Banking / Finance

It’s time for personalization in financial services

04th Mar `14, 11:29 AM in Banking / Finance

Banking is Far From Personalized As customers have grown accustomed to personalized solutions in other industries, the demand…

BDMS
Guest Contributor
 

Banking is Far From Personalized

As customers have grown accustomed to personalized solutions in other industries, the demand has begun to receive the same attention from their financial services providers. With all the innovation in other sectors, the financial world, still has a long way to catch up.

Traditional mass production techniques and commoditized products may result in getting new customers in the door, but research has shown that a key to retain customers, especially profitable ones, is through personalized solutions that drive loyalty to the brand. Furthermore, high levels of customer satisfaction result in a powerful competitive advantage and less likelihood to stray to rival banks.

In market research conducted by GfK which obtained results from consumers with over $10,000 in deposits, over 40% surveyed said they would be more inclined to continue their relationship with their primary bank if they offered products where the economics of the product could be personalized.

Unfortunately for customers, only a few financial services companies have implemented true personalization for the broad retail segment. Banking products and services are usually categorized by one of two things; a high-degree of personal service with product personalization delivered to a small segment of wealthy individuals or standardized offerings to the broad consumer retail and mass affluent segments.

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