By using multiple sources of data and various statistical methods, financial institutions are providing a personalized experience to its customers.
FREMONT, CA: Financial services industry has been generating a large volume of data through the pervasive digitization process. Most of the data being produced by the financial enterprises through the massive digitalization pertains to the customer, including customer demographics, transactions, buying, spending, borrowing, and many others. This mammoth amount of digital customer data generated has the potential to reinvent the entire business functions of the financial services and banking industry if used in the most scientific and meaningful way.
Primarily, with the data, the financial institutions can offer personalized services to their customers in various operations, including customer service, marketing, sales to list a few. Both enterprise data and other data of customers and automating the personalization process using machine learning brings up increased opportunities for enterprises.
Personalized services indeed help financial enterprises to provide enhanced customer services and reduced customer churn and increased rate of retention. All these translate to add brand loyalty and improved customer engagement. The insights gained from running data analytics on the internal customer service processes can help firms to pinpoint the spots that need improvement, and also help them harness the customer lifetime patterns to drive the customers’ lifetime value.
Personalization is one fastest growing data-driven automation process and has already started delivering outstanding results to the early adopters in the industry. Despite the challenges caused by massive data volumes, multiple data sources, quality of data, and regulations related to data, machine learning driven personalization platforms are creating immense opportunities and leading the financial industry to an age where data rules and decides the surefire methods and process for providing personalized services to customers.