Account Holder Engagement in a Digital Banking World

Posted on

December 10, 2021


Angela Applebee

The digital banking world will survive and thrive based on how it connects with account holders. That's why financial institutions work to develop an individualized approach. Traditional methods are not as effective with the new digital transformation. So the banking world now continues to search for ways to attract and retain online-only account holders with mobile banking app functionality and mobile push notifications.

Understanding analytics

Financial institutions analyze a constant stream of demographic data. It allows them to better understand the needs of account holders. They consider each account holder's stage of life, socioeconomic status and financial interests to better understand account holders' trading behavior. Analyzing data allows them to develop and market newly designed products and services to better address account holder engagement.

Develop a knowledge base for account holders

Data-driven content is essential to support the needs of account holders. Since content is not a one-size-fits-all proposition, financial institutions create the types of financial content that best meet account holders' needs.

The digital banking world must provide educational resources to account holders:

These financial details should be relevant to account holder engagement, with specific reference or applicability to their status and status of life.

Segmentation of account holders

Financial institutions can partner with third-party services that can segment the account holder base. Segmentation allows you to more easily target account holders based on demographic info, status and other socio-economic details. Here are some examples of how financial institutions segment their audience:

  • Segment based on use: Financial institutions divide their account holders based on how they use their credit cards to better support future needs. With that level of data, financial institutions are able to guess the types of purchases account holders will make.
  • Segment based on interest: Financial institutions can segment those account holders who love to travel or those with other interests. Financial institutions need to know whether an account holder would benefit from frequent flier miles or other rewards.

Segmentation serves to strengthen the relationship with account holders. It allows financial institutions to deliver the financial products and services that will best mesh with their needs.

Create loyalty programs for account holders

One example of financial loyalty programs can encourage account holders to spend money using their credit cards. These programs could also encourage them to maintain an active account. The idea is to improve account holder engagement now and in the future.

Loyalty programs support data collection by giving financial institutions the data they need to make larger business decisions. It also allows them to better segment and target account holders for cross-promotional services and support.

Customize your services

Financial institutions must tailor their services to address the needs of their account holders. They must also effectively communicate about custom products and services at the right place and right time. Here are just a few ways financial institutions can personalize their services and support:

  • Real-time personalization: Financial institutions can deliver 24/7 personalized services, which can also drive account holder conversion and engagement. Real-time service is always effective because it functions even when staff is out of the office. The seamless nature of this personalization is particularly effective.
  • Prescriptive personalization: Financial institutions anticipate and deliver services that support account holders' needs. These services should sync up with those needs without the account holder even needing to think about asking for it. It's what they need when they need it.
  • Machine-learning personalization: Financial institutions use AI-driven automation to reach out to account holders. Automation is based on account holder behavior. So, that level of personalization doesn't require a staff member to intervene and control the automated service. It feels personal but without the time and expense of additional labor.

These personalization services allow you to better support the needs of your account holders, both now and in the future. But, your personalized services should also be constantly evolving with changes in technology.

Next step: Find out how Larky nudge® can help

The digital banking world will survive and thrive based on account holder engagement. That's why it's so important to engage with account holders and to provide resources that facilitate connection.

You can achieve that level of engagement with help from the Larky nudge® platform. We can bring your messages to account holders at exactly the right time, making the personalization process described earlier effortless. That level of service lends itself to greater engagement and conversion with mobile banking app functionality and mobile push notifications. Your account holders will love it, and they'll even refer their friends and family.

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