Communicating with 1:1 personalized experiences is no longer a “nice-to-have” for financial institutions. It’s essential. The stats in this infographic illuminate the state of personalization in the financial services industry.
The Importance of Personalization in Financial Services
1. THE IMPORTANCE OF
PERSONALIZATION
IN FINANCIAL SERVICES
As more companies provide truly
personalized digital experiences,
the more conspicuous it becomes
when a company does not.
This is true across industries.
Consumers don’t just
compare their experiences
from bank to bank,
insurance provider to
insurance provider,
brokerage firm to
brokerage firm.
They compare all the
experiences they have online.
Communicating with
customers and prospects
with 1:1 personalized
experiences is no longer
a “nice-to-have” for
financial institutions.
It’s essential,
as these stats show.
Financial Institutions
Recognize the Value of
Personalization
78%
of financial institutions
(FIs) increased investment
in customer experience
innovation in 2017¹
50%
of all banking providers
believe AI will have
a significant impact on
their business model³
79%
of FIs consider it “very”
or “extremely” important
to deliver guidance to
customers in real time⁵
32%
of financial services executives
say their organizations are using
AI technologies such as predictive
analytics, recommendation engines,
and voice recognition and response²
14%more revenue – what FIs
estimate they'd earn if they could
successfully offer customers an
individualized experience4
Consumers Expect Experiences
Personalized in Real Time
40%
of consumers say that
providing a personalized
service would change their
loyalty to their bank⁶
Two in five millennials complain that the offers
they receive from banks are not personalized⁷
But There is Work to Do
40%
of all but the very largest
financial institutions consider
themselves “static” (meaning
they offer no personalization)⁸
50%
of FIs cite “legacy technology”
as the main barrier to
digital transformation⁹
Top two reasons FIs feel they
cannot effectively leverage big data to
deliver better experiences:
The financial services industry is not immune to the trend – consumers
are expecting personalized experiences across channels. The good news is
that FIs are recognizing this trend and making strides to overcome internal
barriers to deliver personalization. But they still have work to do,
and Evergage is here to help.
Data is too distributed
and in silos
Shortage of data science
talent to analyze the data
and communicate insights¹⁰
01 02
74%
of banking providers believe
partnering with third parties
will be the best way for them
to access machine-learning
technologies11
1
Efma, Infosys-Finacle and Digital Banking Report, “Innovation in Retail Banking 2017,” Oct 2017,
https://thefinancialbrand.com/68280/innovation-banking-trends-repot-efma-digital-transformation/
2
Narrative Science and National Business Research Institute, “Outlook on Artificial Intelligence in the Enterprise 2016,” July 2016,
https://narrativescience.com/Resource-Library/PR/62-of-organizations-will-be-using-artificial-intelligence-ai-technologies-by-2018htt
ps://thefinancialbrand.com/63322/artificial-intelligence-ai-banking-big-data-analytics/.
³ Efma, Infosys-Finacle and Digital Banking Report, “Innovation in Retail Banking 2017,” Oct 2017,
https://thefinancialbrand.com/68280/innovation-banking-trends-repot-efma-digital-transformation/
⁴ Oracle, “The Era I Enterprise: Ready for Anything,” April 2016,
http://www.oracle.com/us/industries/oracle-era-ready-anything-2969053.pdf.
⁵ Digital Banking Report, “The Power of Personalization in Banking,” 2016,
https://www.digitalbankingreport.com/dbr/dbr242/.
⁶ Accenture Consulting, “2016 North America Consumer Digital Banking Survey,” 2016,
https://www.accenture.com/t20160609T222453__w__/us-en/_acnmedia/PDF-22/Accenture-2016-North-America-Consumer-Digita
l-Banking-Survey.pdf.
⁷ Jeffry Pilcher, The Financial Brand. “50 Facts Revealing Millennials’ Mindset and Myths About Money,”June 2015.
https://thefinancialbrand.com/52223/50-facts-about-millennials-and-money/
⁸ Digital Banking Report, “The Power of Personalization in Banking,” 2016,
https://www.digitalbankingreport.com/dbr/dbr242/.
⁹ Efma, Infosys-Finacle and Digital Banking Report, “Innovation in Retail Banking 2017,” Oct 2017,
https://thefinancialbrand.com/68280/innovation-banking-trends-repot-efma-digital-transformation/
10
Narrative Science and National Business Research Institute, “Outlook on Artificial Intelligence in the Enterprise 2016,” July 2016,
https://narrativescience.com/Resource-Library/PR/62-of-organizations-will-be-using-artificial-intelligence-ai-technologies-by-2018.
11
Efma, Infosys-Finacle and Digital Banking Report, “Innovation in Retail Banking 2017,” Oct 2017,
https://thefinancialbrand.com/68280/innovation-banking-trends-repot-efma-digital-transformation/