How banks should use data in 2023 to help customers improve financial health

In 2023, customer satisfaction remains the bottom line in banking, and providing high-quality customer service can set a bank apart from competitors. Knowing how to use data will be vital in getting this right and increasing customer satisfaction by helping them to financial health. Banks are there to service customers; therefore, it makes sense to put the customer at the center of their strategies.

With proper data analysis tools, banks can leverage their intimate knowledge of their customers to help them save and spend all year round. Brick-and-mortar institutions of yesteryear continue to support much of our economic systems. However, the combination of finance and technology (fintech) has created multiple new pathways to connect with customers—and provide them with improved and personally tailored service offerings as a result.

At BOND.AI, our AI-powered Empathy Engine® is what we use to put customers back at the heart of banking. Using chatbot technology, we meet customers where they are: Online. And create a space for intimate conversations that allow banks to access contextual data from which they can build a holistic picture of their customers. Using this real-time data, banks can more accurately provide relevant products and services as a result.

So how can banks leverage data to help their customers to financial health in 2023?

Partner up with fintechs

Used correctly, data can aid banks in forming more efficient and effective business strategies, but where to get this data remains a question. Leveraging digital opportunities means banks can partner with fintechs to reach employers of all kinds and gain more customers. Rather than viewing fintech as a threat, banks can take advantage of the tools made available by the industry to collect higher-quality data to inform their operations better.

The BOND Network is a prime example of how our financial systems can be strengthened by working together. Alone, a traditional brick-and-mortar bank might have a large customer base but lack the communication tools necessary to truly understand each individual’s unique needs. For many struggling with finances, visiting an institution might also be difficult, costly, and intimidating. When banks instead build on the trust people have in their employers, they can benefit from an existing relationship to access new customers and the familiarity already there.

Partnering with employers and using artificial intelligence (AI) tools to quickly foster a rapport with new customers gives banks more chances to provide pre-emptive suggestions for financial health. Using a chatbot to discover whether an individual wants to start a family or travel the world, for instance, provides the kind of holistic data that banks can use to tailor their products and services more accurately. As a result, customers’ financial health is improved as they are being assisted in navigating our banking systems.

Know Thy Customer

When banks utilize AI tools like our Empathy Engine® chatbot to talk directly with customers, it makes it easier to understand the contextual lifestyle changes customers go through. This data-oriented communication channel opens fresh avenues for growth as banks can offer customers existing products, as well as use the information collected to develop new ones.

For example, if banks know more about their customers and spending habits, they can give a loan accordingly or find them the most optimal saving account options. If customers spend a lot of money abroad, they can offer services that provide better exchange rates. In this instance, customers can avoid overspending and losing money while traveling, and the bank has a more informed, less risky customer as a result.

Chatbot technology means customers can talk intimately and directly to their bank in a way that traditional financial institutions struggle with. The image of a stern bank manager is hard to overcome, but when customer relationships are not prioritized, a wealth of valuable insights is missed out on. While the wealthy asset class might be who a traditional bank is more used to catering to, chatbot technology means banks can offer this type of high-quality customer service at scale.

Data allows banks to gain insight into individual spending habits and collate this information to see broader economic patterns. Leveraging these data insights can improve customer service as banks can offer recommendations based on current spending and circumstances, in addition to helping individuals better plan for the future. At the same time, these insights can open strategic pathways to target markets and more strategic business opportunities for banks.

If you’re a bank looking to learn more about your customers, click here to find out more!