Insights White Paper: How financial institutions can respond to the COVID-19 pandemic (and beyond)
Image credit: Sensibill
Just like their customers, financial institutions have not been unaffected by the global COVID-19 pandemic; it’s fair to say that customer needs have changed drastically and, with them, the need for institutions to respond. We’re giving you actionable insights and solutions to help you better respond to your customers’ needs in our latest White Paper, “Insights & Solutions: How Financial Institutions Can Respond to the COVID-19 Pandemic (And Beyond)”.
Even in 2021, it’s unclear for how long the changes brought on by the global pandemic will persist, or when/if the pandemic’s impact will lessen in severity. Daily changes to consumer spend; a shift to e-commerce and remote business; and economic uncertainty are all prolonged results of the COVID-19 pandemic and subsequent lockdowns.
Equipping your financial institution with the actionable insights it needs to respond proactively (and intuitively) to its customers’ needs is no small feat. But the fact remains that your customers are looking to you for the services and solutions they need to optimize their financial wellbeing. How, exactly, do you respond?
It starts with looking towards deeper data. Armed with the right insights and SKU-level data, your institution can do so much more for its customers. Let’s take a look at how data can help you respond to their changing needs.
Using segmentation to develop insights that go below the surface
By combining bank transaction logs with Sensibill’s broader research into transactions, SKU-level items, and consumer behavior, institutions can gather a deeper understanding of consumer and SMB needs, not only as they relate to the pandemic but into the future.
For example, segmenting customer data based on recent purchases and transactions can reveal significant insight into how that customer spends their money; what they’re buying, and why they’re buying. Let’s say a couple’s recent spend transactions show they have purchased accessories for newborns, such as baby clothes, baby books, and diapers; this data shows the couple’s decision to have a child, which would be confirmed when the couple purchases larger items weeks later, like a crib and a changing table.
All of this data points to a clear life stage shift, which is important for the couple’s financial institution, as it’s an opportunity to personalize services and solutions they’ll offer the couple at this stage in their life (and into the future).
Respond more proactively (and on time)
Now that you the couple above are expecting a child based on the deep data you’ve gathered from their spending and transaction behaviours, what’s next?
Naturally, you’ll want to formulate a way you can promote services to the couple, but the key here is providing the most relevant solutions that are personalized to their needs right now, as well as their future planning.
For example, the couple will most likely look at life insurance (if they don’t already have it), along with account options for saving money for their child’s future and potentially an emergency fund. The longer it takes your institution to respond to this couple’s life stage shift, the more likely you are to “miss the boat” in onboarding them to the right solutions.
The sooner a financial institution can observe or notice these changes, the more time it has to respond. Time is of the essence in segmenting consumers and understanding their needs, but you’d be surprised at how often the mark is missed. Most financial institutions believe they can respond more quickly and aspire to acquire the data and technology to do so.
Using the right data will allow you to better segment customers that need timely and relevant solutions your institution is well-positioned to offer them. The key is to arm your institution with that deeper data and use it to respond quickly and swiftly in order to serve your customers.
Interested in how your peers are responding to customers’ needs in the face of the global pandemic?
Our team gathered insights from financial institutions and service providers to unearth the ways in which FIs hope to respond to changing customer needs, not just through the pandemic but into the future. We break down these discoveries and the actionable solutions FIs can adopt to help their customers now and for the long haul, in our White Paper, “Insights and Solutions: How Financial Institutions Can Respond to the COVID-19 Pandemic (And Beyond)”.
Download your free copy of our latest White Paper and discover the innovative solutions your peers are using to better serve their customers.