Banking / Finance

Personalization in Banking: From Novelty to Necessity

07th Apr `16, 04:34 PM in Banking / Finance

Consumers are Willing to Partner with banks In research included in the Digital Banking Report conducted by CGI, it…

Guest Contributor

Consumers are Willing to Partner with banks

In research included in the Digital Banking Report conducted by CGI, it was found that consumers want personalized services and they want to be rewarded for their business. The study also found that consumers are willing to switch to non-bank alternatives to find these new services, as well as pay fees for them.

This suggests that there are immediate opportunities for banks and credit unions able to respond to these increasing consumer demands. Leading banking providers must be focused on personalizing their digital offerings to ensure they match or exceed both traditional players and new competitors who are delivering real time contextual engagement.

Consumers expect banks to look and act more like their non-financial partners in how they gather and use their personal and transaction data. They expect their personal financial institution to understand where they stand financially and what may lie ahead. This would represent a ‘GPS’ view of their financial lives as opposed to a ‘rear view mirror’ view of what has already occurred.

Consumers want their financial institution partner to securely manage their finances, understand their goals and preferences, and proactively deliver the right offers and services to help them achieve financial well-being. This personalized engagement will differentiate itself not only from other banks but from fintech start-ups as well.

Interestingly, nearly one in five consumers say they are willing to pay their banking provider to know them better. Unfortunately, as we found in our research, most consumers don’t believe that their primary financial institution knows them very well.

Respondents believe that banks should know their short- and long-term financial goals, so that they can provide support in meeting those goals. However, an average of only 24% of respondents believes that their bank understands any of their current goals. To get to the level of understanding desired, consumers are willing to share insight with their primary financial institution according to the CGI research. This is in stark contrast to the amount of insight most financial institutions are willing to ask, collect, and utilize for the benefit of the consumer.

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