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Banking right in a code halo world

Jayajyoti Sengupta, Vice President and Head of APAC, Cognizant | Jan. 26, 2016
For banks, getting to know customers cannot be a matter of speculation any more as having knowledge on their customers could help set them apart from their competitors, says Jayajyoti Sengupta of Cognizant.

This vendor-written piece has been edited by Executive Networks Media to eliminate product promotion, but readers should note it will likely favour the submitter's approach.

Cognizant Head
Jayajyoti Sengupta, Vice President and Head of APAC, Cognizant

Customer experience is the new buzzword as organisations worldwide look for ways to improve their service and differentiate themselves. The banking world is no exception. Banks can no longer afford to guesstimate customer preferences-that is expensive as well as ineffective. Instead, all banks need to do is turn to the wealth of digital information that surrounds their customers.

Increasingly, every digital click, swipe, "like", buy, comment and search produces a unique virtual identity around every individual-a Code Halo-that offers unprecedented insight into customers' behavior, preferences and needs. By tapping into and analysing this data, banks can understand their customers better, react faster when needed, and anticipate their future requirements. A recent survey by FICO indicates that in the deposits business alone, for example, banks in Asia Pacific can deliver more than 20 percent additional revenue by using analytics.

Consumers' digital lives are rewriting the rules of banking. Their accent is on personalised options-lots of them-and they want them now. This is where new data modeling and predictive techniques hold tremendous promise. By helping banks create insightful digital strategies, these technologies can enable them to deliver more personalized customer experiences.

A Cisco Systems' study suggests that as many as 70 percent of bank customers are happy to reciprocate to greater personalisation or better service by divulging important personal information. Clearly, new digital channels require fresh, new and innovative ideas-such as presenting context-based offers to customers at their preferred point of consumption, or using geolocation services to generate custom offers. At the heart of these digital channels lies a new value proposition underpinned by free exchange of information between banks and customers.

Converting customer journey maps to business results
Understanding customers is the first step in tailoring products and services to customers' needs and wants. In today's context, the use of data techniques is key. The creation of customer personas-detailed, multi-dimensional representations of customers and prospects-is instrumental in recognizing customers' motivations and propensities.

In addition to customer personas, customer journey maps allow organisations to walk in their shoes. These maps provide valuable information as it traces customers' steps as they travel through key banking activities, such as opening accounts, exploring additional products and services, and resolving problems. With the big picture and banking processes deconstructed from the outside in, organizations are now able to experience and capture the thoughts and feelings of being a customer.

Without traveling through a customer's journey map, banks can merely guess the routes that consumers follow. For them, this frequently leads to the realisation that the reality is quite different from what they'd imagined. As a result, barriers become apparent and disappointments arise. It is therefore no surprise that for many banks, journey maps are eye-openers. As it turns out, the customer journey is far less linear than organizations realize, requiring customers to switch channels for both positive and negative reasons.

 

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