Today’s consumers seek personalized banking services beyond the initial offer in their email inbox. In fact, they are looking for more personalized experiences throughout the lending process and across channels and touchpoints, according to recent research conducted by Forrester Consulting on behalf of Blend.¹
Unfortunately, many financial institutions grapple with how to achieve this level of personalization. In fact, according to the study, only 14% of customers believe their bank is currently delivering excellent personalized experiences. Why is this?
One potential reason is that many banks are deploying ad hoc personalization methods. For example, the Forrester research found that many banks have focused their personalization efforts on email marketing.
This isn’t enough. When financial institutions replace an ad hoc approach with a strategy that elevates their personalization efforts throughout the loan cycle, they can achieve something far more comprehensive. This is where end-to-end digital banking software can make a big difference.
¹A commissioned study conducted by Forrester Consulting on behalf of Blend
4 ways end-to-end digital banking software can help with personalization
Banks with mature personalization programs — categorized by Forrester as institutions that deliver personalization across a range of metrics including experiences, data, advice and recommendations, channels, and products — are setting an example.
Survey respondents from mature banks were almost three times as likely as respondents from low-maturity banks to say their bank surpassed its targets for cross-selling, upselling, and customer acquisition.
Using end-to-end digital banking software — technology that streamlines workflows and helps take borrowers from application to close in a single intuitive interface — financial institutions can level up their efforts to match the more sophisticated personalization approaches favored by mature banks. They can do this in a number of ways, including:
1. Leveraging customer data more effectively
Customer context, which is derived from data management and insights generation, guides all effective personalization efforts and is foundational to your personalization strategy. End-to-end lending platforms act as a central repository for all customer data that banks can use to build an effective personalization program.
2. Anticipating customer needs to deliver proactive personalized insights and recommendations
By using the data that customers have already provided about themselves, financial institutions can anticipate their needs and deliver more meaningful experiences at the moments that matter. This is called proactive finance. With end-to-end digital banking software, banking teams can dynamically present relevant offers at the right place and at the right time.
3. Personalizing a greater number of experiences, consistently
The ability to deliver consistent experiences can improve loyalty and, as a result, build stronger customer relationships. With end-to-end digital banking software, banks can deliver the same great personalized experience across every interaction and across every product — whether it is for home equity, a personal loan, credit card, deposit account, or vehicle loan. Data pre-fill can help streamline the experience further.
4. Empowering employees to deliver personalized experiences
Consumers value human support even more when it is personalized. End-to-end digital banking software brings all customer information into one place. With access to customer context, lending teams get visibility into the data they need to make personalized offers in-branch and on calls — and to ultimately position themselves as trusted advisors.
How FSB is raising the bar on personalization
For First State Bank Mortgage (FSB), the secret to delivering personalized service — and maintaining a competitive edge — is simple: listening to customers and delivering what they want.
What FSB customers have demanded is a more intuitive, user-friendly experience that spans the duration of each customer’s journey. “We wanted a borrower portal that was easier for the borrower from start to finish,” said Jody Adray, vice president of mortgage information systems at FSB. “The biggest complaint from borrowers has always been that our portal was too clunky. So we wanted something that was streamlined.”
The end-to-end experience Blend delivers in one consistent portal has been incredibly well-received. “We always do a post-closing customer survey, and it’s amazing how often they say how seamless and enjoyable our process is,” said Rita Rieke, the senior vice president and director of mortgage production at FSB.
“We love that it’s not just a tool for loan officers — it’s a tool for everyone,” added Adray.