Personalisation: Enriching Financial Services Customer Communications

The shift towards personalisation in customer communications is redefining the financial services industry, offering unprecedented opportunities to engage with customers more meaningfully.

In Episode 2 of our Digital Customer Communications podcast, we explore these opportunities with Ian Beestin, co-founder of Money Alive, a platform known for its innovative approach to video engagement.

Ian's insights into the transition from static to dynamic, more personalised customer communications are invaluable for any organisation looking to enhance its engagement strategies.

You can watch the episode below. ⬇️

The Power of Personalisation in Financial Services

Financial services have traditionally been seen as slow to adapt to new technologies, hampered by regulatory complexities.

However, the landscape is changing rapidly, driven by the necessity to meet customers where they are, both digitally and contextually.

A positive regulatory environment is encouraging companies to enrich their data and utilise it to enhance digital customer communications.

“Personalisation is about leveraging data not just to understand your customers, but to communicate with them in ways that are relevant, timely, and actionable.”

— Ian Beestin, Co-Founder, Money Alive

Personalisation not only boosts customer satisfaction but can help organisations comply with Consumer Duty, which requires them to ensure consumers fully understand the services they receive.

Open banking initiatives also enable third-party providers to access banking data for enrichment, offering relevant services to consumers.

The growing trend towards leveraging customer data for personalisation is further supported by the rise of Customer Data Platforms (CDPs)—systems that consolidate data from various sources to create unified customer profiles for effective communication.

The personalisation of customer communications is part of a larger shift towards digital services and customer experiences.

77% of financial institutions plan to increase investment in digital transformation over the next three years.

Data: The Foundation of Effective Personalisation

At the heart of any personalisation strategy is high-quality data.

As financial services firms prepare for initiatives like the pensions dashboard—a government-led project designed to provide individuals with online access to their various pension savings—there has never been a better time to get their data in shape.

“The pensions dashboard will be a transformative tool, not just in consolidating disparate data but in how it enables companies to innovate around that data.”

— Ian Beestin, Co-Founder, Money Alive

Advancements in digital customer communications often hinge on companies having their data standardised and organised—a necessity for the pensions dashboard programme.

The data requirements imposed by industry programmes like the pensions dashboard can bring companies closer to new innovations in more personalised, more dynamic customer communications.

As they consolidate their data, companies can create the capacity to streamline their communications, ensuring they deliver the right message at the right time to engage customers more effectively.

The influence of AI in this transformation cannot be overstated. A significant 89% of executives believe that AI-driven digital transformation will be the key driver of revenue growth for their organisations.

Overcoming Internal Challenges

Despite the clear benefits, companies often face challenges when adopting personalised communication technologies.

Vested interests, legacy systems, and concerns about disruption can stall progress on digital transformation initiatives.

Overcoming these barriers requires a committed focus on innovation, starting with leaders dedicating time and resources to explore and understand the potential for transformation.

“Setting aside time for innovation is crucial. This might mean reserving a day to step back from business as usual and focus on how things can be done differently.”

— Ian Beestin, Co-Founder, Money Alive

By prioritising innovation, leaders can be better prepared to navigate the risks and complexities of new technologies.

The external pressure of requirements such as the pensions dashboard can help leaders to rally change around innovation.

However, the pursuit of new technologies for more personalised communications can easily spiral—a considered, diligent, and focused approach is necessary to avoid organisational disruption.

The Role of Regulation in Driving Innovation

Regulatory frameworks play a critical role in enabling companies to innovate the customer experience.

“A supportive regulatory framework can actually drive companies to adopt more effective communication strategies.”

— Ian Beestin, Co-Founder, Money Alive

The Financial Conduct Authority (FCA) sets out guidance that organisations must rally around, using new technologies to ensure the best outcomes for customers.

Successful champions of digital solutions are using compliance requirements as a catalyst to rethink their data strategies, unlocking new opportunities for personalisation.

For instance, many organisations are leveraging the requirements set by Consumer Duty—particularly the mandate to ensure customers fully understand the services they receive—to revamp their communication strategies.

By reworking their data collection and processing methods, these organisations are gaining deeper customer insights, enabling them to deliver more tailored and effective communications that truly resonate with individual needs.

Of course, cybersecurity remains a top priority in regulation, with financial institutions increasingly investing in advanced security measures to protect customer data and maintain trust.

Practical Applications of Personalised Communications

Several practical examples illustrate how personalised communications can be implemented in financial services.

From video annual benefit statements that guide customers through their pensions to interactive experiences that help users make informed decisions, the possibilities are vast.

“Interactive tools, like our video canvases, not only present information clearly but also engage customers in a way that static PDFs never could. This not only enhances understanding but also drives the desired actions, whether it’s completing a form or updating personal details.”

— Ian Beestin, Co-Founder, Money Alive

The use of AI-powered virtual assistants and chatbots is enhancing customer service, focusing on increasing personalised recommendations and improving customer interactions.

In addition to AI and video canvases, other tools like personalised email campaigns, dynamic web content, and mobile apps are becoming crucial in delivering tailored experiences.

These tools are essential in creating a more dynamic and responsive customer communication environment.

Looking Ahead: The Future of Personalised Financial Services

As the financial services industry continues to evolve, the importance of personalisation in customer communications will only grow.

“The ability to deliver personalised, actionable insights will become a key differentiator for financial services companies. Those that embrace this shift will not only meet regulatory demands but also build stronger, more trusted relationships with their customers.”

— Ian Beestin, Co-Founder, Money Alive

There is a clear shift towards customer-centric strategies that prioritise personalised and seamless experiences.

This highlights the ongoing evolution of financial services towards more secure and efficient processes.

By focusing on the quality of data, dedicating time to innovation, and leveraging a supportive regulatory environment, financial services firms can create communication strategies that are both compliant and deeply resonant with their customers.

The future of customer communications in this sector is not just about keeping up with the times but about leading the charge in delivering truly personalised experiences.

References:

Digital Transformation and Customer Experience, 3Pillar Global, 2024

The Painful Challenges of Digital Transformation in Financial Services, EasySend, 2024

67% of Consumers Want Their Bank to be More Sustainable, The FinTech Times, 2024

The Customer Experience Outlook in 2024: Personalisation and AI to Bring FinServs Closer to Consumer, Finextra, 2024

Challenges of Digital Transformation in Financial Services, InfoBest, 2024

Hyper-Personalisation in Banking, PwC, 2024

The Value of Digital Transformation, Harvard Business Review, 2023

Digital Transformation in Financial Services Statistics, WorldMetrics, 2024

Digital Transformation in Financial Services, FuturByte, 2024

Digital Transformation in Financial Services, MDBSC, 2024

Reviewed By:

Sabrina McClune, 29.08.24

Sam Kendall, 29.08.24