Data is constantly sucked from our devices, collected, stored, and fed into marketing algorithms, but what else is it used for?
Financial institutions are looking for ways to leverage the mass amounts of data collected in their applications to enhance the customer experience and streamline transaction processes. In conversation with head of retail banking and funds at ING, Matteo Pomoni, Finextra learned how banks are looking to deliver a hyper-personalised and accessible banking experience for consumers by using data as their not-so-secret ingredient.
How to manage and secure customer data
There is a wealth of digital data that is extracted from the customer, which increases exponentially on a yearly basis. Pomoni explains that to utilise the sheer amount of data collected through the numerous data points in applications and online processes, they must ensure that the information is shared in relevant areas throughout the organisation. “We are trying to make sure that there is a direct connection in all the feedback that we receive, which is properly cascaded to flow to the product owners, who really make an impact on the front end for the clients,” he says.
Pomoni continues that the multiple points of contact throughout the banks many channels all include customer feedback surveys that are processed in real-time. This information is then integrated into a framework of external sources, such as Net Promoter Score (NPS), which ING uses to benchmark their performance against their competitors. By running these consistent evaluations, ING is leveraging information to create a full view of their impact and improve where it is needed.
Ensuring security and effective management of customer data is a complex, granular process Pomoni states: “When you have an omni-channel experience, it means that you need to have a consistency of data across the different channels that you are using. It's much easier to secure the data when they are siloed on a single channel, but when you have these open platforms, like most of our offerings, you need to have a specific security across the different data points to make sure that the data is properly managed and stored. Security is one element that we need stay on top of because it is what our clients are expecting from us.”
Why customer engagement is enhanced by Super Apps
The age of digital payments and transactions have arrived as a tidal wave to the payments industry, and banks are aware that the expectations of consumers has also drastically increased alongside it. Delivering satisfactory customer experience was at an entirely different level five years ago compared to what consumers expect from the market now.
Pomoni explains that the advent of Super Apps such as Amazon or Booking.com has evolved the rate at which services are personalised: “If financial institutions want to have a real connection with their clients, they need to make sure that their customer experience start from these Super Apps. We need to be where clients make their retail decisions to help them and to engage with them. That is another expectation that we need to fulfil. A good example of this is the partnership that we recently launched together with Amazon in BEL, where customers of ING in Belgium can now benefit from up to 11% cashback on Amazon.com.be. “
Being able to provide specialised discounts or offers with large purchases on these Super Apps is what sets leading financial institutions apart by being involved with their customer-base and anticipating what they want.
On customer expectations, Pomoni states that Big Tech sets the standards for digital experiences, and banks need to be at par to impress consumers. However, he emphasises that the challenge lies in being able to match customer expectations whilst retaining compliance to regulatory frameworks.
Pomoni closes by outlining the two main core strategies at ING: to maintain sustainability in every aspect of the brand, and to deliver superior customer experience in personal, instant, and well-connected customer experience for clients.