real-time personalized advice, experience with contextualized, timely and value-added
taking basic customer services to scale. offers.

Personalized services for maximum For a seamless customer experience
reach In the end, what millennials want is a customer journey that

To battle against alternative payment providers, banks need is as seamless as possible. For instance, for a customer who
to identify gaps in existing payment platforms and has recently posted about his upcoming foreign trip on social
understand the importance of innovations in this space. They media, the bank should not only be able to help him liquidate
should leverage their rich data reserves (further enhanced his FD, but also offer a forex card with low transaction costs.
by location & search data from mobile) to reach beyond A mortgage advisory app can be connected with social media
payments transactions to comprehensively manage to offer highly relevant advice to customers. Banking of the
customers' digital wallets. future would be seamlessly embodied within our lifestyles,
increasingly consumed through mobile applications and
They can extend their value proposition with the help of would be deeply integrated with the Internet of Things.
contextualized, value-added services: such as location
intelligence, optimized loyalty awards and special offers, Technology can never win without
digital identity management, payment advisory services,
and even crypto currency integration. Banks should use their human connection
rich data reserves to go beyond payments transactions into As banks transform their business strategies to cater to the
managing entire digital wallets for their customers. millennial generation, they must not lose sight of the fact
that while this demographic wants more automated
Personalization is perhaps the key to courting and retaining functionality, they still expect human connection whenever
digital customers. The optimum trade-off between privacy they need it. The challenge therefore, lies in being able to
and personalization changes every day, and institutions need balance the two. It is down to technology to seek this human
to continuously balance these competing imperatives to connection to be able to digitally humanize every
remain relevant. Two of the technologies that can provide interaction.

38 | 2018 | SEPTEMBER | BANKING FINANCE