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Last Updated : May 24, 2019 07:14 PM IST | Source: Moneycontrol.com

Data analytics drive a shift in customer experience for banks & fintechs

With an increasing number of customers engaging digitally, digital lenders are designing products specifically for the customers

Representative image
Representative image

As the relationship between customers and banking & financial services (FS) firms are changing from the stereotype face-to-face relationship to that of a digital one, the role of analytics is also changing and viewed on a larger scale in this sector. Banks and FS firms are undoubtedly improving the customer experience by analysing customer data and offering customisable services.

“Several banks have used analytics to improve customer experience, which is made easier today as the entire exchange between the customer and the company is digital – from consumption to payment. An increasing number of customers are engaging digitally, resulting in them creating a digital footprint. This helps digital lenders to design products specifically for the customer. For instance, based on the purchases made by a customer shopping online, the lending partner of the e-commerce portal can evaluate the purchase behaviour of the customer and make the most relevant offer in terms of loan & product bundle. Such digitally driven practises are still in a nascent stage. Retail companies have set the standard in this regard and have become reference points for others to follow,” says Tushar Garimalla - Chief Growth Officer, Capital Float.

Giving a more detailed preview regarding the entire analytics and customer experience, and how the process works, Jaya Vaidhyanathan, President, Bahwan CyberTek, says, “Banks are measuring increasing wallet share and profit per customer as a key metric for top-line growth. This means banks must combine data from multiple business lines to cross-sell or upsell other products. Data analytics is used to monitor their credit and debit card usage, movement in account balances, purchase of credit products, investments, to precisely achieve this, and are incentivizing customers for being profitable to the bank.


“For instance, banks have started taking a comprehensive view of a customer (Total Relationship Value) instead of looking at individual accounts, and hence we are seeing innovative pricing structures, like say, free fund transfers provided a certain account balance is maintained. This kind of comprehensive view can also go beyond banking, to cover insurance and equity investments held with bank subsidiaries/partners to improve the fee income of the bank.”

Dharmesh Kishore, AVP Data Platform, Innoviti Payment Solutions, explained the scenario from a fintech point of view and how they are moving forward keeping analytics in mind to improve the customer interaction experience. “Fintech companies are evolving and reshaping their business models towards being more customer-focused. Data analytics gives insights into many complex areas of customer’s spending patterns making it easy for banking firms to design personalised services catering to the needs of individual customer. These insights also pave ways to cross-sell products and services across domain and applications creating multiple touchpoints with the customers,” he added.
First Published on May 24, 2019 07:14 pm