With the growing consumer adoption of mobile devices, social media, and improved user interfaces, banks can differentiate themselves by understanding their customers’ preference for digital communication and their degree of trust in sharing financial information through digital channels.
This was the conclusion of research conducted by TSYS and FICO.
More than 2 billion people are using social media worldwide. The always-connected digital consumer is demanding more self-selection and more personalized management tools, researchers found. Those banks that can segment their customers based on their level of digital engagement will gain a higher level of customer interest and interaction.
Most financial institutions are leveraging “Know Your Customer” techniques. While “KYC” traditionally served as a risk-management tactic and regulatory compliance obligation, it also serves as an approach that allows customers to choose their preferred channel of communication.
The firms’ report suggests, however, that this approach no longer suffices, by itself. A “bring your own persona” approach, according to the report, allows new segments to be identified and categorized by their level of digital engagement and trust in sharing information.
“In the digital age, customers expect banks to understand their preferred communications channels, willingness to share personal data in various scenarios, and ability to transact,” says Bruno Courbage, senior director of Product Management for Customer Management at FICO. “Relying solely on data such as income, age, and geography isn’t enough.”
- Look Before You Leap: Key Considerations for Moving to a Digital-Only Model
- Disruptions Past, Present and Future Raise the Existential Question: “What Are Banks For?”
- Study Links Credit Card Offer to Bank Choice
- What Banks Can Learn From the United Capital Acquisition
- What the Win-Win Partnership Between Apple and Goldman Sachs Means for Payments