Reviving personalized banking with transaction data

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Digital transformation is one of the biggest shifts in core banking fundamentals in the past few years – and for more reasons than you might realize. Before digitization, banking was done solely in the local branch. Bankers worked with their customers face to face, building relationships by learning about each individual customer and their unique life situation.

The digitization of banking services has brought decentralization with fewer customers ever setting foot in a physical banking branch. Boxley Llewellyn, VP for customer insight and cognitive engagement at IBM, and Rob Heiser, president and CEO of Segmint, a leading provider of secure data-drive software for companies in highly regulated industries such as financial services, discuss how technology is helping financial services companies distill their transaction data to help make banking personal again in the age of digitization.

A recent report from Segmint found that 80 percent of bank customers expect their bank to provide them with information to help them make better financial decisions, but only 28 percent of customers feel their bank provides them with information that helps them reach their personal financial goals and life events because banks simply aren’t equipped to handle that level of personalization at scale.

How can an industry that once thrived at building relationships in the bank branch excel in today’s society?

Segmint’s patented software activates copious quantities of data by integrating predictive analytics, campaign management, multi-channel message delivery, and campaign reporting into one secure solution, driven by the company’s patented Key Lifestyle Indicators (KLIs).

Technology like KLIs is helping financial institutions categorize their data to make banking personal again. An individual’s transactions reveal a great deal about their current life, interests, hobbies and financial picture. With transaction data, banks have access to a wealth of rich insights about their customers, but they struggle to translate them into meaningful insights.

Boxley and Rob recently met Matt Kinney, offering manager in the IBM Watson Financial Services group, to record a Fintech in Focus podcast.  Listen as they discuss the new partnership between IBM and Segmint and how it brings together the speed and agility of Segmint’s KLIs and the power of IBM’s Customer Insight solutions.

Bringing these tools together allows customers to not only anticipate customer needs but to also tailor offers and messages relevant to an individual’s circumstance.

We consume a lot of data. But how much of that data are we actually able to use? Banks are sitting on a gold mine of information, but they have to use it responsibly by creating meaningful messages for customers about products that will help them in their unique life situation.

Note: this blog was originally published

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