Why Traditional Banks Are Struggling to Get Customer 360-Degree View
In today’s digital era, customer data is a goldmine of valuable insights that can drive business growth and enhance customer experiences. Customers today are increasingly moving to digital channels. More and more digital options are available to the customer, and growing demands by them make this journey increasingly complex. To simplify this journey for your bank, start by improving your understanding of your customers.
To understand customers better, banks need a holistic and unified picture of a customer’s interactions, transactions, preferences, and behavior. However, many traditional banks need help obtaining a comprehensive customer 360 view.
Customer data is generated at every touchpoint, from online transactions to in-person interactions. And banks can now quickly process and analyze vast amounts of data in real time by leveraging AI and machine learning. But the real challenge lies in consolidating this information, often scattered across multiple systems and sources. The siloed nature of data leads to fragmented customer views, hindering banks from making well-informed decisions.
Challenges of Developing a True 360-Degree View of Your Customers
Legacy systems and siloed data
One of the primary obstacles faced by traditional banks is the presence of legacy systems and disparate data sources. Over the years, banks have accumulated numerous technology platforms and databases. The lack of a unified system results in data silos. Customer information is scattered across different systems, making it difficult to obtain a cohesive view of each customer.
Inadequate data integration
Even when banks attempt to consolidate data from various sources, the data integration process can be complex and time-consuming. Integrating data from legacy systems with multiple technology partners, such as mobile apps, online banking, CRM, and other systems, poses significant challenges. Incomplete data integration can lead to fragmented customer views, hampering banks’ ability to make informed decisions.
Data privacy and regulatory concerns
Banks handle vast amounts of sensitive customer data, raising concerns about data privacy and regulatory compliance. Stringent data protection laws and regulations necessitate careful handling of customer information. Ensuring data security while consolidating and utilizing customer data becomes a complex balancing act for banks.
Limited technology and expertise
Many traditional banks lack the cutting-edge technology and expertise required to harness the full potential of customer data. The expertise in data analytics, AI, and machine learning that is essential for deriving actionable insights may be limited within small or traditional banking structures.
Obtaining a customer 360 view is a significant challenge faced by most traditional banks today. The impact of this struggle is far-reaching – affecting personalization efforts, cross-selling opportunities, customer service efficiency, and overall competitiveness. To remain relevant and successful in the evolving banking landscape, traditional banks must prioritize data integration, invest in modern technology, and foster a culture of data-driven decision-making.
A complete customer 360 view is essential for meeting customer expectations and driving business growth in the digital age. Take a step towards breaking down data siloes and unlock the true potential of your customer data.
Posted on Aug-07-2021