Personalisation of banking services

Across all industries, organisations are facing the challenge of driving customer loyalty. In today’s economy, consumers are bombarded with a plethora of marketing messages across every channel. It’s hard for brands to stand out. At the same time, consumers are becoming increasingly savvy and are less likely to remain loyal to a particular brand, choosing instead to shop around to find the best deal at the right time.
Some banks opt for financial incentives to attract new customers; however, their focus should really be on how to retain customers – in other words, how to increase the “stickiness” of customers. Indeed, research suggests that acquiring new customers can cost a staggering seven times more than retaining existing customers! One strategy that is set to become increasingly important in 2018 is deeper personalisation of banking services, to take the customer experience to the next level.

So, what does this entail?
One way to personalise banking services is through smart ATMs that pre-empt what a customer wants to do at the machine. For example, intelligent software could ensure that when a customer inserts their card into an ATM, they are greeted with a list of their most common transactions, reducing the need for them to scroll through different options to find what they’re looking for. Smart ATMs could, for example, include pre-set fast withdrawal for the customer who always takes out a set amount of cash for weekend expenses.
Another way to personalise the ATM experience would be allowing customers to set up their dashboard to meet accessibility needs. For example, if a customer has vision difficulties, they could configure their bank settings so that every time they put their card into an ATM, the machine recognises the need for the text to be displayed in a larger font.
Banks could also look at onboarding ATM software that means customers are automatically greeted in their mother tongue. Little touches like this show the customer that the bank is paying attention to customers and their habits and is trying to make their banking experience as smooth as possible.

Personalisation as the core of banking strategy
As banks drive convergence between different channels, personalisation needs to remain at the very core of their strategy. Banks need to be asking themselves what they can do to make the experience as smooth and easy as possible. This might mean enabling cardless ATM withdrawals, whereby a customer can use a mobile banking app to complete a withdrawal without the need for a card or PIN.
Here at Auriga, we’ve taken part in some interesting research research which revealed customers are keen to see more services offered at ATMs – including bill payment, ticket purchases and currency exchange. Banks should aim to understand their customers’ needs better, and offer them the services that they are most likely to want.

Challenges ahead
However, for this strategy to be successful, a complete overhaul of outdated procedures is needed. At the moment, legacy branch networks and heavy ties to previously manual processes mean that they’re not in a position to offer a refreshed and open customer experience. We expect banks in the new year to drive innovation as they aim to adopt a more agile and creative approach to personalise services and drive brand loyalty.