Leveraging Transaction Data for Enhanced Consumer Engagement
Today, consumers expect the best experiences to become their everyday standards. They compare companies not just to direct competitors but to whoever offers the highest quality, convenience, and personalized interactions. This demand is no different for financial institutions. Account holders want
banks and
credit unions to know them, value them and protect them. When a primary financial institution fails to meet basic needs, consumers are quick to look elsewhere. To retain and win back account holders, financial institutions need a combination of deep insights and the ability to design and deliver exceptional experiences.
Financial services marketing and
personalized banking are crucial to meeting account holders’ needs.
Grow Better with Financial Services Marketing
Financial services marketing involves using a broad scope of account holder transaction data to create strategies that better meet consumer needs. This data helps banks and credit unions understand an account holder’s complete financial picture, assess their activities with competing institutions, and ultimately, recapture wallet share with win-back campaigns.
Here are key steps to leverage financial services marketing:
- Gain competitive intelligence: Understand where your account holders are spending their money outside your institution. This involves analyzing money movement data to identify the competing institutions your account holders use.
- Analyze payment data: Capture payment amounts to held-away accounts, like home loans and investment firms, to understand what products your account holders need.
- Compare products: Compare the set of products your account holders have with you to those they have with competitors. This can help identify opportunities to grow wallet share.
Value Your Account Holders with Personalized Banking
Personalized banking tailors services and communication to fit each account holder’s unique needs. This approach goes beyond generic offerings, using data to understand individual preferences, life stage and financial goals. By making account holders feel valued and understood, personalized banking enhances their overall experience and strengthens loyalty to the financial institution.
Here’s how personalized banking can be implemented:
- Harness account holder transaction data: Use the wealth of data available to provide personalized financial advice and product recommendations that resonate.
- Customize communications: Address account holders by their names and send them targeted offers that reflect their spending habits and financial goals, enhancing engagement and relevance.
- Offer customized financial solutions: Develop and present personalized financial products that align with each account holder’s unique financial situation, like personalized loan offers or investment advice.
Promote Credit Cards to Win Back Wallet Share
Credit card usage is trending up. According to Alkami’s 2024 Telemetry Data Report, The High Interest Rate Environment and Its Impact on Consumers and Financial Institutions, the average monthly payment made towards credit cards has been increasing since 2020, reaching $2,376 by 2023, a 19% increase over pre-pandemic levels. To recapture payment spend, banks and credit unions need to understand and act on the data related to their account holders’ credit card usage. Many households have multiple credit card relationships, and understanding this can help financial institutions recapture a larger share of wallet.
Here are a couple ways to leverage credit card data for increased wallet share:
- Monitor credit card activity: Keep an eye on the payment behavior of your account holders to different credit card providers. Account holders making smaller monthly payments might be more open to switching cards.
- Use cross-selling strategies: Leverage this information to offer competitive credit card options, unique rewards programs, complementary products, or attractive debt consolidation interest rates.
Personalize Cross-Sell Messages
Financial institutions can use data from payments to develop a complete picture of their account holders’ wallets. For example, buy now pay later (BNPL) adoption shows no signs of slowing down. According to Alkami’s 2024 Telemetry Data Report, there were 5.17x more BNPL users in 2023 than in 2019.
By combining account holders’ payment data with knowledge of their life stages and interests, banks and credit unions can deliver targeted cross-sell messages.
- Offer debt consolidation and refinancing products: Use data to create products that simplify account holders’ financial lives, especially those making multiple loan payments.
- Utilize engagement strategies: Marketing teams can use the principle that it takes many touchpoints for an account holder to act on a call to action. Use this opportunity to engage with account holders through targeted messages and product offers.
Pair Financial Services Marketing & Personalized Banking for Increased Wallet Share
Integrating financial services marketing and personalized banking is essential for modern financial institutions. By leveraging data-driven financial services marketing to understand and meet account holder needs, banks and credit unions can create exceptional personalized banking experiences that drive loyalty and increase wallet share. Personalized banking helps build stronger relationships, encouraging account holders to consolidate their financial activities within one institution. Banks and credit unions can boost account holder satisfaction, retain existing account holders and attract new ones in a competitive market.
