Quadrant Knowledge Solutions Market Insights research provides detailed insights on the impact of hyper-personalization-driven contextual banking on the digital banking experience.
Banks have shifted their focus from having a physical presence to establishing a digital presence owing to the advent of technologies and digitalization. Adoption of innovative technologies for enhanced product and service offerings has become a necessity in this drive for digital presence due to emerging competition from new entrants. Achieving contextual banking driven by hyper-personalization can be a challenging task, but it is essential to improve customer loyalty as well as revenue and enhance overall customer experience.
Hyper-personalized contextual banking backed by context-aware results is the process of tailoring banking products and services by understanding customers’ unique circumstances and preferences. In contrast to personalization, hyper-personalization utilizes real-time customer data and behavioral data. Hyper-personalized driven contextual banking leverages historical transactional data and real-time data along with analytical tools to recommend specific solutions and advice such as identification of shortcomings in the funds required to make an upcoming payment or for a potential purchase while simultaneously providing remedy/financing options for the same.
According to Nehan Jain, Analyst at Quadrant Knowledge Solutions, “Banks are keen on improving their digital banking operation by offering enhanced customer experience via incorporation of contextual banking driven by hyper-personalization. Enabling hyper-personalized customer experience provides various benefits that include helping banks to build stronger relationships with their customers, recommending relevant financial products and services that drive up operational efficiency through STP, and improving upselling and cross-selling. Adoption of emerging technologies like Artificial Intelligence (AI), Machine learning (ML), and big data will assist banks in improving customer experience by analyzing and finding patterns in customer behavior and preferences to offer products and services that meet customer’s specific needs.”
Table of Contents
- Banking Experience
- Scenario depicting the impact of contextual banking on customer experience
- Roadmap to realize the potential of contextual banking strategy
- Achieving contextual banking
- Conclusion
Key Takeaways
- Hyper-personalization is a key factor driving exclusive customer experience with the help of data-driven insights.
- Maximizing the potential of hyper-personalized customer experience by adopting various contextual banking strategies.
- Implementation of AI/ML models along with big data analytics to analyse customer behavior and preferences resulting in personalized recommendations.
- Illustration showcasing the impact of contextual banking driven by hyper-personalization on customer experience
This Market Insight is a part of Quadrant’s BFSI practice. Also, for accessing our SPARK Matrix: Digital Banking Platform research report kindly reach out tormehar@Quadrant-Solutions.com.
Author: Nehan Jain, Analyst at Quadrant Knowledge Solutions Divya Baranawal, VP Research and Principal Analyst at Quadrant Knowledge Solutions
