AI-driven CX Personalization is the Next Wave in Digital Transformation

Banking has always been a relationship business – knowing what the specific customer needs are and providing them with a personalized mix of financial products requires an intimate knowledge.

But what happens when your customers only have digital interactions with your bank? How can this personalization happen when you don’t have these opportunities to see the customer in person and discuss their needs with them?

The next wave of digital transformation in banking will address this challenge. We believe that artificial intelligence (AI) is the key ingredient that will enable superior personalized digital customer experience (CX) at scale.

Let’s see what that means in practice.

What is personalization, actually?

Do you remember the last time you received a gift that you didn’t really like? It was probably something generic, maybe something you didn’t need at all or something you already had. It didn’t make any sense for you when you received this gift…

Now remember the last time you received a perfect gift – one that really pleased you and that you have put to good use. It must have come from somebody who had a real knowledge of who you are. They must have spent some time reflecting over their knowledge and trying to figure out what your current needs are. Then, the person who gave you this gift must have come up with a great mix of features – not necessary something pricey, but something that made this present really valuable. And we also bet that part of the experience was that you got it at the right moment for you – it was a delightful surprise!

These are the ingredients of both the perfect gift and the great personalized CX – intimate knowledge, finding the real needs, making the right combination and timely presentation.

Intimate knowledge

Banks are sitting on tons of customer data and most of it is never really used. This data will only increase the more services and interactions become digital only. Integrating this data from different sources into a single customer profile will help you know your customers intimately – better than they know themselves. But make sure your customers agree to that in advance!

Action plan:

  • Take explicit consents from your customers that they agree their data to be used for CX personalization, clearly stating what’s in for them.
  • Use modern integration technology to put all relevant customer data in one place, including capturing customer events in real time.

Finding the real needs

How can you empower your employees to provide advice to your customers remotely?

Machine learning provides the best approach to build predictive models and generate customer insights such as behavior segmentation, transaction categorization, purchase propensities and churn prediction. These insights can enrich the customer profile and make the real needs of each customer obvious – whether they like to save or spend, if they love ski or going out, or if it is time for them to buy their first home.

Action plan:

  • Make sure the customer data is organized in a way that will allow you to perform full-scale automated machine learning.
  • Deploy machine learning algorithms that process data and generate insights – some of them in real time.

Making the right combination

Is it time to sell or just to give advice? Certainly, a professional banker will not rush into selling everything they have in their product portfolio. Value comes from combining the clear information based on each customer’s needs with the right product. Let the customer learn more about what’s best for them and make an informed decision about their finances. That’s what makes personalized advice the perfect gift.

Action plan:

  • Deploy next-best action models combining lots of advisory value including reminders and insights on customer’s spending and other transaction activity.
  • Sell only what the customer really needs – don’t push every product in promotion to all your customers.

Timely presentation

How can you empower your employees to provide advice to your customers remotely?

When and how do you deliver this personalized experience to your customers? They certainly have preferences, and you would already know that. What is their touchpoint of choice – mobile app, messages or email? What time of the day they usually interact with the bank? You must consider the answer to all these questions, and that requires automation.

Action plan:

  • Automate the personalized communication through the right channel, in the right moment.
  • Deploy smart assistant delivering natural text or voice-based conversational user experiences.

BULPROS and IBM can help you deliver that great personalized CX today. Contact us to see how a demo and discussion of our Smart Interactions solution.

AI-driven CX Personalization is the Next Wave in Digital Transformation

Banking has always been a relationship business – knowing what the specific customer needs are and providing them with a personalized mix of financial products requires an intimate knowledge.

But what happens when your customers only have digital interactions with your bank? How can this personalization happen when you don’t have these opportunities to see the customer in person and discuss their needs with them?

The next wave of digital transformation in banking will address this challenge. We believe that artificial intelligence (AI) is the key ingredient that will enable superior personalized digital customer experience (CX) at scale.

Let’s see what that means in practice.

Do you remember the last time you received a gift that you didn’t really like? It was probably something generic, maybe something you didn’t need at all or something you already had. It didn’t make any sense for you when you received this gift…

Now remember the last time you received a perfect gift – one that really pleased you and that you have put to good use. It must have come from somebody who had a real knowledge of who you are. They must have spent some time reflecting over their knowledge and trying to figure out what your current needs are. Then, the person who gave you this gift must have come up with a great mix of features – not necessary something pricey, but something that made this present really valuable. And we also bet that part of the experience was that you got it at the right moment for you – it was a delightful surprise!

These are the ingredients of both the perfect gift and the great personalized CX – intimate knowledge, finding the real needs, making the right combination and timely presentation.

Banks are sitting on tons of customer data and most of it is never really used. This data will only increase the more services and interactions become digital only. Integrating this data from different sources into a single customer profile will help you know your customers intimately – better than they know themselves. But make sure your customers agree to that in advance!

Action plan:

  • Take explicit consents from your customers that they agree their data to be used for CX personalization, clearly stating what’s in for them.
  • Use modern integration technology to put all relevant customer data in one place, including capturing customer events in real time.

Machine learning provides the best approach to build predictive models and generate customer insights such as behavior segmentation, transaction categorization, purchase propensities and churn prediction. These insights can enrich the customer profile and make the real needs of each customer obvious – whether they like to save or spend, if they love ski or going out, or if it is time for them to buy their first home.

Action plan:

  • Make sure the customer data is organized in a way that will allow you to perform full-scale automated machine learning.
  • Deploy machine learning algorithms that process data and generate insights – some of them in real time.

Is it time to sell or just to give advice? Certainly, a professional banker will not rush into selling everything they have in their product portfolio. Value comes from combining the clear information based on each customer’s needs with the right product. Let the customer learn more about what’s best for them and make an informed decision about their finances. That’s what makes personalized advice the perfect gift.

Action plan:

  • Deploy next-best action models combining lots of advisory value including reminders and insights on customer’s spending and other transaction activity.
  • Sell only what the customer really needs – don’t push every product in promotion to all your customers.

When and how do you deliver this personalized experience to your customers? They certainly have preferences, and you would already know that. What is their touchpoint of choice – mobile app, messages or email? What time of the day they usually interact with the bank? You must consider the answer to all these questions, and that requires automation.

Action plan:

  • Automate the personalized communication through the right channel, in the right moment.
  • Deploy smart assistant delivering natural text or voice-based conversational user experiences.

BULPROS and IBM can help you deliver that great personalized CX today. Contact us to see how a demo and discussion of our Smart Interactions solution.

About the author

Radoy Stoyanov

Principal Consultant

Radoy is a former C-level banking executive in IT, Operations and Marketing for more than 10 years, and a software consultant for another 10 years. He has spent the last 3 years advising and delivering digital transformation projects at banks, insurers and FinTech startups. He specializes in digital business models, digital customer journeys and user experience, Open Banking, PSD2 and API economy, mobile wallets, payments, loyalty, AI, as well as cloud native architectures.