What Do Consumers Really Need From Their Banks?
Not just contextual offers or financial advice.
Many, many years ago banks would get to know their customers; actually know them as well as, or better than “big data” does in today’s tech-driven market. (check out The Better Bank Was Already Built, Sans Fintech) The bank manager might have dinner at a customer’s home. Conversing with the family the banker might learn that the family is expecting a new child and also in the market for a new car, which they planned to purchase at the local dealership.
This banker would then take the newly learned information back to the bank, look over the customer’s current finances and say, “to ensure your savings account is sufficient to cover having a baby, you’ll need to purchase a cheaper car at the dealership in the next town over, which has a business loan here at the bank.” And, “when the time comes I will talk with your doctor and let him know you’re tight on money, so maybe he could lower the delivery costs.” Also, “we’ll see about getting you a discount card for groceries, since my uncle owns the grocery store, and lower your monthly mortgage payment a few dollars.”
Now of course this could not happen in today’s mass market; or could it? There aren’t enough bankers around to take an in depth personal interest in customers, nor proactively make decisions for the customer. However, we now have big data, the IoT, cognitive learning, and AI that can mimic that banker of the past while servicing millions of customers.
These customers don’t need more contextual offers and advice that they can’t relate to or are not able to act on. The typical banking customer is not financially savvy enough to timely take advantage of offers/advice with success. They need the banker, who is the expert, to be proactive in making decisions. Just like in the past, the bank manager (replaced by AI) can make real time decisions for their customer’s account to constantly maintain and improve the financial health of the customer.
Would you like your bank to ensure that you’re better off financially a year later, and so on? Do you feel confident and secure if your bank’s message is, “Your Financial Well-Being Leads to our Financial Success!”?
Fintech can make it happen. Banks have the ability to give the customers what they need: proactive, real time account adjustments to ensure ongoing financial improvement.