While it may not yet be possible for fintech enterprises to offer consumers 100 per cent personalized banking and investing experiences powered by cognitive technologies, it has of late moved from the wish list to the realm of the possible.
The plain reality is that customers have come to expect certain things. A personalized, tailored-specifically-to-them experience, with customized recommendations thrown in to boot, is one of the biggies. The one-size-fits-all age is past. While personalization used to be a differentiator, it has become a strategic imperative. The numbers are loud and clear:
- Almost 80 per cent of consumers said they only engage with offers that have been personalized and reflect previous interactions they have had with the brand or product (Source)
- By 2020, over half of consumers expect that companies will anticipate their needs and wants, and will make relevant purchase suggestions (Source)
- Almost 80 per cent of internet users look for personally relevant content from brands before making a purchase (Source)
- Fifty-seven per cent of consumers are fine with provide personal info on a website provided it is for their future benefit and being used responsibly (Source)
Perhaps it’s down to the Netflixes and Amazons of the world, which “follow” customers from device to device, no matter where they are in the world. People are now accustomed to being catered to (i.e., “You might also like this”), and wonder, not unreasonably, why their bank can’t give them the undivided attention the Netflixes and Amazons do.
The financial services industry is deep into a profound change cycle. Take the emergence of new tech like cloud and blockchain and AI and set it down beside an emerging Millennial cohort demanding a slick, personalized, even “fun” financial experience. What you’re left with is an industry that is doing what it must: reinventing itself through the experiences it offers consumers. Fintech cannot and must not fail in this, for when it comes to audience and market share, the spoils go to the victor; consumers will handsomely reward companies that personalize with that most elusive and prized commodity: loyalty.
Unfortunately, fintech customers aren’t all that loyal anymore. Not right out of the box anyway. In most cases, people might not even visit their bank branch that often. The face-to-face connections that used to define the banking experience are fading. Yet people still want connection, and the feeling that their banking or investing experience is a personal one.
The IBM white paper “FinTech innovation” looks at how innovation and personalization are transforming fintech and how people use financial services. Among the areas explored in this timely publication:
- The use of gaming mechanisms to better engage customers
- Goal-based investing and the making of a more active and engaged investor through such technology as scenario analysis and risk-factor simulations
- “Robo-advising” and the sustainable innovation of financial advice
- Ways to change wealth management behavior
Download this insightful white paper on fintech to investigate how goal-based investing, robo-advising, and gamification are interacting to transform the experience of investing in the cognitive era.