Do our apps know us better than we know ourselves?

Getting served AI-personalized recommendations in our day-to-day is the new normal

You put your headphones in, unlock your phone, and open the Spotify app. You’re greeted with an entire library of playlists customized for you based on what you’ve listened to in the past; Your Top Mixes, Made For You, Find Your New Favourite Song, Based On Recent Listening. Sometimes it feels like the app knows you better than you know yourself 😂    

Imagine Netflix only knew your age and gender, and they had to make recommendations based strictly on that? It probably wouldn’t feel very personal. Each person has their own preferences, so age and gender can’t truly define a person’s needs and interests. However, because Netflix knows specifically what you are watching, it can actually serve up what you’d prefer.

Spotify, Netflix, Amazon; what do they have in common? They give recommendations based on the customer’s actual preferences on an individual level. These companies aren’t relying on aggregated demographic data to make suggestions; they’ve created a segment of one for every single user.

This isn’t a new trend. Even social media analyses users’ activity to customize their newsfeeds.

Why FIs need to join the personalization party 🥳

People expect personalization in their lives, and yes, that includes financial services. Around 53% of consumers are willing to bank with big tech and neobanks who already know them well. The good news is that they are willing to be transparent about their activities if it positively benefits them; 87% of customers are willing to have details of their activity tracked in exchange for more personalized rewards and brand experiences. 

Research also found that brands that have adopted AI for marketing strategy have seen a 37% reduction in costs along with a 39% increase in revenue. This is because correct targeting creates less wasted efforts. Anticipating offers that will enhance a customer’s financial journey really is a win-win for everyone!

Say goodbye to information overload 👋

Because today’s customers live in an information-saturated world, physically and digitally, “decision fatigue” is very real. Knowing exactly how customers are spending their money means they can get information that is relevant to them and their needs; not information overload that gives too many choices. FI’s can create programs and product recommendations based on customers’ actual preferences. In turn, the customer gets a highly personalized experience that helps them achieve their financial goals.

Build authentic relationships 🤝

Something that we need to keep in mind as FIs adopt all this technology is that we cannot lose the importance of the human element within financial services, and the data shows it. 84% of customers say that being treated like a person, not a number, is very important in winning their business. For example, getting a marketing email about a mortgage that a customer already has can feel disconnected and ingenuine. From the customer’s perspective, how could you not know that they already have a mortgage based on their spend insights? 

Proving that you understand your customers helps build and strengthen your relationships with them. Using these insights helps you build relevant customer engagement, showing that you care about their goals and financial wellbeing, building trust and loyalty along the way.

Let’s get started 🚀

We know it’s not just about getting more data, but rather accessing the right data and transforming it into actionable insights. Learn how the Sensibill Platform can simplify the entire process and make your data work for you.