How Banks Can Leverage Transactional Data for Unparalleled Customer Engagement

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In a caller Fintech Fireside Asia webinar titled “Monetising Transactional Data successful Banking pinch Impactful Engagement,” fintech and banking experts gathered to talk really banks tin leverage their immense transactional information to thrust customer engagement, summation customer life value, and amplify business impact.

The sheet featured Colin Dinn, Chief Transformation Officer of Vietcombank; Nauman Bashir, Head of Digital & Customer Value Management astatine Standard Chartered; Mukesh Pilania, Executive Vice President and Head of Digital Banking astatine Techcombank; and Dorel Blitz, Vice President of Strategy & Business Development of Personetics. The chat was moderated by Urs Bolt, a fintech and banking veteran.

The Evolution of Data Usage successful Banking

Colin Dinn kicked disconnected nan chat by tracing nan improvement of information usage successful banking complete nan past fewer decades. He noted that earlier automation, banks had nan richest information group owed to individual interactions pinch customers. However, arsenic automation increased, banks mislaid immoderate of that friendly customer knowledge.

“What we’ve done done automation is we’ve mislaid a batch of that, and now we’re looking astatine really we stitchery that back,”

Colin said.

Colin Dinn, Chief Transformation Officer of Vietcombank

Colin Dinn, Chief Transformation Officer, Vietcombank

Banks person since gone done stages of viewing transactions arsenic expenses, driving for convenience and adoption, collecting transactional data, and utilizing information for in installments decisioning.

Colin emphasised nan value of information privateness arsenic banks move guardant pinch utilising transactional data, stating,

“Data privateness is paramount. Data privateness is nan overriding facet successful immoderate usage of data, and that we’re going to beryllium utilizing going forward. And it’s a governance rumor that each azygous slope takes very, very seriously.”

Trends successful Financial Services Industry

Nauman Bashir shared insights connected trends successful Singapore, which he described arsenic being “ahead successful position of galore areas of really information is being efficaciously used.”

He highlighted regulatory sandboxes, digital banking licences, open banking, and APIs arsenic cardinal developments that person fostered invention and improved customer experiences.

Nauman besides noted nan occurrence of Trust Bank, a integer slope launched by Standard Chartered successful business pinch a section e-commerce player, which has attracted astir a cardinal customers and built a beardown equilibrium expanse successful conscionable 2 years.

Mukesh Pilania, Executive Vice President and Head of Digital Banking astatine Techcombank

Mukesh Pilania, EVP and Head of Digital Banking, Techcombank

Mukesh Pilania discussed trends from an emerging system perspective, noting nan increasing request for ESG and greenish finance products. He besides emphasised nan value of utilizing integer solutions to heighten nan capabilities of offline channels and create “super narration managers.”

Mukesh said,

“There is of people real-time settlements, and past really we tin link holistically nan full end-to-end travel for a customer from nan payments to opportunity a wealth, and really tin you present everything connected digital.

And don’t support integer only for end-users, but besides usage integer to heighten capabilities of your offline channels and branches and make your narration head ace narration managers by giving them exertion solutions powered by data.”

Implementing Data-Driven Strategies

When it comes to implementing data-driven strategies, Dorel Blitz stressed nan value of starting pinch a well-defined business lawsuit and strategy.

“It’s ne'er astir nan technology; nan exertion already solving astir of nan problems. It’s really astir starting pinch defining nan business lawsuit and nan strategy to support it,”

Dorel said.

He besides highlighted nan value of considering really banks want to present worth to customers, and what nan correct channels are to summation customer usage.

Dorel Blitz, Vice President of Strategy & Business Development of Personetics

Dorel Blitz, VP of Strategy & Business Development, Personetics

Techcombank’s Mukesh Pilania agreed, adding that information value and governance are important preconditions for successful implementation.

“Please ideate immoderate instrumentality is arsenic bully arsenic nan value of information you have. If your information is not clean, information is not decently governed and structured, past galore of these implementations will fail,”

he cautioned.

Mukesh suggested starting pinch a pilot, refining it based connected results, and past implementing it while continuously refining nan approach.

The Role of Branches successful a Data-Driven World

The panellists besides discussed nan domiciled of branches successful a data-driven world. Nauman Bashir emphasised that branches will proceed to play an important role, peculiarly for high-value transactions, advisory services, and narration building.

“The worth of quality touch and individual relationship is highly valuable, and it will stay valuable,”

he said.

Nauman noted that branches tin service arsenic acquisition centres, wherever customers tin supply feedback, be financial literacy workshops, and speech ideas.

Vietcombank Chief Transformation Officer Colin Dinn echoed this sentiment, stating that nan branch is not going distant anytime soon.

“We ne'er should underestimate nan worth of a branch, because it is location wherever we really do get that individual contact,”

he said.

Colin besides challenged nan conception of individual channels, arguing that banks should attraction connected creating a communal income and work architecture that integrates integer and information capabilities crossed each channels.

Collaborating pinch Fintechs and New Players

When asked astir collaborating pinch fintechs and caller players, Nauman Bashir acknowledged that while banks person not traditionally been known for being unfastened to collaboration, this is changing rapidly.

Nauman Bashir, Head of Digital & Customer Value Management astatine Standard Chartered

Nauman Bashir, Head of Digital & Customer Value Management, Standard Chartered

“I deliberation there’s truthful overmuch worth of collaborating, which by slope by themselves cannot do aliases that partner but themselves cannot do,”

he said.

“They cannot create that acquisition aliases work aliases merchandise for customer unless they travel together.”

Nauman cited examples specified arsenic Trust Bank and partnerships pinch bargain now, salary later providers arsenic successful collaborations that person created worth for customers.

The Future of AI and Human Capital successful Banking

The panellists besides tackled questions astir nan effect of generative AI connected bequest tech problems and nan early of quality superior costs successful banking. While acknowledging nan imaginable of AI, they cautioned against overhyping its capabilities.

“I deliberation not successful nan adjacent future. First of all, I deliberation there’s a batch of excitement astir generative AI, etc., and AI taking complete nan world, and hence nan humans will not beryllium required. I deliberation that’s far, acold away,”

Mukesh Pilania said.

He suggested that AI and exertion will beryllium utilized to heighten nan capabilities of quality bankers, creating “Ironman suits” that empower them pinch knowledge and information to amended service customers.

The Role of Transaction Data and AI successful Future Banking

As banks proceed to navigate nan evolving scenery of data-driven customer engagement, it is clear that transactional information holds immense imaginable for driving business effect and improving customer experiences.

By focusing connected information quality, governance, and strategical implementation, and by embracing collaboration pinch fintechs and caller players, banks tin unlock nan powerfulness of this valuable plus to create much personalised, proactive, and impactful interactions pinch their customers.

While exertion and AI will undoubtedly play an progressively important role, nan panellists work together that nan quality touch provided by bankers and branches will stay basal successful building spot and deepening relationships pinch customers.

Watch nan afloat “Monetising Transactional Data successful Banking pinch Impactful Engagement” webinar connected nan Fintech Fireside Asia YouTube channel:

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