Changing the Customer Experience Through AI and Data
There are certain life events that alter an individual’s financial and personal life. Life-changing events such as marriage, the birth of child, the purchase of a home and starting a new job often correlate with long-term investments that require the individual to divulge information about their financial habits and their financial well-being. This wealth of data tend not to be monetized.
Leveraging that information will better help financial institutions understand their most loyal customers, and by using artificial intelligence to understand and predict trends, be able to better tailor their offerings to create a richer and more enhanced customer experience.
The financial services industry tends to be on the forefront of innovation when it comes to customer experience. They offer an omnichannel experience from the traditional bank to the mobile/online platforms and changed the game with mobile payments. Their ability to retain customers, especially in the digital age is paramount for them to grow their business. Having a great customer experience is a large part of what attracted current customers and what attracts future customers to the specific financial institutions. Creating a dynamic and responsive customer experience is something all financial institutions should strive to do.
While creating the front-end customer experience is important, it is equally as important to talk about the kind of information that is vital to creating the experience. This is where major life events play a role.
Typically, longer-term investments (decisions that are revisited every seven years or so), allow for a better look into the overall customer profile. The information required in one of these decisions is extremely valuable to the lenders/investors. Often they contain an entire customer profile that goes unused outside the realm of the lending.
This information can – and should – be utilized to change how financial institutions market to their customers and create their customer experience. By using AI and machine learning, customer trends and predictive statistics can show an institution how to better cross-sell to their customer. Analyzing larger amounts of the customer profile allow institutions to better sell their base on short-term offerings or at least predict when someone might be interested in another offering.
The data collected can also help financial institutions see how they are performing overall. It will educate them on the types of customers they are attracting, what these customers’ overall financial health looks like and other useful demographic information. This information can help them tailor their business/offerings and allows for the ability to scale up and down resources in areas of need. This will help financial institutions not only plan for the worst, but also helps them digitally transform for the future.
— Varun Ganapathy, Director – Digital Technology Office; Industry Solutions