Service Personalization for Small Banks: Five Key Benefits

4 min read
Nov 24, 2022 12:17:56 PM

Personalization of financial services consists of using data to enhance our understanding of the needs within the communities we serve. If we offer our customers what they need, how they need it, and we do it promptly, the impact that financial services have on their lives or businesses will be much more significant.

Little by little, the personalization of services is becoming a standard expectation for customers. According to this survey, 72% of users believe that banks' offerings should be tailor-made for their needs, and 50% believe that financial institutions should be more proactive in offering financial advice that improves the lives of their users.

Personalization efforts were costly and complicated for a long time, but technological advances, particularly cloud computing, have made personalization available to more and more organizations. Credit Unions and so-called "Small Banks" are no exception.

In addition to quickly detecting opportunities to create new products and services, personalization based on data analysis can optimize processes.

A clear example of this is portfolio recovery. As we have said in other articles, there are many reasons why a customer may be late in paying their obligations. Suppose we use a bulk approach to solve this problem without considering the nuances and differences between each individual. In that case, success will be much lower than if we use technology to analyze the situation on a case-by-case basis.

To learn more about this topic, we invite you to learn about five advantages of customized financial services for Credit Unions and Small Banks:

Five benefits your customers get from service personalization.

Five benefits your customers get from service personalization

Personalizing services can increase your organization's agility while significantly improving your users' experience.

Here are five positive impacts you can have when using technology to understand your customers better and improve your mark on your community.

Unlock the power of cloud computing

Because of its high-security standards, flexibility, and enormous computing and storage capacity, the cloud is already a tool that companies in the financial sector are using. If you want to learn more about this topic, you can check the Travelex case.

Personalization of services can be the first step your organization takes to develop cloud-based experiences. For example, based on data analysis, you can create communication strategies that allow your community members to obtain valuable insights to improve their financial health. These types of messages must be accurate and personalized to avoid being intrusive.

After experimenting with service customization, it is also common for companies using cloud services to implement physical document analysis. Tools such as AWS Textract and AWS Comprehend enable organizations to increase their operational effectiveness by giving them a flexible and customizable tool to reduce the time spent analyzing documents manually, like in credit application processes.


Personalization is... customizable

The first step to start personalizing is to collect quality information.

Organizations have been accumulating data for years and have policies in place to ensure that this information is stored in a way that can be quickly consulted to create strategies that improve the lives of end users.

However, this is not to say that institutions just started to collect data cannot have a personalization strategy in place right now. Obviously, in these cases, the short- and medium-term results will be more modest, but early on, improvements in the user experience make the investment worthwhile.


You pay for what you use

You must invest in hardware and maintenance if you base our data analysis on an on-premises server. You also expose our company to considerable risk if a situation prevents the server from functioning for a long time.

Since they have a pay-as-you-go model, cloud storage services allows you to reduce costs . Another significant advantage is that security and maintenance are no longer a concern.

This cost reduction gives organizations the opportunity to invest more resources and energy in capturing better-quality data and improving the impact of their services on the community.


You can accurately measure results

A successful personalization strategy must be in sync with your business objectives. These objectives will be the compass of the personalization process; therefore, they must be clear and measurable.

Another recommendation in these cases is that, in addition to being clear about how the results will be measured, is having an initial measurement from which future can be compared.

It doesn't matter if you seek to acquire new users, get current users to increase their interactions, or any other goal. Personalization of services must be designed to yield objective results that allow your organization to have a clear return on investment.


Improve the experience across all channels

Any personalization aims to improve the user experience, including digital and physical channels.

Analyzing data allows us to have a complete view of our users as human beings and, therefore, gives us the ability to improve our services in a way that impacts all channels in which they interact with us.

The personalization of services can begin a multichannel strategy in which the physical and digital experience is significantly improved by investing the minimum effort and generating the maximum result.

Improve-performance-across-all channels


At Pragma, we are experts in creating cloud-based technology solutions that aim to improve people's lives. If you want to start a conversation

you can do it now.


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