Tech mahindra
Tech mahindra

Contextual Banking - The next frontier in customer engagement

Posted by: Kanwar Bir Singh On April 07, 2017 11:16 AM facebook linked in twitter

Banks face a constant challenge in gaining and retaining their customers, and in order to retain, they pursue them with their best rates, defer charges and offer customized treatment, but it is not possible to make such offers to every single customer as it cuts down on bank’s profitability.

As per the statistics, Bank-branch walk-ins have halved over last four years and will continue to decline with the increasing growth in Social Media. We are increasingly observing widening of the ‘Digital Divide’ between Customers and Banks and customers are ahead on the Digital Curve. Banks have understood that likes, tweets, shares do matter to engage with the young generation. Social media allows banks to connect with their customers in a completely new manner to meet demands of the customers, Business wants, and to deliver Channel related offerings at faster pace with high quality and low cost, with new technologies.

It is critical for banks to consider data from activities across all channels and interactions. Whether it is data from customers’ mobile phones, tablets, ATMs, their online banking or call centre interactions, or experiences at the branch, banks must create a unified vision of data across their organization.

Contextual banking will emerge as the winning banking model. It is a world of seamless banking where financial offers come to the customers at the place and time of need. In addition to allowing banks to offer regular promotions, Contextual offers present the opportunity to strengthen consumer relationships through cross selling or up selling. For instance, a bank could automatically extend a customer’s credit limit or cover an overdraft when the customer’s account balance cannot cover a purchase, or the customer has exceeded the limit on their bank credit card.

Tech Mahindra’s Smart Offer platform is a Big Data Analytics based platform for generating personalized offers to customers. It combines the power of external (Social and Local data) and internal data (both structure & unstructured data) of an enterprise together with intelligent algorithms to generate right choices / offers for customers and analytics for right targeting.

Our 360 degree Big Data Analytics provides guided choices using customer data spread across and leveraging:

  • Multiple external data sources that correlate product preference across categories
  • Affinity maps that correlate customers and their preferences
  • Higher offer acceptance rate
  • 3rd party aggregated usage data such as surveys, syndicated data from vendors, reports, etc.
  • Public data such as news, directories, social networking and review data, etc.

Once this data is compiled and overlaid on transaction data, we are able to derive customer centric taste metric and offer relevant & personalised offers at the right time, to the right customer, at right place through right channel.

About the Author

Kanwar Bir Singh, Sr. Business Consultant-Banking

Kanwar Bir Singh, is deeply fascinated by the business implications of digital technologies in Banking and work extensively with Fintechs. A coffee lover, he loved to be challenged in dribbling by 5 years old son.

Tags: DAVID, Connected Industries
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