THE IMPORTANCE OF PERSONALIZATION

IN FINANCIAL SERVICES

As more companies provide truly personalized digital experiences, the more conspicuous it becomes

when a company does not.

This is true across industries.

Consumers don’t just compare their experiences

from bank to bank, insurance provider to insurance provider, brokerage firm to brokerage firm.

They compare all the experiences they have online.

Communicating with customers and prospects

with 1:1 personalized experiences is no longer

a “nice-to-have” for financial institutions.

It’s essential, as these stats show.

Financial Institutions Recognize the Value of

Personalization

78%of financial institutions

(FIs) increased investment in customer experience

innovation in 2017¹

50%

of all banking providers believe AI will have

a significant impact on their business model³

79%

of FIs consider it “very” or “extremely” important

to deliver guidance to customers in real time⁵

32%of financial services executives

say their organizations are using AI technologies such as predictive

analytics, recommendation engines, and voice recognition and response²

14%more revenue – what FIs

estimate they'd earn if they could successfully o�er customers an

individualized experience4

Consumers Expect Experiences Personalized in Real Time

40%

of consumers say that providing a personalized

service would change their loyalty to their bank⁶

Two in five millennials complain that the o�ers they receive from banks are not personalized⁷

But There is Work to Do

40%of all but the very largest

financial institutions consider themselves “static” (meaning

they o�er no personalization)⁸

50%

of FIs cite “legacy technology” as the main barrier to digital transformation⁹

Top two reasons FIs feel they cannot e�ectively leverage big data to

deliver better experiences:

The financial services industry is not immune to the trend – consumers are expecting personalized experiences across channels. The good news is that FIs are recognizing this trend and making strides to overcome internal

barriers to deliver personalization. But they still have work to do, and Evergage is here to help.

Data is too distributed and in silos

Shortage of data science talent to analyze the data

and communicate insights¹⁰

01 02

74%

of banking providers believe partnering with third parties will be the best way for them to access machine-learning

technologies11

1 Efma, Infosys-Finacle and Digital Banking Report, “Innovation in Retail Banking 2017,” Oct 2017,

https://thefinancialbrand.com/68280/innovation-banking-trends-repot-efma-digital-transformation/

2 Narrative Science and National Business Research Institute, “Outlook on Artificial Intelligence in the Enterprise 2016,” July 2016,

https://narrativescience.com/Resource-Library/PR/62-of-organizations-will-be-using-artificial-intelligence-ai-technologies-by-2018htt

ps://thefinancialbrand.com/63322/artificial-intelligence-ai-banking-big-data-analytics/.

³ Efma, Infosys-Finacle and Digital Banking Report, “Innovation in Retail Banking 2017,” Oct 2017,

https://thefinancialbrand.com/68280/innovation-banking-trends-repot-efma-digital-transformation/

⁴ Oracle, “The Era I Enterprise: Ready for Anything,” April 2016,

http://www.oracle.com/us/industries/oracle-era-ready-anything-2969053.pdf.

⁵ Digital Banking Report, “The Power of Personalization in Banking,” 2016,

https://www.digitalbankingreport.com/dbr/dbr242/.

⁶ Accenture Consulting, “2016 North America Consumer Digital Banking Survey,” 2016,

https://www.accenture.com/t20160609T222453__w__/us-en/_acnmedia/PDF-22/Accenture-2016-North-America-Consumer-Digita

l-Banking-Survey.pdf.

⁷ Je�ry Pilcher, The Financial Brand. “50 Facts Revealing Millennials’ Mindset and Myths About Money,”June 2015.

https://thefinancialbrand.com/52223/50-facts-about-millennials-and-money/

⁸ Digital Banking Report, “The Power of Personalization in Banking,” 2016,

https://www.digitalbankingreport.com/dbr/dbr242/.

⁹ Efma, Infosys-Finacle and Digital Banking Report, “Innovation in Retail Banking 2017,” Oct 2017,

https://thefinancialbrand.com/68280/innovation-banking-trends-repot-efma-digital-transformation/

10 Narrative Science and National Business Research Institute, “Outlook on Artificial Intelligence in the Enterprise 2016,” July 2016,

https://narrativescience.com/Resource-Library/PR/62-of-organizations-will-be-using-artificial-intelligence-ai-technologies-by-2018.

11 Efma, Infosys-Finacle and Digital Banking Report, “Innovation in Retail Banking 2017,” Oct 2017,

https://thefinancialbrand.com/68280/innovation-banking-trends-repot-efma-digital-transformation/