Hyper-personalization in banking. IT Solutions

Do you know what makes a customer choose a particular bank these days? A credit offer, an attractive interest rate, or friendly terms and conditions are just the beginning. Consider the points of contact between the customer and the bank – where does communication most often occur?  It is no longer a bank branch or a call center. For an increasing number of users, the mobile app becomes the center of the relationship with the bank. Therefore, it must be convenient, reliable, functional, and… personalized. That is why hyper-personalization in banking is increasingly determining the competitive advantage in the industry. So, how to achieve it? Learn our tips and case studies.

Hyper-personalization in banking. So what exactly is hyper-personalization?

Personalization in banking no longer surprises us so much – quite the opposite. We often expect it as customers; it has become a certain standard. We know very well that customers expect messages tailored to their behavior, purchase history, and needs.

Whereas hyper-personalization goes a step further. First, it refines the assumptions of personalization and simply implements them more precisely and accurately. Secondly, it uses a combination of multiple modern technologies not only to respond to the user’s needs, but also to predict them. And as a result, offer him exactly what he needs before he even asks for it. 

How does personalization work in banking at the application level?

Let’s look at how personalization and hyper-personalization can be implemented with the help of IT using a banking application as an example. At the functional level, such an application collects data about the user and his interactions: when he logs into the system, what functions he uses, what transactions he performs most often, and where he is. On this basis, it proposes:

• contextual notifications (e.g., a reminder to pay utilities when the system notices that the user usually does so on the 15th of the month),
• offers that are tailored to expenses (e.g., offering a better exchange rate for frequent currency conversions),
• service recommendations (e.g., a reminder of a preferential loan opportunity).

Modern IT in banking? We know how to do it

At j‑labs, fintech projects are an everyday occurrence for us. One of our clients decided to create a native mobile application for iOS and Android. The project involved full customization for the specifics of each operating system to ensure maximum performance, access to device features (e.g., biometrics, location), better integration with the OS, or, finally, the possibility of quick updates. As you can see, creating an environment that is as customized as possible to the user’s lifestyle was a priority.

You can read more on the case study page Creating a mobile application that allows you to open a bank account in the location of your choice.

Hyper-personalization in banking. Market trends and user requirements

According to the GFT Banking Disruption Index, more than half of the users surveyed considered the ease of use of a banking application to be absolutely crucial when choosing a bank. Moreover, 22% of respondents already expect advanced features such as digital wallets, account sharing, and smart budget management. And hyper-personalization can provide this.

Poles are also increasingly willing to use additional services in mobile banking: shopping (53%), utility bills (35%), or currency exchange (29%). Interestingly, as many as 57% are willing to pay for such conveniences, but only if they feel real added value. And it takes a team of experienced IT professionals to implement these enhancements well.

What does the future of hyper-personalization look like? Open banking and new regulations

It is worth mentioning that the dynamic development of IT in banking cannot take place separate from legal changes. Upcoming EU regulations – PSD3 and PSR – are expected to facilitate the integration of systems, the development of APIs, and the increase of the transparency of operations, thus ultimately benefiting both consumers and businesses.

As you can see, the modern customer wants the bank to know their needs and respond quickly and accurately. That’s why it’s worth investing in native applications, which will implement flexible, platform- and user-specific IT solutions, the norm. At j‑labs, specialists are waiting to bring your ideas to life efficiently. You have the goal – we have the solutions. 

If you need experienced developers with whom your project will gain momentum, contact us and discuss the opportunities offered by outsourcing IT projects and IT specialists.