Marketing is evolving. We are quickly going from a transactional way of doing business, to a relationship-based approach. Much of the current banking industry lacks the relationship-building methodologies that so many other industries have already adopted. This has been fine in the past when banking was a relatively protected industry with tons of barriers to entry, but as the world evolves, this is changing and they will need to get more competitive. The topics discussed here include - 1) Exactly where the banks are lacking in personalization and how much it is costing them. 2) 4 ways banks can rapidly enhance their personalization and improve engagement. 3) The roadmap banks should use to improve their personalization and start building real relationships with clients. 4) The 3 stages of banking personalization and how banks can move up to the highest level.

2. Personalization in Banking:
How to Build Relationships
Alyson Clarke, Principal Analyst March 19, 2020

3. 3
3© 2019 FORRESTER. REPRODUCTION PROHIBITED.
Personalization is an experience that uses
customer data and understanding to frame,
guide, extend, and enhance interactions
based on that person’s history, preferences,
context, and intent.

4. 4
4© 2019 FORRESTER. REPRODUCTION PROHIBITED.
When done right, personalization can create a
competitive advantage that can’t be replicated.

5. 5
5© 2019 FORRESTER. REPRODUCTION PROHIBITED.
Differentiation
Loyalty
Customer engagement

6. 6
6© 2019 FORRESTER. REPRODUCTION PROHIBITED.
Leverage technology to build 1:1 relationships that
are unique and can’t be replicated.
6© 2019 FORRESTER. REPRODUCTION PROHIBITED.

7. 7
7© 2019 FORRESTER. REPRODUCTION PROHIBITED.
Personalization is
like a relationship —
it has to be two-way.
Image source: Pexels

8. 8© 2020 Forrester. Reproduction Prohibited.
Personalization is a two-way street
Source: Forrester Research
Information
flow
Unknown
prospect
Basic
segmentation
Advanced
segmentation
1:1
Customer
Firm

9. Banks need to
stop thinking
like retailers.

10. 10
10© 2019 FORRESTER. REPRODUCTION PROHIBITED.
Banks should leverage technology to
personalize experiences for as many
customers as possible, across the lifecycle.

11. 11© 2020 Forrester. Reproduction Prohibited.
Source: Financial Services Firms Should Personalize Across The Lifecycle And On All Touchpoints Forrester report
Personalized site search
Personalized recommendations to help
prospects choose the right product or service
Personalized content, language,
and images on public sites
Cross-sell and upsell of products
is personalized based on a
customer’s situation and needsPersonalized content and functionality
Personalized offers
Personalized site search
Call center agent matching
“Next best interaction” and real-time
insights on the customer for
employees (e.g. via whisper agents)
Personalized onboarding
(e.g. messaging, tools,
personalized videos)
Real-time customer insights for
front-line employees
Language, content, and images
personalized in marketing offers
and communication
Personalized financial tips,
guidance, insights and advice
Personalized videos to simplify,
educate, and drive engagement.
Personalized pricing
Personalized videos to
encourage customers to renew
Personalized videos to simplify statements
and communications (e.g. mortgages,
annual review of financial plan)
Personalized videos to explain
personalized quotes before purchase
Interactive videos to guide
customers through their options

12. 12© 2020 Forrester. Reproduction Prohibited.
Leaders get closer to
their customers by
ensuring
personalization adds
value to the customer
INFORM
GUIDE
ADVISE
CARE
How will personalization add value to the customer?

13. 13
13© 2019 FORRESTER. REPRODUCTION PROHIBITED.
USAA is personalizing the mobile banking
experience
Source: USAA
INFORM
GUIDE
ADVISE

14. 14
14© 2019 FORRESTER. REPRODUCTION PROHIBITED.
USAA can also follow up on human interactions through
digital touchpoints
Source: USAA
INFORM
GUIDE

15. 15© 2020 Forrester. Reproduction Prohibited.
Barclays personalized lending video helps customers know
how much they could borrow
INFORM
GUIDE
ADVISE

16. 16
16© 2019 FORRESTER. REPRODUCTION PROHIBITED.
Huntington Bank gives a “Heads Up” on upcoming activity and
relevant information
INFORM
GUIDE
ADVISE
CARE

17. 17
17© 2019 FORRESTER. REPRODUCTION PROHIBITED.
BBVA offers personalized recommendations based on customer’s
financial health
INFORM
GUIDE
ADVISE
CARE

18. 18
18© 2019 FORRESTER. REPRODUCTION PROHIBITED.
Banks like Sberbank are deploying whisper agents (virtual assistants)
to help call center agents personalize interactions
INFORM
GUIDE
ADVISE

19. 19
19© 2018 FORRESTER. REPRODUCTION PROHIBITED.
BBVA also helps people plan for a baby – even if they aren’t
BBVA customers!
Source: BBVA website (Spain)

20. 20
20© 2019 FORRESTER. REPRODUCTION PROHIBITED.
Focus on customer outcomes.

21. 21© 2020 Forrester. Reproduction Prohibited.
Adopt design
thinking as a
common framework
to guide your
strategy
Source: How To Build A Better (Digital) Mousetrap Forrester report

22. 22
22© 2019 FORRESTER. REPRODUCTION PROHIBITED.
Determine what
your customers
care about.
Understand what
you know about
customers to create
dynamic profiles.
Learn customers’
privacy and brand
expectations.
Source: Forrester Research, Inc.

23. 23© 2020 Forrester. Reproduction Prohibited.
BBVA adopted a
design thinking
approach to drive its
personalization
program

24. 24
24© 2019 FORRESTER. REPRODUCTION PROHIBITED.
Use customer journeys to guide your personalization strategy
Source: Use Customer Journeys To Guide Your Digital Banking Strategy Forrester report

25. 25
25© 2019 FORRESTER. REPRODUCTION PROHIBITED.
Take a systematic approach to identify moments for
personalization
moments of truth
Welcomes
his first
child
Requests
and
compares
quotes
online
Calls
financial
professional
Schedules
medical
exam
Waits
Oneweek
Finalizes
and
makes
payment
Receives
quote and
reads
paperwork
Few
weeks
Calls to
check
on quote
for premium
and
coverage
Example: financial services
Where can personalization . . .
• . . . help inform the situation?
• . . . guide them to what they need?
• . . . extend their options to advise them of other things they may need?
• . . . enhance the experience to demonstrate you care about your customer?

26. 26© 2020 Forrester. Reproduction Prohibited.
Personalization
can strengthen
your relationships
with customers
1. Ensure personalization adds value to the
customer.
2. Personalize experiences at each stage of the
customer lifecycle.
3. Provide 1:1 experiences on all touchpoints.
4. Focus on moments that inform, guide, advise,
and/or shows you care.
5. Adopt design thinking to guide your
personalization strategy.

27. 27© 2020 Forrester. Reproduction Prohibited.
Old Banking is Dead!

28. 28© 2020 Forrester. Reproduction Prohibited.
Long Live Mobile Banking!

29. Your customers will be on Mobile and Web, and not in your Bank!
Reach them wherever they are with Intelligent Mobile Engagement
Mobile
Push
Web
Push
In-app
Messages
Email SMS Ad
Networks

30. MoEngage Enables Real-Time Unified Digital Communication Across Businesses
Mobile
Payments
Checking
& Savings
Bill
Payments
Loans
Investments
Credit Cards

31. 31
Give our Fintech CSM team a call for ideas and help
Ehren Maedge
VP North America
+1.650.302.3752
ehren@moengage.com

32. 32© 2020 Forrester. Reproduction Prohibited.
Thank You.
Alyson Clarke
Principal Analyst