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Can banking Hyper-Personalization enhance your business experience?

Renowned author and banking industry visionary Brett King once highlighted the shifting landscape of customer expectations, stating; "The most seamless customer experience isn't one where you navigate to a physical branch, search for parking, endure waiting lines, seek advice, and sign paperwork. It's about activating the service you require instantly when the need arises."

 

The influence of big tech, fintech, and consumer-centric organizations has reshaped consumers' perceptions of traditional banking relationships. These entities have served as catalysts for change within traditional institutions, showcasing the possibilities and driving the evolution of digital engagement. Leveraging data and consumer insights, they've introduced more tailored offerings, contextualized products, and personalized experiences.

 

Based on findings from the 2023 Datos Insights Report focused on small businesses, nearly half of SMBs desire enhanced capabilities beyond what their primary financial institution currently provides. Among those SMBs leveraging tech companies for payroll, invoicing, payments, and similar services, a significant majority—81%—indicate a preference for obtaining these services from their primary financial institution.



 

This presents a substantial opportunity for financial institutions to prioritize their SMB customers. However, despite this potential, the report reveals that only 23% of respondents consider assisting SMBs in obtaining an up-to-date and accurate overview of their business finances as their top priority.


Looking ahead to 2024, banks are compelled to leverage their wealth of customer data to deliver differentiated customer journeys. The aim is to provide experiences that seamlessly integrate banking into customers' everyday lives, making it frictionless and virtually imperceptible.

 

Millennials and Gen Z, who have been immersed in digital technology from a young age, often have reservations about traditional banks due to their exposure to widely publicized mishaps within the banking sector. These missteps, such as deceptive account practices, unethical lending behaviors, and the fallout from consumer fraud and data breaches, have led to a sense of skepticism among these digital natives. With their considerable purchasing influence, they now represent a formidable obstacle for banks to overcome.

 

The rise of nontraditional fintech players, coupled with initiatives from tech giants like Apple, further intensifies the threat to banks. As consumers explore alternative solutions for financial services, including lending and wealth management, traditional banks face declining deposits and revenue opportunities.

 

To stay competitive and address evolving consumer demands, traditional banks must overhaul their digital presence, customer journeys, and product offerings. Embracing hyper-personalization at scale through data-driven insights and forging strategic partnerships will be pivotal in enhancing the digital experience for customers.

 

Industry forecasts indicate a shift toward real-time sentiment analytics driving consumer engagements, and fostering growth in customer loyalty and retention. Additionally, investments in digital marketing are projected to surge, with the financial services sector leading the charge.


At YeeGoals we provide Banking Personalized so our business clients can experience Better Banking Relationships in the Digital World and we invite community banks to partner with us so they can provide a personalized service to our Business Customers.

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