The customer isn't one
Identical individuality is a pre-digital concept. Digital customers expect their banks to recognize their individual identity, their contextual needs and create personalized solutions that are relevant to their unique financial life stage. Customers want financial partners, rather than financial service providers, who will help them achieve their financial goals and aspirations. And so forth.
So, as choice expands, customers will increasingly look for financial partners who can deliver the best combination of personalized experience and contextual value. Traditional banking models would need to be reinvented with the customer at the focal point and experience as the key competitive differentiator. Delivering customer value and experience will gain priority over even cost and revenue targets.
Technology will need to play a central role in enabling banks to create personalized, interactive and productive experiences. Like it has done through the property guide app of the Commonwealth Bank of Australia, which not only unifies and streamlines the mortgage experience for customers but also strengthens the bank's position in the mortgage engagement cycle. Technologies like gamification and virtual reality will enable banks to influence behaviors and enhance experience. Gamification technologies, for instance, have been successfully leveraged by ICICI Bank, India's largest private sector bank, to encourage goal-based saving, educate customers about card security and deliver information more engagingly.
As the digital-only Fintech revolution gathers momentum, banks would need to shift to a truly digital banking model where customer context and experience drive business strategy. This model should focus as much on experience design as on helping customers achieve their financial goals. Broadly customer-centric mass personalization strategies will no longer count. Success will belong to those who are able to integrate the value of individualized context to deliver a truly digital 'segment of one' experience.
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