05/02/2024 | News release | Distributed by Public on 05/02/2024 08:49
As consumers move through the various stages of life, their experiences strongly impact their spending behavior, their management of finances, and how they prepare for retirement. Retail banking strategies should embrace these financial life stages by offering products and services to support each life stage. Financial institutions that look beyond simply offering products and focus on helping account holders achieve their goals form lifelong relationships with their account holders. To build a retail banking strategy that meets account holders' needs, financial institutions must continually strive to better understand their account holders' current life events using data analytics in banking.
The most effective retail banking strategies focus on the long-term financial wellnessof consumers. Financial wellness can be measured by a combination of factors, including overall satisfaction with the current financial situation, positive financial behaviors and attitudes, and an ongoing plan to help reach future financial goals.
With access to a wealth of data analytics in banking, banks and credit unions are in a unique position to help smooth out potentially choppy transitions through financial life stages. Here are a few ways your financial institution can support account holders' financial wellness with data analytics in banking:
The rise of fintech lenders shows that today's consumers value ease and efficiency, qualities that they often find in the tech-driven solutions offered by fintechs and neobanks. These companies provide faster loan approvals and processes than traditional banks and credit unions, appealing to a tech-savvy clientele.
Retail banking strategies need to adapt to fintechs and neobanks. Instead of simply classifying them as competitors, leverage their market research and product development for your own growth potential. Expand your loan portfolio to offer like-products and develop go-to-market materials that focus on borrowing needs required at each stage of life.
Here's how you can take advantage of this trend using data analytics in banking:
While some might consider credit card rewards programs outdated, they remain a significant draw for many account holders, particularly when these programs are personalized. Cardholders want to feel like they are being rewarded for the choices they make. But they want the rewards to be personalized to their unique activities, interests, and spending behaviors, which evolve as they transition between life stages. Make the data you have from your account holders' credit and debit transactions actionable to deliver personalized bankingservices to your account holders.
Use the insights about your account holders' preferred merchants to develop your credit card rewards program, incorporating your account holders' preferred activities and interests. Here are some specific examples of how to tailor programs to meet demand:
At every stage of life, your account holders will appreciate a unique set of credit card rewards. Get creative and have fun identifying rewards that will incentivize your account holders to increase card utilization. Be sure to discuss with your financial institution's compliance department before creating a rewards program.
By integrating these data-driven strategies, financial institutions can not only meet but exceed the expectations of their account holders at every financial milestone. To align account holder needs with their financial life stage, ask these questions:
Using data analytics in bankingcan help answer these questions and drive the institution's product strategy. Alkami's Customer Insights, extensive analytical toolkit, and expert team of advanced-degreed library scientists accomplish this mission with speed and accuracy. Our analytics platform cleanses and categorizes billions of inconsistently labeled transactions to produce actionable and usable insights.