Study: Banks Lagging On Personalization, Consumers Say

Email specialists working for banks should be at least somewhat concerned by the results of a new customer survey.

Only 45% of consumers feel their bank is very effective of delivering a seamless experience across all channels, although 88% expect one, according to a study from Redpoint Global, conducted by Dynata.

Perhaps worse, many feel their banks are falling short on personalization despite the abundance of granular personal data they have on customers. In fact, 67% say most retailers are better at it than their banks.

Put another way, 82% of consumers expect their banks to personally understand them. But 38% say their bank is succeeding. 

In addition to its other implications, this study implies most emails are wide of the mark. Email departments must ask themselves whether they are sending timely, relevant and valuable information to customers.

If they’re not, it may not be their fault.

While a growing number of forward-thinking banks are trying to close the gaps in consumer expectations, “many banks are struggling on the best approach to bring together their customer data,” states Brian Morris, financial services partner at Pricewaterhouse Coopers, LLC. 



What banks need is an integrated view of the customer, Morris continues. That means they need to “invest in the technology that allows them to easily view the larger context via integrating more data — such as behaviors, households, centers of influence — in a coordinated way to orchestrate the right messages for their customers based on that data,” he says. 

“Today’s consumers expect their financial institutions to deliver seamless, personalized, relevant experiences at a cadence that meets their needs, but many organizations are simply missing the mark,” adds Dale Renner, CEO and co-founder of Redpoint Global.

The study notes that 54% of consumers feel digital-first financial services like Apple, QuickenLoans, and SoFi are investing much more in personalization than traditional banks. 

That should change, given the conditions caused by COVID-19. Prior to the pandemic, 26% of consumers were using digital banking in a notable way. That hit a peak of 83%, and 76% use a mobile banking app.

Of those surveyed, 57% changed their habits solely due to lockdowns. But 76% overall plan to continue with digital even after the pandemic. 



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