The pace of change in retail banking puts tremendous pressure on institutions to rethink how they craft their end-to-end customer journeys to meet a much higher level of expectation. Specifically, what’s changing?
- A major shift towards digital touchpoints, even for traditionally complex products and services
- Customer expectations and regulatory requirements for enhanced privacy and data protection
- Recognition of the role of data analytics in providing magnitude-level lifts in insight and explicit impact on customer experience
- A broadening of the banking ecosystem to include partners that enhance the overall financial relationship
- The emerging role of AI in shaping the full spectrum of operations, services, and advice
Digital leaders recognize the broad challenges associated with technical, organizational and customer change. They focus on aligning these fast-moving dynamics in ways that achieve meaningful gains with high rates of success. TIBCO’s customers who are achieving the strongest gains are focusing on the following areas:
More Predictive. The analytically rooted skill of using large sets of data to make intelligent decisions is the first area where financial institutions are focusing. Financial institutions that can identify scenarios like the following: the best products to add to a customer’s portfolio, the likelihood of decreasing usage of a line of credit, determining fraudulent behavior on a credit card, or the risk of defaulting on a mortgage, will lead the market.
More Personal. Retail banks that have the ability to integrate predictive scoring with clustering of like-minded customers to develop and deliver relevant offers, suitable answers, and proactive services through the channels most favored for the specific situation is the second capability.
More Real Time. The third is the increasingly critical capability of not just matching the right engagement to the right customer, but sensing the opportunity in the exact moment in which that next action comes into play. A missed moment in detecting a fraudulent credit card transaction, or responding to an online customer inquiry, or a merchant-funded offer at check-out can never be recaptured.
Keys to Success
Digital banking leaders are pursuing a number of tactical investments in TIBCO’s Connected Intelligence Cloud to achieve gains:
- Invest in a scalable and usable data platform. Note the word usable. A key to success is bringing together customer and product information across silos so the most important data can be used for delivering prediction and personalization.
- Govern and manage data across the organization. Provide both application development and data analytics tools where needed, while maintaining security and integrity.
- Invest in analytic tools and analytic talent. Build the capability in-house to recognize the competitive advantage of data science.
- Embrace transparency in prediction and personalization. New data regulations require it, customers expect it.
- Innovate and drive cultural change from the top. Innovation — particularly in a rapidly changing digitally dominant world requires new means of ideation, development, and collaboration. Speed over perfection is a necessary value — as long as missteps are rapidly rectified and lessons learned are applied to future innovations.