Behavioral data, on the other hand, is non-transactional and provides insight into one's customers' spending habits, needs, and desires. This information includes anecdotal experiences and touchpoints within a company.
Fremont, CA: Because of the prevalence of digital channels, financial institutions now have greater access to banking data that can be utilized to attract and retain customers. That's a plus, but according to CSI's 2021 Banking Priorities Survey, while many banks and credit unions consider efficient customer data use to be a top strategic priority, most rate themselves as average or poor at actually utilizing big data today.
Let’s explore the fundamental steps leading to an enhanced customer experience.
Connecting the Dots with Data
When it comes to data, the adage "a picture is worth a thousand words" could not be more accurate. Sadly, many financial institutions divide data across departments, and this segmentation only tells a portion of the customer story. The value of an institution's data, on the other hand, is immediately maximized by connecting data from each department to see the big picture.
To provide a complete picture of the customer journey, a data expert should understand one's institution's entire data set and use analytics tools. While department heads will depend on this expert's knowledge, a bank's data will always be larger than any one person's. As a result, a successful data strategy should include nearly every department within a financial institution in order to give valuable feedback that helps shape the institution's strategic vision.
Evaluating an Institution’s Data Segmentation
There are two main types of segmentation to consider: transactional data and behavioral data.
Without a doubt, transactional data is the most comprehensive set of intelligence available to any financial institution. It contains loan balances, the customer information file (CIF), account balances, and other banking-related information. This information is increasingly being collected through digital channels such as mobile banking apps, digital loan applications, and ATMs, as well as in-person transactions.
Behavioral data, on the other hand, is non-transactional and provides insight into one's customers' spending habits, needs, and desires. This information includes anecdotal experiences and touchpoints within a company. Behavioral data is collected by a bank's customer relationship management (CRM) platform or through third-party integrations.
