This silo-ing of data could be down to any number of reasons. It could be because banks want to protect customer privacy and avoid hefty fines for breaking the rules. It might be because they have legacy systems that trillions of dollars pass through every day, making every change a pretty significant (not to mention high-risk) feat. Or it could be down to poor data governance and a lack of a single, central repository for their data.
The more disparate the data sources, the harder it is to get a 360-degree view of the customer. This makes it more difficult for banks to connect with their customers. After all, once someone’s received a ‘personalised’ mortgage offer for the fifth time with no intention of buying, you wouldn’t blame them for thinking their bank might not be right for them.
If instead of storing data in siloes, banks can combine this data to get a comprehensive view of each individual customer (e.g. their age, their lifestyle, their interests and the stage they are at in life), they’ll be in a much better position to offer personalised services, nurture customer relations and build trust. It’ll not only allow them to compete more effectively with new challenger banks, but explore innovative and exclusive services that younger banks can’t offer.
End of Round 1: Traditional banks can give themselves the edge over challengers with a centralised, single source of data.
Round 2: Run-of-the-mill banking VS a memorable customer experience
Retail banks need to find ways to retain their customers so that they don’t flock to glossy, new contenders – but to do this they need to find ways to appeal to customers ready to make the jump. The only way to do that is to have a strong, clear view of customer data that facilitates deeper analysis and targeted marketing.