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AMERICAS FINANCE

Today’s consumer is digitally savvy and always on the go. They’ve come to expect simple user experiences coupled with information that is easy to understand and accessible wherever they are.

Consider the customer journey

The biggest challenges facing financial organizations don’t stem from insufficient technology. They result from the difficulty of integrating emerging technologies within established systems. This means shifting from siloed, department-centric organizations to agile, customer-centric organizations that leverage digital technologies to create better customer experiences. It’s no longer adequate to passively wait for consumers to make a purchase decision after they’ve become a client. Instead, banks and financial services organizations need to engage consumers at every stage of their purchase journey. This isn’t just because of the immediate opportunities to convert interest to sales, but also because the decisions that consumers make are informed by the quality of their experiences.

Consumers are constantly inundated with messages across a variety of channels and devices. Financial organizations need to craft compelling consumer experiences in which all interactions are personalized. To do this, financial companies should engage with consumers using the right channel(s) and at multiple touch points along the way. The most successful organizations have learned that digital marketing is not an add-on to their marketing. They understand the importance of integrating it into their overall planning, analytics and messaging strategy, enabling teams and individuals to foster near realtime customer engagement. This brings value to the consumer while also delivering bottom-line results to the organization. Focused on delivering an innovative customer experience, services like Wealthfront, FutureAdvisor, and Betterment, have established themselves as leaders in the emergent “robo-advisor” field. Their approach isn’t new. Using personal income, net worth and attitudes to assess a client’s risk tolerance, they recommend and build portfolios similar to a live broker but with better content, explanations and tutorials. What’s also different is that since twothirds to three-fourths of financial advisors don’t make it beyond five years, trust is much higher knowing that they’re not relying on the advice of someone in a transient commission-based role.

Bring digital to the forefront

Banks are great at risk management, financial governance, investing and asset management – the core competencies of a financial institution. For most financial services companies, digital isn’t a priority because it’s simply never been a part of a bank's DNA. In order to bring technology to the forefront, banks must make cultural and institutional changes to let technology drive enhanced customer experiences. To truly drive innovation in the customer lifecycle, financial institutions need to leverage the vast amount of consumer insights and data to effectively guide multi-channel marketing initiatives and personalization. Organizations must apply advanced analytics to the vast amount of structured and unstructured data that’s at their disposal to gain a holistic view of their consumers. This includes analyses of the consumer’s current relationships, recent behaviors and past experiences with the company. This requires thinking like an eCommerce company more than a bank while still maintaining a high degree of customer privacy and protection. All players in the “robo-advisor” space have taken advantage of this array of data. While many financial service providers look to demographics to tell them who their prospective client is to craft ad campaigns and plan media, it's rarely used to personalize and improve the experience. Issue 3

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Profile for Global Banking & Finance Review

Global Banking & Finance Review - Business and Financial Magazine  

Global Banking & Finance Review is a leading financial portal and Print Magazine offering News, Analysis, Opinion, Reviews, Interviews & Vid...

Global Banking & Finance Review - Business and Financial Magazine  

Global Banking & Finance Review is a leading financial portal and Print Magazine offering News, Analysis, Opinion, Reviews, Interviews & Vid...