Payments Business
Why Turn to Digital Decisioning? A By Bill Waid
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TOTAL FINANCE
cross industries companies are waking up to the fact that customer experience (CX) is the pillar on which their fortunes rest. Consumer expectations are on the rise as they demand highly personalized engagement and in real-time. Fortunately, there is an overwhelming amount of data available which can be leveraged to better meet those expectations. Studies like from Qualtrics have found that investing in CX initiatives can up to double their revenue in as little as 36 months. As the financial services industry strives to meet consumer expectations, traditional banks and challenger FinTechs are turning to advanced analytics and digital decisioning in order to gain market share. According to Forrester, “A key challenge of digital business is deciding what to do in the customer’s moment of need — and then doing it. Digital decisioning software capitalizes on analytical insights and machine learning models about customers and business operations to automate actions… for individual customers through the right channel.”
Ideally, organizations are able to gain customer insights and act at the exact right moment. The core requirement to achieving this goal is access to greater amounts of data, from disparate sources and in a timely manner. With this data, financial institutions (FIs) can automate key decisions around many interactions and continuously improve those decisions with fresh insights. There are several areas where digital decisioning can be applied.
Streamlined onboarding Digital decisioning can enable and expedite online account opening, from chequing and savings to credit cards and loans. It’s not unusual for customers to never step into a brickand-mortar location in the onboarding process. Automating routine processes not only reduces cost it also supports customers who increasingly prefer digital interactions. By using additional consumer data beyond credit payments and scores, such as savings and nonloan payments, banks are able to better identify creditworthy consumers.
March / April 2020
