Access to data and the ability to effectively manage analytics will decide which financial institutions prosper, and which will be supplanted during this wave of transformation — this was one of the key conclusions taken from my recent report titled 'Analyse This, Predict That', which explores the financial services sector's analytics capabilities, and how players may use analytics to win in a competitive growth environment.
It became clear to me, working with the data, that organisations that use analytics extensively and systematically are rapidly out-thinking and out-executing their competitors. However, in what has historically been a very traditional business sector, the successful harnessing of the power of data analytics will require a new consumer engagement model — one that ensures that analytics enhance value whilst also reinforcing the trust that consumers place in their financial institutions.
But how ready are our financial institutions to compete with data analytics? The research suggests, not very.
The research studied 43 financial institutions across the Asia Pacific region, with results showing only 32 per cent are on the verge of, or ready to compete. A further 17 per cent identified their CEO and leadership team as having no commitment to data analytics. .
Undoubtedly the way we interact with financial institutions has, and continues to drastically change and these new technologies create a step change for financial service institutions to deliver the highly personalised analytics-driven experiences that customers now expect.
Encouragingly, the research identified that analytics-enabled financial services, and the experiences these capabilities provide, have the ability to alter the perceptions of consumers, as well as to support strategies to acquire, engage or retain customers — whether executed through a branch, contact centre or digital consumer channel.
Three such analytics-driven customer experiences highlight how embracing an analytics-driven approach can help channels to evolve:
- Contact.Me: Combines and extends the vision of a personalised contact centre and intelligent personal assistant, blending an intelligent personalised virtual financial assistant with a physical (but remote) relationship manager through an engaging and consistent interface.
- Branch.Me: Turns the branch into an environment for identifying visitors and understanding their intent and engagement preferences so that branch staff (and even branch infrastructure) can deliver personally optimised content and interactions.
- Digital.Me: Shows how providers can combine analysis of saving, spending, borrowing and investing behaviours with social analytics and broader market analytics to create online and mobile tools that help customers more effectively manage and use financial services.
The potential of data analytics to change consumer perceptions was clearly indicated via the consumer study, conducted at the same time, across Australia, Singapore, Malaysia, Indonesia and Hong Kong where respondents wereasked to evaluate a series of analytics-enabled service concepts:
- Personalised in branch experience
- Personalised contact centre/telephone experience
- Personalised digital banking experience
- Digital Advice
- Insurance customised to behaviour and lifestyle