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By: Dylan DeMarco
December 9, 2021
Hyper-personalization is something that is becoming more common in today's day and age, and its use in the financial world will become profound. Being able to tailor experiences for consumers through things like AI will benefit everyone, especially when it comes to people's finances.
What is Hyper-Personalization
Hyper-personalization is the ability for financial services to provide a total customizable and consumer focused approach using AI and other technology. Characteristics like someone's transaction history or their shopping habits are used to provide people advice on how to effectively spend or save money.
Being able to provide solutions to consumers will allow them to have sound advice right at their fingertips. Thousands of people will be helped in ways that they never thought were possible. In our extremely connected society, hyper personalization is becoming the norm.
Why Should We Care?
Today's world revolves around bringing unique and personal experiences to people in a second's notice. Whether it is suggested products on sites like Instagram or suggested videos on YouTube, people are used to being catered to. This concept is equally, if not, more important for people's finances.
According to a Deloitte financial services blog, 80% of customers care most about an app or service that has superb technical/functional properties. What this means is that customers themselves want a system in place that will be able to help them at all times.
Companies like Capital One and also Neobanks have fully embraced the new personalized approach. They are doing things such as suggesting certain credit cards, loan types, and even offering rewards to users. Not surprisingly, the number of people using their services increased greatly.
Making Sure Consumers Are Being Helped
This hyper-personalization is so unique because it goes against some of the normal financial stereotypes. Typically, people associate banks and lenders as being greedy and trying to find the best possible financial decisions for themselves.
However, in these cases, we can see banks doing their absolute best to help consumers. Something even relatively small like suggesting a new credit card is valued by the consumers. It is important for this new thinking to continue because helping others should always take precedence. Happy customers bring new relationships and more value, which makes everyone happy.
Sources:
https://softjourn.com/insights/how-is-hyper-personalization-changing-the-banking-landscape
https://ukfinancialservicesinsights.deloitte.com/post/102gjdh/the-future-of-retail-banking-the-hyper-personalisation-imperative
https://thebioagency.com/hyper-personalisation-drives-loyalty-in-financial-services
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