On its own, credit data can’t help you deliver the personalised, proactive service your customers want. You also need to understand the full picture of each individual person to return the human element to financial services.
In post-war Britain, accessing financial services was a very personal thing and opening a new account or requesting a loan or mortgage was always done face-to-face. What’s more, bank managers typically knew their customers very well, including their family situation, where they lived, what they did for a living, and even if they owned a car or TV set.
The relationship between bank manager and customer was good for both parties. The bank could be confident that loans would only be made to people who were reliable and able to pay them back. At the same time, customers got an excellent service, with access to all the information and advice they needed in one place.
Today’s customers crave a return to the highly personalised service experience that was once delivered in bank branches across the country. However, they now want to access relevant, personalised financial services through multiple channels, in the most convenient way possible.
The personalisation challenge
Lenders have long been using consumer credit data to help them make more effective and more responsible lending decisions. However, while this kind of data is essential for responsible lending, it can’t by itself support the kind of proactive, personalised services today’s customers want.
For that, you need a much more comprehensive view of the customer. Just like the bank manager of yesteryear, you need to know who a customer is, what they do, what they own, and what they need in terms of financial services at any given time.
With customers leaving a data trail everywhere they go, it’s now possible to bring all of the pieces of the jigsaw together and achieve a 360-degree view of customers for the first time.
Using data to transform the customer experience
By working with big data analytics specialists with the right skills and experience, lenders can combine credit data with other third-party and industry sources. Based on the application of complex algorithms, these huge datasets can be converted into valuable business insight.
Firstly, lenders can gain a clear view of each customer’s financial situation, including what they own (properties, vehicles and other assets), what they earn, what they owe, and how they typically pay for their goods and services. As a result, lenders can get a much clearer view of a customer’s financial situation and credit worthiness, and create personalised offers that meet their financial needs to the letter.
Secondly, lenders can use customers’ personal data to help predict their financial needs. With a clear view of which customers are moving house, ready to switch providers or buying a new car, lenders can offer them exactly the financial products they need, exactly when they need them. Insight from combined financial and personal data can also help institutions build stronger, longer-lasting, more profitable customer relationships.
Unlocking the true value of data
When it comes to data, the whole is really greater than the sum of its parts. In other words, the value of a customer’s combined asset data, transaction data, credit data and personal data far outweighs the value of any one of these datasets in isolation.
Experian’s ExPin solution can combine all of this data together to enable lenders to accurately predict customer’s financial needs; proactively offer them appropriate, affordable and inclusive financial solutions; and help to comply with financial services regulations for treating customers fairly.