Banking
The now and next for banking personalisation
Published by Jessica Weisman-Pitts
Posted on October 11, 2024
5 min readLast updated: January 29, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on October 11, 2024
5 min readLast updated: January 29, 2026
Matt Phillips, Head of Banking, UK and Ireland, Diebold Nixdorf
Matt Phillips, Head of Banking, UK and Ireland, Diebold Nixdorf
Matt Phillips, Head of Banking, UK and Ireland, Diebold Nixdorf
Balance is an extremely relevant word in the financial services industry right now. On one hand the push to drive efficiencies and carve out costs from operating models has been dominant on strategic agendas for many organisations. In parallel, the need to be more customer-focused than ever is vital to staying relevant and competitive. With these often-opposing priorities at the forefront of current decision making, what role is personalisation playing on both sides of the equation, and how can personalising services for the future help drive a growth agenda for financial services?
An inflection point for personalisation
In many cases the industry is at a point of inflection – and indeed reflection – when it comes to personalisation. Many financial institutions have been developing and offering increasingly personalised services, which has been shown to increase revenue and drive customer loyalty. Indeed, a recent study showed that 86% of financial institutions viewed personalisation as a clear strategic priority, with further investments in this area planned by 92% of the same group.
Despite this commitment, in some cases the personalisation agenda has been somewhat diluted and steered off track by other priorities; resulting in basic levels of customer satisfaction being missed. With efficiency drives taking priority for many, there is often a lack of depth to truly understanding pain points and the experiences consumers are looking for in today’s current climate.
Going back to basics can often help resolve this as a starting point. Of course, longer term a truly emotional connection needs to go beyond the basics. As well as offering personalised solutions, financial institutions must be socially responsible, provide value-added services and support, and ultimately align with an individual’s values to create an emotional connection for the future.
The physical versus digital debate
There has been much discussion over recent years about where consumer services should be offered, and what the scope of consumer touchpoints should look like. As part of this, considering the role physical services play in the topic of personalisation is critical. For example, is it more important that the staff in your local branch recognise you and can tailor your in-branch service, or that you only get relevant product offerings through your banking app? Most consumers want a blend of the two, highlighting the importance of creating connected experiences.
Balancing people and technology to get the optimised combination of services creates the foundation for achieving overall customer satisfaction and driving revenue opportunities. Going too far down the automation route has in some cases, led to the elimination of personal value. Getting back to creating a value-added exchange of experiences can leapfrog organisations ahead in the competitive landscape.
Inclusive human experiences that create a blend of both physical and digital banking services will enable financial institutions to be bold and take the required steps forward for growth. In addition, baking innovation and the latest technology into the consumer offering will facilitate a ‘routine innovation’ approach and ensure that services are relevant, timely and fit for the current economic climate.
Making data part of the journey
We all know the power of creating data-led customer journeys and the role it plays in effective personalisation of services – but how advanced is the financial services sector in actually implementing such journeys? With an unpredictable economic and political climate, in some cases the focus on capitalising on data, and the insights it brings, have taken a back seat.
However, this is not the case for all organisations with some taking strides ahead in their use of data. Many financial institutions are effectively embracing data to attract new customers as well as maintain loyalty within their existing customer base. By creating a true understanding of consumers through the intelligence of data, there are more opportunities to create a relationship of trust. Consumers want to feel recognised and understood and this deeper level of connection is only achieved by adding additional value on top of basic transactional services offered.
To move forward, the industry needs to embrace data as a non-negotiable and fundamental element of building consumer journeys in the overall customer approach. On top of the wealth of data financial institutions hold on their customers, there may also be a need to invest in external data and take a more proactive approach to utilising social and economic data to create that next level of meaningful and truly personalised customer experiences.
Taking the lead on education
The role of personalisation can also extend beyond simply offering more tailored and relevant services and journeys. Creating and maintaining continued trust and confidence in services goes back to creating that emotional connection.
Financial institutions play a vital role in our economy and how we manage our money. With the economy likely to be more unpredictable in the future, does the industry have a responsibility to play more of an educational role rather than a transactional provider of banking services? Some organisations are spearheading the push for consumer education, and this is likely to pay dividends in an increasingly competitive environment. Not only can offering consumers tailored education and support with financial services help them embrace and utilise your individual services more effectively, it can also provide a platform for advancing financial inclusion as a whole – truly allowing consumer choice and empowerment for those in every society.
In summary, the future of personalisation requires a dual approach. Firstly, financial institutions should take now as the opportunity to go back to basics and reassess whether they have a true understanding of their customer’s needs in today’s current environment. Once this solid foundation has been built, embedding a commitment to personalisation across the consumer journey ecosystem will drive value creation, boost revenue opportunities and customer engagement – ultimately creating more collaborative and two-way customer relationships for the future.
Personalisation in banking refers to tailoring services and products to meet individual customer needs and preferences, enhancing customer satisfaction and loyalty.
A customer journey is the complete experience a customer has with a brand, from initial awareness through engagement and purchase, including all interactions.
Data-driven decision making involves using data analysis and insights to guide business strategies and decisions, improving outcomes and efficiency.
Financial education is the process of learning about financial management, including budgeting, investing, and understanding financial products and services.
Customer loyalty is the tendency of customers to continue buying from a specific brand or business due to positive experiences and satisfaction.
Explore more articles in the Banking category
