Customer-Centric Innovation in Finance

Customer-centricity has become the backbone of many businesses, including those in finance. After all, it lines up with modern client expectations and is crucial to deliver positive experiences. To strengthen the customer-centric approach in banking, you need innovative solutions. But what particular technologies will help you with this task? Find it out in this article!

Table of Contents

• What Is the Customer-Centric Approach in Banking?
• Customer-Centric Innovative Solutions for Banks
  • Customer Data Platforms
  • Artificial Intelligence
  • Multiple Innovations for Personalization
• The Takeaway

What Is the Customer-Centric Approach in Banking?

The customer-centric approach in banking refers to the strategy of delivering custom solutions tailored to the needs of the specific customer. It stands contrary to the traditional product-centric approach, where banks attempt to deliver one-size-fits-all products.

Adopting the customer-centric approach and embracing personalization are currently among the hottest digital banking trends. After all, younger generations of customers demand customized treatment; hence, banks need to find ways to embrace customer-centricity.

Customer-Centric Innovative Solutions for Banks

There are many customer-centric strategies and designs, but the extent to which you utilize this approach almost always depends on the use of innovative technologies. What solutions can help you turn your organization towards true customer-centricity?

Customer Data Platforms

The customer-centric approach in banking is only as effective as the data it is based on. Thus, before implementing complex analytical solutions, modifying your apps, and improving your products, you need to start with proper data acquisition. This involves:

• creating a single source of truth,
• automating data collection and categorization,
• cleansing your data to remove errors, noise, and biases.

This is why the first technology you should implement in your customer-centric strategy is a customer data platform for banking and finance. Such a platform will help you organize your data and make it available for other innovative solutions.

Artificial Intelligence

Collecting data is not enough—you need to process it and turn it into actionable insights. This is why the second customer-centric innovation is artificial intelligence, a solution that helps you utilize your data.

AI-powered analytics enable you to quickly extract insights about each of your customers and use them in your organization. Nevertheless, this is but the second out of three steps.

Multiple Innovations for Personalization

Having collected and analyzed your data, you can get to the true core of customer-centricity and personalize your content, product, and services. You may use multiple innovative solutions for this purpose, for instance:

• Generative AI – in the form of chatbots that adjust to each customer, but also as prompters for your employees, which may suggest personalized product recommendations or tailor the tone of the message.
• No-code and low-code technologies – to design new digital products or adjust the existing ones efficiently, without the need for experienced developers, but also to automate internal processes.
• eKYC technologies – solutions like AI, ML, OCR, and biometrics that enable you to modify the level of automation in your onboarding process and to make digital channels more convenient for these clients, who prefer them over traditional ones.

Naturally, the above are just a few examples—the most promising ones. Almost any innovative digital technology can help you adopt the customer-centric approach in banking, at least to a small extent.

The Takeaway

Customer-centric innovations and technological solutions are all around us. If you embrace digital transformation in banking, you will implement them anyway. However, it’s good to evaluate your potential tech stack beforehand and ensure that it brings as much value regarding customer-centricity as possible. If you need help developing your IT solutions or looking for software components, contact us – we’ll be happy to help!

Did you like this article? You might also read: Customer Experience in Banking – how to improve and trends.

Ailleron

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