The Future of Banking: How Hyper-Personalization Transforms Financial Services
Welcome to the era of hyper-personalization, where financial services institutions like TSB Bank are leveraging machine learning (ML), artificial intelligence (AI), and big data to create tailored online experiences for customers. Kavin Mistry, head of digital marketing and personalization at TSB Bank, envisions a future where AI and ML are used to identify key events in a customer’s life that may require financial support, ultimately helping them achieve their life ambitions.
The goal of hyper-personalization is to use existing data and emerging technologies to assist customers in reaching their individual goals. Mistry describes a vision of TSB Bank’s hyper-personalized banking service, where a new customer’s first experience on the mobile app would involve establishing their needs through gamified information gathering. This approach aims to simplify the customer experience and provide a clear understanding of their current financial situation.
Samantha Searle, director analyst at Gartner, highlights two key objectives for a successful hyper-personalized banking service. Firstly, it should help customers achieve their financial goals, such as saving for a mortgage or improving budgeting. Advances in adaptive AI technologies enable banks to infuse goal-oriented information into their customer-facing processes. Secondly, the service should focus on supporting customers through significant life transitions, such as marriage or home-buying, by offering related add-on products like insurance.
Mistry gives an example of how TSB Bank could provide a hyper-personalized service to a first-time homeowner. The bank would set up experiences, communications, and targeted goals to help them save for a mortgage deposit. By analyzing spending habits and tracking progress towards the goal, TSB Bank would keep customers regularly updated on savings opportunities and benefits.
Achieving effective hyper-personalization requires a careful blend of technology. TSB Bank utilizes AI and ML-based modeling to understand customer behavior and tailor communications accordingly. The bank also explores AI products like Adobe Automated Personalization Activity and its generative AI model, Firefly. Additionally, TSB Bank is developing a Money Confidence Hub on Adobe Experience Manager, designed to help customers track and trace their hyper-personalized goals.
According to Searle, hyper-personalization is a crucial step for high-street banks seeking to stay ahead of competitors, particularly with disruptors like challenger banks gaining momentum. Some banks are partnering with fintech companies to enhance their hyper-personalized services. Searle emphasizes the importance of customer-centric efforts in achieving hyper-personalization using data analytics, machine learning, and natural language generation technologies.
While generative AI holds promise for hyper-personalization, Searle notes that we are not yet at the stage of banks incorporating ChatGPT-like services into their offerings. However, generative AI could be used for personalized marketing, providing customers with smart answers about products and reducing their need for external research.
While hyper-personalization is a significant aspect of the future of banking, Searle reminds us that other technologies will also shape the provision of financial services. Examples include robo-advisors guiding investment portfolios, AI-enabled financial coaches assisting with money management, and “machines as customers” conducting research and making decisions on behalf of individuals.
In conclusion, hyper-personalization is revolutionizing the banking industry, enabling tailored online experiences for customers through the use of AI, ML, and big data. Banks like TSB Bank are leveraging technology to help customers achieve their financial goals and provide support during significant life transitions. While generative AI holds promise for the future, other technologies will also play a crucial role in shaping the long-term provision of financial services.
At GPT News Room, we believe in the transformative power of AI and its impact on various industries, including finance. By harnessing AI-driven technologies, businesses can deliver hyper-personalized experiences, cater to individual needs, and provide valuable support. Stay informed about the latest developments in AI technology and its applications through GPT News Room. Visit us at https://gptnewsroom.com for more AI-related news and insights.