02 October 2014

70090

Andy Hirst - SAP

4 | posts 6,565 | views 2 | comments

Big Data is the key to the future of digital services

23 June 2014  |  3420 views  |  2

 

Nowadays, big data isn’t so much big, as XXXL. Financial institutions are grappling with increased information demand in real time from both customers and regulators, while also finding optimal ways to store, organise, present and monetise the increasing data crush. But how can data be used by banks to provide a better level of service, making consumers lives easier?

 

Customers want insight at their fingertips

The Banker and SAP report on customer engagement in the digital age showed that of the banks surveyed, 57% can disseminate information to customers in real time – when customers exceed a certain account balance limit, for example. That doesn’t sound too bad, but consider that only 2% of banks can offer customised products in real time based on events such as a large deposit in a current account. In short, banks are still lagging behind customers’ needs and expectations.

 

Expectations are high, but varied

Our survey showed that this is an area where banks must tread with caution. What’s acceptable to a group of customers in one country, may look like an invasion of privacy in another, or even vary between regions. Yes, people want personalised interactions that are relevant and that add value, but they want them at the right time and place. Did you know that the French, for example, are more likely to find marketing intrusive, if it’s based on life events in social media?

 

Big data as the big door to new services

Using intelligent data analytics, banks can derive more than customer insight – they have a great foundation on which to build new services. Sites like www.moneysupermarket.com have turned big data into a valuable service, while http://peoplelikeu.com.au/ benchmarks user profiles and spending, so customers can see how they compare with others like them.

 

Banks have access to a wealth of information, and should use it to build bridges with customers, and deliver high-value new services. In addition to improving services now, predictive analytics is a valuable tool for the future. Don’t look at how the world is – look at how it will be.

 

The Banker/SAP report: Customer Engagement in the Digital Age

TagsRetail bankingInnovation

Comments: (3)

Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 25 June, 2014, 13:04

A couple of years ago, when I foreclosed many fixed deposits and requested a demand draft for the proceeds, my banker asked me why I was losing interest by prematurely closing my FDs. I replied back saying I needed the money to buy a house. He asked me why I didn't take a mortgage. I replied back that I'd lose the deal if I'd to jump the various hoops required for the bank to approve a mortgage. I thought I'd fobbed him off adequately. But, to my utter surprise, he turned around and promised a loan immediately and to make the disbursement within one hour! 

Under normal circumstances, I would've treated this whole thing as an invasion of privacy and refused to answer the banker's first question. However, on this occasion, I went ahead because I'm fond of this bank (State Bank of India) and have a great respect for almost every employee in its branch.

You're spot on in that banks should exercise caution with their customer engagement approach based on cultural differences. In addition, as my example illustrates, the same customer might behave differently with different banks. 

PS: The hyperlink at the bottom of your post goes to a webinar registration. Is there another link for the report?

Andy Hirst - SAP - LONDON | 01 July, 2014, 11:31

thanks for your view ketharaman

Download
the report now.

here is the link to the report

Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 07 July, 2014, 09:07

@AndyH: TY. I was now able to download the report. 

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Latest posts from Andy

Big Data is the key to the future of digital services

23 June 2014  |  3420 views  |  2  |  Recommends 0 TagsRetail bankingInnovation

Driving digitisation: the big win-win for both sides

19 May 2014  |  707 views  |  0  |  Recommends 0 TagsRetail bankingTransaction banking

To be in-branch or not to be in-branch? That’s the question

12 May 2014  |  1305 views  |  1  |  Recommends 0 TagsMobile & onlineRetail banking

Give them the Omni Channel Expereince

08 May 2014  |  1134 views  |  0  |  Recommends 0 TagsRetail bankingInnovation
name

Andy Hirst

job title

VP Banking Solutions SAP

company name

SAP

member since

2014

location

LONDON

Summary profile See full profile »

Andy's expertise

What Andy reads
Andy writes about
Andy's blog archive
June 2014 (1)May 2014 (3)

Who is commenting on Andy's posts

Alex Johnson
Ketharaman Swaminathan
Paul Love