SPONSORED CONTENT PRESENTED BY Q2 SOFTWARE
By Jaime Domiguez
Principal Product Marketer, Q2
The message is clear: Consumers want personalized banking.
Research supporting the personalization imperative is prevalent. A survey conducted by The Harris Poll and commissioned by Q2, for example, found that expectations are common across generations. From Gen X to baby boomers, people want personalization, and they don’t mind if you use their data to deliver it.
According to The Harris Poll findings, consumer trust in banks and credit unions is high, regardless of age. That translates into 66% of survey respondents, across generations, indicating they are comfortable with their financial institutions using personal data—and even AI—to give them more relevant services. It signals a significant opportunity to build customized digital experiences that meet modern expectations and capture much needed loyalty.
Simply put: People are different, and they expect you to treat them that way.
Roadblocks on the path to personalization
Get personalization right in your digital banking experiences, and you’ll . But if your personalization strategy stops at occasional targeted ads, you haven’t gone far enough. Differentiating your offering takes curated offers, tools, and education that evolves with people throughout their life journeys.
The power of personalization is not new. Trailblazing consumer brands like Amazon, Netflix, and Spotify paved the way—and have mastered execution over the last decade.
By now, most financial institutions understand the value of personalization and have taken steps toward it. Many, though, have not yet gone far enough. That’s because there have been significant challenges to executing the level of digital personalization necessary to achieve brand differentiation, win lasting loyalty, and grow in today’s hyper-competitive markets.
This year, I’ve spoken to dozens of bank and credit union leaders about growth challenges and successes. One reality is that account holders’ reliance on digital banking and less frequent use of branches requires a shift in how financial institutions connect and get to know people.
Change is never easy. Fortunately, though, with the right technology, partnerships and approach, digital banking presents a new opportunity to get personal. You can now build stronger, better relationships digitally—and at scale—through what we call
Data as differentiator
Dynamic personal experiences use data and AI to curate relevant experiences that evolve with people.
Dynamic personal experiences transform commodity consumer banking transactions into differentiating consumer engagement. When you get personal and continually deliver the next best digital experience to your account holders, relationships strengthen and endure. You build loyalty that keeps people—and their deposits—solidly with your institution, not chasing marginally better interest rates from competitors.
Dynamic personal experiences start with data insights used to know and understand account holders at the moments that matter most. You then have the opportunity to provide services that improve people’s lives in ways your competitors can’t.
According to Q2 user data, people log into digital banking more than 20 times per month. That’s 20 opportunities for you to get to know them through their digital behavior. With data insights, you can predict needs and deliver the most relevant mix of precisely timed financial solutions. More than targeted offers alone, this is loyalty-building help when people need it.
A framework and solutions to continually know, serve, and grow consumer relationships
Leveraging data is the first phase of a powerful framework to know, serve, and grow your consumer banking relationships. Every phase of the framework helps build relationships for life. Each is an essential and interdependent stage of a continual process.
Earlier this year, Q2 introduced , a comprehensive that uses data, AI, and fintech partnerships to deliver dynamic personal experiences. All Q2 Engage solutions support the know, serve, grow framework to deliver the next best experiences throughout account holders’ journeys.
Here’s how it works:
Know: This stage involves using data and AI to understand the individual needs of account holders. Every digital interaction provides a window into a life experience. For example, patterns of negative balances could indicate financial trouble, while frequent transfers to external accounts might suggest investment services opportunities.
Q2 Engage’s Audience Builder makes transforming raw data into actionable insights simple. With over 450 behavioral traits, you can easily create targeted groups to receive specific content. By identifying and focusing on your most valuable audiences with relevant offerings, you begin to plant the seeds of loyalty.
Serve: Once you understand needs, you can offer relevant solutions on personalized landing pages. Q2 Experience Builder allows financial institutions to design the landing page with their unique branding and curate content that resonates with the right people, at the right time. This ensures that each defined audience sees what is relevant to them, generating higher adoption for you.
Grow: The third stage of the framework focuses on deepening relationships by offering personalized solutions beyond traditional banking. Q2 Innovation Studio and its fintech partner ecosystem give you access to more than 150 pre-integrated solutions—from credit monitoring to financial literacy to invoicing tools for small business. You can also leverage the robust Q2 SDK and API development options to build your own specialized solutions.
Bundled solutions quickly deliver deep sets of offerings for the niche groups most important to your strategic goals, while driving non-interest income.
Personalization in practice
Yes, digital banking is more essential than ever. But it doesn’t have to replace the personal relationships you’ve traditionally relied on to differentiate. Done right, dynamic personal experiences can transform your digital banking into your brand differentiator—and build lifetime relationships.
Our new white paper, Q2 Engage: Building Lifetime Consumer Relationships With Dynamic Personal Experiences, provides more details on how the know, serve, grow framework and Q2 Engage solutions can help. It includes the real-world personalization practices of one financial institution already seeing measurable results, plus next steps on the journey.
Download the white paper today to understand how to get started differentiating your digital banking and achieving your strategic goals through any economic or political shift that lies ahead.
