Banks are now striving to become more advice-driven, to give customers personalised financial guidance that is tailored specifically to their needs and goals. Banks are becoming proficient in customer segmentation, which allows them to better target potential customers and also to offer products and services that are suited to their individual needs and lifestyles. The banks have also invested heavily in technology and digital platforms that enable customers to manage their accounts easily, securely and from any location.
The move towards advice-driven banking has been driven by a number of factors. Customers now expect more from their banking experience, including integrated solutions, personalised advice and convenience. In addition, the rise in digital technology has allowed banks to leverage new innovative methods to target, engage and retain customers. Technology has also helped to reduce costs associated with providing financial advice, which in turn has enabled banks to offer customers more competitive rates and products.
The move towards advice-driven banking has been embraced by many banks, as they recognise the importance of offering personalised advice and guidance in order to remain profitable. Banks are now much more focused on understanding their customers’ needs and wants, and are leveraging technology to deliver solutions tailored to their individual preferences. Banks also strive to be agile and respond rapidly to changes in customer behaviour and the market.
To that end, banks have invested heavily in analytics and data science to better understand their customers’ preferences and drives. This data can be used to develop customer segmentation strategies, to identify potentially profitable customers, and to develop strategies to target them more effectively. Banks are also investing in virtual assistants and chatbots to provide basic advice and capture customer feedback.
The focus on advice-driven banking has also led to increased collaboration between banks and other financial service providers. Banks are now looking to collaborate with fintechs to provide customers with innovative solutions to their financial challenges, such as budgeting tools, personal finance management, and investment advice. Banks are also beginning to understand the importance of providing customers with a comprehensive suite of products that are tailored to their individual needs.
In conclusion, banks are striving to become more advice-driven to remain competitive in the current market. They are investing heavily in technology and data science to better understand their customers’ needs and offer them personalised financial advice. Banks are also looking to collaborate with fintechs to provide customers with innovative financial solutions. This shift towards advice-driven banking has been embraced by many banks, as it is seen as a way to remain profitable and to offer customers a better overall experience.
This article was contributed on Aug 24, 2023
