The Importance of Personalization for Financial Institutions

Cammy Perry Content Marketing Specialist Published 8 Dec 2022

Over the last few years, it has become clear that financial institutions need to find ways to enhance and modernize their customers’ experiences to remain competitive with one another.

Customers today expect to be able to bank from anywhere, at any time, digitally, and want to know that they will receive financial advice and guidance along their journey. To thrive in today’s market, your organization needs to offer your customers convenience, consistency, and personalization.

What Does Personalization Look Like in the Financial Services Industry?

Personalization aims to create an experience that is unique to individuals by providing them with information relevant to their current position and past experiences. When organizations use personalization, customers often feel their problems are being heard, which builds trust between the brand and the customer.

Personalization in finance and banking might include things like

  • Facial recognition or financial advice through their mobile apps
  • Digitally available financial reports
  • Product offerings that are relevant to their current wants and needs
  • Alerts about changes in their financial health

What are the Benefits of Personalization for Banks and Financial Institutions?

Customers have a lot of options when it comes to where to take their business. A personalized experience that provides information that can help them make sound decisions based on the current economy and their financial position can be a huge differentiator to encourage customers to pick you over a competitor.

In a study conducted by Forrester Consulting on behalf of Blend, financial institutions were asked what they felt were some of the benefits of delivering personalized experiences to customers. Of the responses, 0% said that they saw no benefit, and the main responses were:

  • Increased competitive advantage
  • Higher value to customers
  • Increased customer satisfaction
  • Increased customer retention
  • Enhanced customer experience
  • Better customer insights
  • More effective customer acquisition

Banks and financial institutions utilizing personalization are believed to see greater success in accomplishing their desired business outcomes.

Where Should You Start to Better Personalize Your Customers’ Journey?

As your organization begins to create better customer experiences through personalization, the first area of focus should be your company’s network. Without a strong network that can connect your customers, employees, and all of your different applications to one another, a personalization strategy will never work, no matter how good of a plan it is.

To learn more about what solutions can help you build a strong network infrastructure to support your customers and applications from anywhere, visit Extreme Networks.

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