(PoV) How to Enable Hyper-Personalization When Onboarding a Bank Customer

Delivering a fully personalised card experience starts with onboarding. In our latest PoV, we look at 4 approaches on enabling consumers to attach the services and benefits to their card that matches their lifestyle

In our previous articles on hyper-personalisation of financial services products, we highlighted the many economic and customer benefits of flexible and personalisable products and services. The financial benefits of personalisation are beyond dispute and customers love personalisation as is demonstrated by the hyper growth of Big Tech and emerging FinTech players.

Delivery of a fully personalised digitally-enabled card product with services specific to a single consumer starts from the account opening process. This is a key moment of truth where banks can engage a consumer to create a card product (debit / credit) with services that are truly centred around their lifestyle and needs. The consumer experience needs to balance speed (i.e. digitally enabled and automated where possible) as well as creative relevance. Finding this balance can be tricky but is imperative as it results in consumers perceiving the product value 3x higher and with 30% higher engagement.

42% of consumers who want personalised products still want to be led by brands and choose from a selection of options

Deloitte

It is important for banks to have a set of pre-built card benefits and services options for consumers to choose from. Below are 4 options that provide pathways for delivering relevant personalisation during the onboarding process:

Enabling Choice of all Features and Benefits

Enabling consumers to choose each individual card feature is a good way to bridge the gap between a bank’s knowledge of the consumer vs what the consumer actually wants. Whilst it provides the ultimate level of choice, it requires careful orchestration given the sheer choice of options available. Best practice is to start with selecting the high-level benefit of the program (i.e. points vs cashback reward programs), and then moving to more granular benefits. An issuer can provide a number of recommended choices to ensure the consumer moves through the journey and finalises the account opening rapidly. Most importantly, reminding a consumer of the option to add and change benefits AFTER they have opened their account is critical to ensuring that there is no ‘buyer’s remorse.’

Enabling Choice of Bundles

To streamline the process further, banks can provide consumers pre-packaged bundles that are based on lifestyle needs. These for example may include ‘travel’, ‘eating out,’ ‘retail shopping’, etc. Getting these bundles right will require the bank to undertake an analysis of their consumer base to understand what ‘micro segments’ they serve and their specific needs. This will guide the build out of these bundles. Allowing consumers to choose more than one bundle (for a fee) is also possible and can ensure a more valuable card for the consumer. 

Personalised bundles based on Questionnaires

Taking inspiration from technology players such as Netflix, banks can recommend features and benefits to a consumer based on responses to a set of questions. These questions would ideally be about lifestyle and some of the goals the consumer is looking to achieve. This is particularly useful in a Post-Covid 19 world where many consumer’s benefits and natural choices may have changed during the pandemic. This can include the ability for consumers to choose benefits unique to their current needs at their current favourite merchant.

Let Customers Change & Add-On Benefits Post-Selection by Add-On Stores

Providing consumers an ability to ‘add on’ time-specific benefits or change their current benefits is a great way for banks to have an offering that is relevant at all times. Think of seasonal travel benefits, subscription benefits or premium merchant benefits. The other positive for a bank in utilising an ‘Add-On’ store is that these benefits – especially when merchant-funded – can provide the bank with another revenue source or a way to burn the balance-sheet liability of rewards points balances (if the add-ons can be purchased with rewards points).

68% of banks think they understand their customers extremely well, but less than half of banking consumers feel the same way, which highlights a major disconnect between them

Pega

Modern payment technology makes all of this possible and easy. As mentioned in our previous article on Personalizing Payment Products without breaking the Bank (Link), product personalization for your customers can be easily achieved today with the help of the right technology partners. The time is right for banks to revise their product plans and deliver truly differentiated payment products through personalisation.

In the next article, we will delve into how to be implement personalisation to maximize a consumer’s payment transaction experience.

Sources:
PEGA: https://www.pega.com/system/files/resources/2018-05/moments-of-truth-in-retail-banking-study.pdf
Harvard Business Review: https://hbr.org/resources/pdfs/comm/mastercard/TheAgeOfPersonalization.pdf

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