Digital banking consumers are looking for more personalized experiences when they bank online. A recent study found that 50% of digital banking consumers expect their bank to provide a highly personalized experience.

So, if you're not already doing so, it's time to start personalizing your customers' experiences with dynamic content and targeted offers.

Using data analytics to understand your customers' needs and preferences can create a custom experience that meets their expectations and sets you apart from the competition.

Remember that providing a truly personalized experience requires ongoing effort and regular updates, so don't let your hard work fall by the wayside. Let's take a look at the significance of hyper-personalization in banking.

What is Hyper-Personalization in Banking?

Hyper personalization in banking is the process of tailoring banking products and services to meet each customer's specific needs.

It involves understanding the customer's unique circumstances and preferences and then configuring products and services accordingly.

This can be done by using data analytics to identify customer trends or providing a dedicated relationship manager who understands the customer's specific needs.

Hyper personalization in banking

Banks can better serve their customers and improve loyalty and satisfaction levels by taking this personalized approach.

How Are Banks Using Customer Data For Personalized Experiences?

Banks use customer data to personalize the user experience by understanding their needs and wants.

Banks can collect a lot of data on their customers, including what products they use, how much money they have deposited, and what transactions they make.

By analyzing this data, banks can better understand what products and services their customers might be interested in. They can then use this information to provide targeted recommendations and offers tailored specifically for them.

Here's an example:

Amount owed by the customers

This helps to create a more personalized experience for the customer, which is likely to be more appealing than generic offers. It also allows the bank to understand better what products and services its customers are likely to be interested in, which can help inform future product development.

Banks may use several different types of customer data to personalize their experience:

  • Including basic information you provide when you open an account (e.g., name, address, date of birth)
  • Account activity data (e.g., deposits, withdrawals, payments)
  • Contact information (e.g., email address, phone number)
  • Marketing preferences (e.g., whether you want to receive promotional emails or text messages from the bank).

Some banks may also use third-party data sources to supplement the information they have about their customers. For example, they may purchase data about your demographics (e.g., age, gender) or web browsing history from companies that collect and sell this type of information.

Also Read: Hyper-Personalization: How to Use it to Power Your Marketing Success

Why Must Banks Adopt Hyper-Personalization?

Banks cannot just get away with one-size-fits-all experiences in this digital age. As customers increasingly turn their attention away from face-to-face interactions and toward technology as an app or through social media platforms where they can customize what information is given out when chatting with someone new.  

This way, hyper-personalized customer service becomes necessary and even more apparent.

  • Increased competition in the banking sector has made it difficult for banks to differentiate themselves from one another. Banks need to find ways to distinguish themselves and provide a unique customer experience to attract and retain customers.
  • Customer behavior has changed in recent years, with customers increasingly expecting a personalized experience when interacting with businesses.
  • Advances in technology have made it possible for banks to collect and analyze customer data more efficiently and effectively than ever before, enabling them to provide a more personalized experience.
  • There is a growing demand among customers for personalized banking products and services.
  • Personalization can help banks improve their customer retention rates, increase revenue, and reduce costs.

Here's an example of a bank sending a credit card statement to their customer:

Link to the video here - Personalized Credit Card Statement - Video Personalization Template

6 Best Examples of Hyper-Personalization in Digital Banking

1. Product Recommendations

Banks are using data to understand their customers' needs better and recommend products that they may be interested in. For example, a bank might recommend higher-yield savings account to a customer who frequently saves money or a credit card with cashback rewards to a customer who often shops online.

2. Customized Dashboards

Banks are providing customized dashboards that show customers their account balances, recent transactions, and other important information at a glance. This allows customers to quickly and easily see the most relevant information to them.

3. Predict Customer Needs

One of the best examples of hyper-personalization in digital banking is how banks predict customer needs. For example, if you have a checking account with a given bank, they may recommend a savings account or a credit card tailored to your specific needs.

By analyzing your past transactions and using machine learning algorithms to predict your future behavior, banks can provide you with products and services that are more likely to meet your needs. This saves you time and hassle, but it also helps you make better financial decisions.

4. Personalized Loan Offers

By mapping a customer's spending patterns and understanding their financial goals, banks can offer loans that are specifically tailored to each individual. This makes the process of taking out a loan much simpler and more efficient, but it also helps ensure that customers get the best possible terms and rates.

Refinancing Loans - Video Personalization Template
Send personalized videos to customers and encourage them to refinance loans. See an example and explanation below!

5. Targeted Marketing Campaigns

Another great example of hyper-personalization in digital banking is how some institutions now send out targeted marketing campaigns based on customers' spending habits.

For example, if a customer typically spends a lot of money on dining out, the bank might send them a restaurant gift card as a special offer.

This type of personalization goes beyond just generic offers and instead provides customers with specially tailored deals that are more likely to appeal to them.

6. Providing Financial Management

In providing financial management services, bankers can use data collected on customers' spending habits, repayment behavior, and other interactions to develop unique profiles.

This information can then be used to deliver targeted content and products that better suit the needs of each customer.

Banks are starting to see the importance of personalization, but it's not enough. To keep up with consumer demand for hyper-personalized experiences, banks need to embrace new technologies and strategies that will allow them to provide more customized services.

Are you ready to meet the challenge? Let us help you get there.