Imagine the future of banking, where every interaction you have with financial services is customized to meet your individual needs. Welcome to the era of hyper-personalization, where businesses use machine learning, artificial intelligence, and big data to create tailored online experiences for customers. Kavin Mistry, head of digital marketing and personalization at TSB Bank, is striving to create this type of personalized banking experience at his organization.
Mistry explains that the goal is to use AI and ML to identify key events in a customer’s life that may require financial support and use that knowledge to help customers achieve their life goals. By leveraging data and emerging technologies, hyper-personalization involves helping customers achieve their financial objectives and providing support during significant life transitions.
To illustrate this, Mistry envisions a bank where new customers onboard through a mobile app and their first experience involves establishing their needs. The bank would collect information and data in a gamified way to make the experience effortless for the customer and determine their current needs. This data-driven approach would allow the bank to offer personalized products and services as well as provide guidance throughout the customer’s journey.
TSB Bank uses AI and ML-based modeling to understand customer behavior and preferences, and they are continually exploring AI products and tools to enhance their hyper-personalization efforts. They are also developing a Money Confidence Hub within their app to help customers track and manage their personalized financial goals.
Samantha Searle, director analyst at Gartner, emphasizes that hyper-personalization is crucial for banks to stay ahead of the competition, particularly with the rise of challenger banks. Some banks are partnering with fintechs to improve their personalized services. While machine learning is important, Searle notes that other technologies like natural language generation and generative AI also play a significant role in hyper-personalization.
While hyper-personalization is integral to the future of banking, Searle suggests that other technologies will also shape the long-term provision of financial services. This includes robo-advisors, AI-enabled financial coaches, and AI assistants that can make decisions on behalf of customers.
The future of financial services will heavily rely on technology, and the evolution of AI technologies presents opportunities for the financial industry to enhance customer experiences and provide more tailored services.