Mayralee Martinez
Apr 3 5 min read

Why Does Hyper-Personalization Matter in 2024?

Why Does Hyper-Personalization Matter in 2024?

As we roll through 2024, the era of broad customer segmentation is being rapidly replaced by a focus on individual preferences and needs. Hyper-personalization is no longer just a want from customers, it's a deal-breaking need. Leading this charge are neobanks, showcasing how banking can be both innovative and intimately personal. Let's dive into ways your financial institution can catch up to these digital banks to gain and retain customer loyalty. 

The Power of Data

At the heart of hyper-personalization lies a trio of technological advancements: predictive analytics, AI, and machine learning. This powerful combination enables banks and credit unions to analyze real-time data, like search phrases and geographical locations, to create highly personalized customer experiences to help users move forward in their financial journey. This approach means anticipating and catering to the customer’s needs with precision and foresight.
According to a 2023 survey by Accenture, two-thirds of bank customers across all generations like seeing bank branches in their neighborhoods as it confirms the stability and availability of their bank. In addition to being one step ahead of your customers online, AI tools, like Q&A chatbots, leave an opening for bank staff to focus on human-centric tasks for increased efficiency both in the physical branch and in the digital channel.

Case in Point: Customized Marketing Campaigns

Consider this scenario: a customer consistently searches for "homes for sale near me" and "2024 mortgage rates". Traditional banking might overlook this pattern, but hyper-personalization identifies it as a prime opportunity. Here, the customer is signaling a need for a home loan. Hyper-personalization allows banks to respond with tailor-made services, like offering targeted low-interest home loans or suggesting prequalification based on the customer's creditworthiness.

The Bottom Line: Revenue Uplift and Enhanced Customer Experience

Hyper-personalization transcends beyond mere relevance—it's about proactively fulfilling customer needs. According to the Boston Consulting Group, effective hyper-personalization can lead to an annual revenue uplift of up to 10%. More than just a revenue booster, it's about forging a deeper, more meaningful connection with customers, offering an experience so customized that they feel uniquely valued.
Products like Finotta's Personified Platform take personalization to the next level. Finotta enables financial institutions to push customized actions to users directly in their mobile banking environment at precisely the right time. Our Financial Coach is personalized and adaptive to each customer's unique needs. Whether they are just starting their financial planning or looking to level up their financial health, our technology is there to guide your customers and assist them along the way. Whether saving more, reducing debt, or investing wisely, customers receive personalized nudges that align with their financial goals.
Not only does Finotta guarantee customer success, but with our Personified Platform helps your FI generate revenue by cross-selling your products and increases customer engagement all in the digital channel. Embracing Finotta ensures exceeding customer expectations, building loyalty, and establishing a strong presence in the digital finance market.

The Future is Hyper-Personalized

As 2024 unfolds, the banking industry faces a clear directive: adopt hyper-personalization. Neobanks are already capitalizing on this trend, using advanced technology to create unmatched customer experiences. The race is on for others to follow suit. Hyper-personalization is not just the next big thing; it is the new norm in banking. The question now is, are you prepared to embrace this future?

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