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10 minute read

How the Financial Services Industry Can Understand Customers Better with Data

How the Financial Services Industry Can Understand Customers Better with Data
As the data footprint rapidly develops in the Financial Services Industry, financial institutions are facing immense competition from cloud-based virtual banks that have appeared. Owing to this, customers expect institutions to deliver smooth, technologically forward services across all channels. According to Qualtrics, 70% of customers who left their financial institutions cited that the services didn’t meet their expectations.

For financial institutions to steer through this competitive market, it is vital for them to foster effective customer value management and retention techniques that are in line with the digitized world we live in to create experiences that secure their trust and loyalty. Here are a few pointers on how that may be achieved:

Formulate a logical financial services data model

Having a business-driven conceptual data model that aligns with all analytical requirements is of primary importance. In covering all aspects of business, right from customer biodata to products, transactions and contracts, a logical financial services data model helps maintain a single, consistent version of the truth. This provides a solid foundation for deep customer understanding and CRM-related activities that today’s financial institutions need in order to compete in the digital age.

Segment your customer data systematically

Ensure your customer data is systematically organized under categories such as age, gender, household relationships, location, technological preferences, credit ratings, milestones, etc. This way, it is easier to build individual profiles for each customer which can be used for segmentation, personalised targeting, loyalty programmes and more.

It is essential to segment your customers in accordance with a number of categories.

Personalize your services

It is essential that financial institutions know their customers well enough to deliver personalised services to them. Some steps that you can take in this regard are as follows:

  • Employing a unique end-to-end approach for each client’s financial goals.
  • Using varied channels, such as chatbots to appeal to customers on a personal level.
  • Using data and advanced analytics techniques to forecast their needs and prevent problems before they arise.

Simplify processes through Automation

Management of customer databases, case files, monetary transactions and other data-dense documents can be complicated, time-consuming and costly. AI technologies can be employed to simplify a variety of customer-centric processes that were previously tedious. Employing effective AI automation technologies is highly efficient and eliminates the possibility of human error, resulting in improved credibility for financial institutions.

The more you know about your customer, the better placed you are to understand them and predict their wants and needs. This in turn drives and maintains high customer satisfaction – something which is crucial in the highly competitive Financial Services arena today.

If you work in Financial Services and would like some assistance in making better use of your data and AI to optimize customer value management and customer satisfaction, please don’t hesitate to drop me an email at

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How the Financial Services Industry Can Understand Customers Better with Data
David Fitzpatrick
David, the founder of Clear Strategy, is a leading business and technology professional with over 20 years' experience in Data and Analytics.
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