In a digital-first world where banking apps are now the norm, how do banks stand out to customers? How do credit unions keep their members happy with a highly personalized approach that treats them as individuals?

It all comes down to contextual personalization. Younger account holders want digital tools to help them make informed decisions around how they uniquely spend, save, and earn. In fact, 99 percent of Generation Z and 98% of millennials use digital banking apps for budgets, spending decisions, and tracking personal finance progress. They prefer to receive alerts unique to their preferences. They want you to know who they are and what they care about when it matters most. In other words, they want contextual relevance from their FI.

What is contextual personalization?

Contextual personalization predicts exactly when an account holder needs a specific product according to data on their purchasing and financial behaviors. This presents banks and credit unions the opportunity to provide predictive offers to account holders within the context of their needs at that moment. This hyper personalization can boost account holder loyalty and help keep financial institutions competitive.

Contextual personalization plays a key role in driving revenue and keeping the FI in business because of the proactive nature of the messaging. Think about it from an algorithm perspective – people receive more news about a specific topic or trend if they previously showed interest in that topic.

That said, most smaller banks and credit unions do not have the resources to track and manage these contextual insightsand are missing out on valuable opportunities. Less than 20% of FIs believe they have the appropriate level of contextual personalization. They have the data in one form or another but lack contextual insight. In fact, eight out of 10 FIs have little or no personalization of their digital content.

How third-party providers can help

For smaller banks and credit unions who may not have the dedicated marketing, customer success or experience teams to develop content and manage digital channels on their own, using third-party software can be a huge help. There are providers who can offer messaging and engagement ideas for success through a variety of channels, including mobile (push notifications) or desktop.

Digital engagement among FIs will soon increase by six-fold or more. Therefore, hyper-personalization reminds each account holder of their unique value to their FI. Their loyalty relies on strong engagement tactics with helpful, relevant information that aligns with each step in their financial journey. Delivering on those strong engagement tactics with personalization built on account holders’ contextual insights will make you a financial force to be reckoned with in the market.

Ready to start using contextual personalization in your own engagement strategy? Larky nudge® can help. We deliver personalized push notification messaging through the mobile banking app, proactively reaching account holders with information relevant to them before they’re even aware. We also offer a campaign library of pre-configured messaging on a variety of engagement topics including auto loans, cashback offers, credit limit increases and more to help those teams who may not have the time or resources to create messaging on their own. Contact us to learn more or schedule a demo to see it in action for yourself!

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