Imagine a scenario where, your customer is looking to purchase a house, while you inadvertently send across emails of FD’s or other deposit options? How do you think this will impact your banking business? Will this fulfil the need of the customer? No, right? There are only a few major financial decision-making moments in a customer’s life like purchasing a home, car, etc. Banks have to reach out at the exact moment when the customers are making such major financial decisions. In the above scenario, the customer would prefer not to discuss the loan process at all and hence, you might end up losing a potential lead for your bank. Why does this happen? It is due to lack of customer intelligence. Accurate analysis and strategies play a quintessential role in Banking and financial sector. A small mishap might lead to greater loss than one could anticipate.

How can banks understand what customer requirements are? How can banks provide services that are customer-centric? Well, this has been a problem in the past but thanks to customer analytics, banks are slowly personalizing their services to suit the customer’s need.

In order to maintain customer relationship, it becomes necessary for every bank to opt for customer analytics. Customer analytics or customer intelligence provides real-time, accurate inputs, which aids in understanding customer needs. Most banks are moving towards digitalization and accurate customer analytics acts as an accelerator in this process. Another step up in customer analytics is with neobanks.

Neobanks and Customer Analytics

With neobanks, customer analytics is easier as the data is completely cloud-based. Therefore, from fetching the data to processing it, analysis becomes easier and accurate. Neobanks are slowly taking the banking sector to the next level with multiple advantages like faster customer onboarding, 24/7 customer support, budget-friendly services, etc. With customer analytics, neobanks helps to enhance customer relationship.

Why Customer Analytics?

Customer analytics in the banking industry makes the services more customer-centric and organized hence, increases the overall efficiency of the system.

Here are some reasons why customer analytics is essential:

1. In-depth Customer Insights
To meet customer requirements, banks must first understand their customers. That is where customer analytics proves beneficial as it provides accurate and real-time customer insights.

2. Smart Marketing Strategy
To achieve maximum target, banks have to understand when and what needs to be promoted. The campaigns have to be in sync with what the customer needs. Customer analytics ensures this with inputs for smart marketing strategies that can attract customers of the target segment.

3. Risk Analysis
Risk analysis is highly important when it comes to customers. Banks should continuously check for any kind of risk factor surrounding the customers. Therefore, by using customer analytics, banks can identify any kind of risks well in advance.

In the financial year 2018-19, over 3,766 fraud cases have been reported in India which estimated up to Rs. 71,500/- crore.

4. Improve Customer Experience
With precise customer insights, right marketing strategy, and reduced risks, banks can have an efficient system running which has the potential to enhance overall customer experience.

5. Smarter Business Strategy
As competition rises, customer analytics help banks to enhance their quality of services by providing analysis of trending technologies. It also helps to set an organized banking structure by analyzing the necessary tools and services.

What customer analytics does in digital banking?

Here are some areas where customer analytics proves its worth:

1. Customer Onboarding
There are many cases when customers with good credit scores have also caused credit risks for the banks. It can be due to several reasons some of them include fake data, recommendations from a higher authority, etc. Nevertheless, to reduce such cases of credit risks, customer analytics is used. With plenty of data like the history of the borrower, credit score, salary and other sources of income, customer analytics provides you with a comprehensive list of attributes about your potential customers.

Apart from that, customer analytics helps with faster and accurate background verification, provide insights on customer requirements using past experiences. With these insights, it also provides an opportunity to personalize the onboarding experience thereby, enhancing customer traction.

2. Customer Relationship
What makes any bank customer-friendly is its approach towards customers. In order to manage the customer relationship, customer analytics helps to estimate the customer’s lifetime value, thereby evaluating the likeliness to land in a fraudulent case. It also ensures
overall profit analysis of the customer’s worth to the bank. It provides essential analysis to help reduce customer loss. According to McKinsey, this European bank reduced its loss of customers with customer analytics by 15%.

3. Customer Retention
To stay in the race of providing value-based services to the customers, customer analytics can help identify potential service issues that may lead to customers loss. It also helps to enhance customer engagement by personalizing the application. For example, customer analytics provides a report on customer expenses and potential savings. The report will consist of the customer’s daily expenses and income. It also suggests areas where savings are possible.

A takeaway

We, at Aspire Systems, understand the need for customer analytics and to ensure our neobank services are efficient, fast, and long-lasting, we help to build a strong customer analytics platform. With our technical expertise and constant check on the technical trend, we can guarantee that your neobank will have effective cloud-based customer analytics.

Aishwarya Iyyengar

Aishwarya was once a Quality Assurance Engineer then moved to Oracle SQL Development. But her love for writing shifted her to the world of Content Marketing and she hasn’t looked back since then. Her interest ranges from food topics to trending technologies. She loves reading books and her favourite genre is Mythological Fiction. Apart from that, she is a South Indian filter coffee lover.