One in two UK consumers would be happy to share transaction data with third parties if offered a more personalised service, whilst one in three would be happy to use banking services from technology companies, because of the personalisation they offer.
UK Banks that missed last month’s Open Banking deadline are facing up to the end of their extension period. Next week sees HSBC and Nationwide’s deadline to implement compliant payments functionality.
Until now, established financial services providers have been able to rely on large, mostly static customer bases. But once Open Banking gets into full swing, customers will be able to permit third-party access to their accounts and financial data, allowing tech companies to offer direct financial services, and giving increased visibility to consumers.
Open Banking will change the previously rigid rules of the game. It will make the financial services market more transparent, and put new and established providers on an equal footing. While new players will be looking to poach customers by offering them better deals and ultra-personalized service, traditional providers will have to prove that they are making efficient use of the data they already hold, by communicating in an increasingly personalised way.
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Under Open Banking, financial institutions will have to adopt customer loyalty solutions in order to stay strategically ahead of competition. Only smart and precise communication could create such a relationship between a bank and its clients.
PiniYakuel, CEO of relationship marketing platform Optimove, comments: “Banks and financial services providers will have to focus on giving the best possible value to the customer, to stop them switching to their competitors. Offering highly tailored communications will be key to this. Financial services firms will be looking at their existing data to find out what value means to each person, and adapting marketing strategies in an emotionally-intelligent way to make every customer feel special.
“Consumers are likely to see an increasingly personalised experience, as old and new financial companies move to distinguish their brand with promotions and rewards tailored to each individual, like retailers.”