Financial Services Companies Focus on Delivering a Better Customer Experience

As I conduct more interviews with IT professionals, it’s clear financial services companies (banks, brokers and insurance) are investing a lot of money and resources into leveraging data to provide a better customer experience.

As I conduct more interviews with IT professionals, it’s clear financial services companies (banks, brokers and insurance) are investing a lot of money and resources into leveraging data to provide a better customer experience.

Better late than never. Banks have long had a plethora of information about clients; whereby, they should have been able to suggest products and anticipate needs based on life events (college, first job, marriage, home, children, job change, retirement, etc.). Unfortunately, the data was in silos and they were not taking a holistic view of their customers.

Slowly but surely, this is changing as:

  • Rocket Mortgage enables customers to get approval for a mortgage or an equity line of credit in minutes.
  • Square enables sellers to process credit card transactions via smartphones or tablets.
  • Mint provides free, web-based financial management software.
  • Robinhood provides zero-fee stock trading.
  • Personal Capital provides online financial advice, personal wealth management and algorithmic trading, for much less than a traditional broker.

These companies are providing a seamless user experience (UX) across a multi-platform and multi-device landscape. They’re providing real-time information of value to educate customers and prospects. In a recent study, Oracle found that 80% of consumers are accessing their financial institution digitally.

Several banks have automated their loan processing so they are able to get more accurate and complete information upfront and provide loan approval the same day, rather than in 30 or 45 days. The process is better for the financial institution, as well as the customer.

But Are Traditional Financial Institutions Too Late?

After having moved half of my investment portfolio to the algorithmic trading arm of Edward Jones, I decided to move it all to Personal Capital, the algorithmic trading arm of Pershing.

As with most things, I believe we will see a range of activity and acceptance based on the people I interview in the big data, artificial intelligence (AI), and machine learning (ML) space.

I’m still waiting for the first FinTech, using AI/ML, to guarantee the security of my personally identifiable information (PII) and my money. The first FinTech to do this will quickly become a market leader for more conservative consumers and investors.

We will continue to have FinTechs using AI/ML to make customers’ lives simpler, easier, saving them money and giving them incentives to share their information. Consumers who are less concerned with the security of PII and more concerned with “deals” and CX will be attracted to these FinTechs.

It will be fun to watch it shake out over the next couple of decades. I believe companies that remove friction, eliminate pain, make customers’ lives simpler and easier, and do so securely will ultimately win share of wallet.

What do you think?

Dinner Next Week in NYC for Financial Services Marketers

I’m hosting a dinner in New York next week for financial services marketers. This is something we’re working on doing more often. A chance for our readers to meet up with people in similar jobs and companies, have dinner, hear from an expert panel, and get some of their questions answered by peers in the field.

Brent Reinhard, Chief Marketing Officer - Chase Business Banking, JPMorgan Chase & Co.
Brent Reinhard,
Chief Marketing Officer – Chase Business Banking,
JPMorgan Chase & Co.

I’m hosting a dinner in New York next week for financial services marketers. This is something we’re working on doing more often. A chance for our readers to meet up with people in similar jobs and companies, have  dinner, hear from an expert panel, and get some of their questions answered by peers in the field.

We have a great lineup for that panel discussion, too: Brent Reinhard, CMO of Chase Business Banking; Lizzie Massey, SVP, Marketing Products, Synchrony Financial; and Cortney Klein VP, Director of Advertising and Communications, WSFS Bank.

Lizzie Massey, SVP, Marketing Products, Synchrony Financial
Lizzie Massey,
SVP, Marketing Products,
Synchrony Financial

The actual discussion will be off the record, so don’t expect to read about it here afterwards. But what I hope we can accomplish is for the marketers in that room to be from fairly similar businesses — large banks, credit card companies, insurance companies, etc. — and be able to talk about the similar issues and opportunities they face, as well as benefit from each others’ expertise.

I hope they’ll make connections, both personal and in their ideas.

Cortney Klein, VP, Director of Advertising and Communications, WSFS Bank
Cortney Klein,
VP, Director of Advertising and Communications,
WSFS Bank

If that sounds like you, check out the website and register!

If you’re not in enterprise financial services, don’t worry, we’re going to be doing more of these in the future for different industry verticals.

When we do yours, what would you like to see from it?