How often do you go to the bank? By that I mean go into a branch and speak with a banker. I’m guessing not too often. Herein lies the problem for banks. How can they engage with their customers if they don’t have as much face to face contact as they used to?
The digital nature the banking industry has taken on in recent years is far from the end of banking as we know it. With your bank always at your fingertips and myriad mobile apps, you likely check your balances and transfer money more often and faster than ever before. While the personal relationships that retail banks were built on are starting to disintegrate, new ways of engaging with customers are being built in their place.
The most promising way forward that I’ve seen is when banks pull together the entire experience with advisory services that take it beyond net worth calculators. With the internet providing immediate access to a number of banks and other financial services, it is quite common to have assets spread out in a number of accounts, spanning several financial institutions. Combining it all to tell customers how much their assets are worth is incredibly useful for them. It will keep them from fiddling with a calculator and likely getting frustrated.
It might seem counterintuitive for a bank to give their customers easy access to information about their accounts at rival banks, but being helpful keeps them top of mind for upsells down the line.
A more involved way to shake up the old customer engagement model is to offer advisory services. It’s nice to have all your financial information in one place, but taking it to the next level means incorporating all of that data into a financial plan.
How “me” share could boost engagement
Personalization is key in modern banking. Customers want to have access to their accounts, but also want to know the best way forward for them in particular. Since customers are less likely to drop into a branch to ask questions, banks need to build that rapport digitally.
What if your bank offered a service that told you what your assets were worth, in a much more comprehensive way? That’s where “me” share comes in. Like a personal wealth index, this all-encompassing view of your monetary and non-monetary assets would make banking more meaningful than simply numbers on a screen. It could give you suggestions on how to improve your index, while also attaining the financial goals you have.
The “me” share is an index used to measure and compare the financial status, risks, and future trajectories of clients. Users are incentivized to periodically check how they’re doing and take actions to improve their share by changing insurance providers or investing in gold, for instance. It would provide consistent personal advice through the “me” share app. Giving clients information they can’t get anywhere else boosts engagement
Luckily banks and financial institutions should already have or at least have access to tools and algorithms to measure the variables that will go into this index. For example, banks could leverage the same instruments used in due diligence. Also, algorithms for analysis could be complemented by AI or machine learning scenarios to become a robo-advisory service.
Bottom line of “me” share
Customer engagement in retail banking has pivoted significantly. The preference for digital banking doesn’t have to spell disaster for the industry. In fact, with more opportunities to interact with customers online, successful banks will strategize now about how and when to best implement a digital “me” share program to grow engagement.
