Post on 21-Mar-2020
THE IMPORTANCE OF PERSONALIZATION
IN FINANCIAL SERVICES
As more companies provide truly personalized digital experiences, the more conspicuous it becomes
when a company does not.
This is true across industries.
Consumers don’t just compare their experiences
from bank to bank, insurance provider to insurance provider, brokerage firm to brokerage firm.
They compare all the experiences they have online.
Communicating with customers and prospects
with 1:1 personalized experiences is no longer
a “nice-to-have” for financial institutions.
It’s essential, as these stats show.
Financial Institutions Recognize the Value of
Personalization
78%of financial institutions
(FIs) increased investment in customer experience
innovation in 2017¹
50%
of all banking providers believe AI will have
a significant impact on their business model³
79%
of FIs consider it “very” or “extremely” important
to deliver guidance to customers in real time⁵
32%of financial services executives
say their organizations are using AI technologies such as predictive
analytics, recommendation engines, and voice recognition and response²
14%more revenue – what FIs
estimate they'd earn if they could successfully o�er customers an
individualized experience4
Consumers Expect Experiences Personalized in Real Time
40%
of consumers say that providing a personalized
service would change their loyalty to their bank⁶
Two in five millennials complain that the o�ers they receive from banks are not personalized⁷
But There is Work to Do
40%of all but the very largest
financial institutions consider themselves “static” (meaning
they o�er no personalization)⁸
50%
of FIs cite “legacy technology” as the main barrier to digital transformation⁹
Top two reasons FIs feel they cannot e�ectively leverage big data to
deliver better experiences:
The financial services industry is not immune to the trend – consumers are expecting personalized experiences across channels. The good news is that FIs are recognizing this trend and making strides to overcome internal
barriers to deliver personalization. But they still have work to do, and Evergage is here to help.
Data is too distributed and in silos
Shortage of data science talent to analyze the data
and communicate insights¹⁰
01 02
74%
of banking providers believe partnering with third parties will be the best way for them to access machine-learning
technologies11
1 Efma, Infosys-Finacle and Digital Banking Report, “Innovation in Retail Banking 2017,” Oct 2017,
https://thefinancialbrand.com/68280/innovation-banking-trends-repot-efma-digital-transformation/
2 Narrative Science and National Business Research Institute, “Outlook on Artificial Intelligence in the Enterprise 2016,” July 2016,
https://narrativescience.com/Resource-Library/PR/62-of-organizations-will-be-using-artificial-intelligence-ai-technologies-by-2018htt
ps://thefinancialbrand.com/63322/artificial-intelligence-ai-banking-big-data-analytics/.
³ Efma, Infosys-Finacle and Digital Banking Report, “Innovation in Retail Banking 2017,” Oct 2017,
https://thefinancialbrand.com/68280/innovation-banking-trends-repot-efma-digital-transformation/
⁴ Oracle, “The Era I Enterprise: Ready for Anything,” April 2016,
http://www.oracle.com/us/industries/oracle-era-ready-anything-2969053.pdf.
⁵ Digital Banking Report, “The Power of Personalization in Banking,” 2016,
https://www.digitalbankingreport.com/dbr/dbr242/.
⁶ Accenture Consulting, “2016 North America Consumer Digital Banking Survey,” 2016,
https://www.accenture.com/t20160609T222453__w__/us-en/_acnmedia/PDF-22/Accenture-2016-North-America-Consumer-Digita
l-Banking-Survey.pdf.
⁷ Je�ry Pilcher, The Financial Brand. “50 Facts Revealing Millennials’ Mindset and Myths About Money,”June 2015.
https://thefinancialbrand.com/52223/50-facts-about-millennials-and-money/
⁸ Digital Banking Report, “The Power of Personalization in Banking,” 2016,
https://www.digitalbankingreport.com/dbr/dbr242/.
⁹ Efma, Infosys-Finacle and Digital Banking Report, “Innovation in Retail Banking 2017,” Oct 2017,
https://thefinancialbrand.com/68280/innovation-banking-trends-repot-efma-digital-transformation/
10 Narrative Science and National Business Research Institute, “Outlook on Artificial Intelligence in the Enterprise 2016,” July 2016,
https://narrativescience.com/Resource-Library/PR/62-of-organizations-will-be-using-artificial-intelligence-ai-technologies-by-2018.
11 Efma, Infosys-Finacle and Digital Banking Report, “Innovation in Retail Banking 2017,” Oct 2017,
https://thefinancialbrand.com/68280/innovation-banking-trends-repot-efma-digital-transformation/