Unlocking Success: Data-Driven Engagement Fuels Sustainable Growth for Financial Institutions

In today’s rapidly evolving landscape, digital engagement is a strategic growth initiative that banks and credit unions should leverage. The proliferation of data and AI when used effectively and responsibly has significantly enhanced the ways banks and credit unions can engage with various audiences. The shift away from traditional marketing methods has been driven by a combination of cultural, technological, and societal changes.

Outreach and communication using digital banking channels has become a key way of enhancing customer/member relationships and fostering new bonds with targeted audiences. If used properly, it enables institutions to scale their reach and engagement across various digital channels. Proper use starts with a financial institution paying attention to their data assets – understanding what they have and strategizing on how best to leverage it.

Success with digital starts at the top 

Over 80% of digitally mature and successful brands note that they have CEO sponsorship for data-driven initiatives. To be successful, the leadership at a financial institution must understand the strategic importance of this initiative and give their full support to prioritize digital as a means of engaging and serving members. Leadership that grasps the significance of shifting to digital engagement strategies in strengthening accountholder relationships and retention will prevent their bank or credit union from stagnation.

When the priority for digital engagement starts at the top and is effectively communicated throughout the organization, the cultural mindset also transforms. This is crucial for enhancing how an institution interacts with their accountholders and ultimately how the brand experiences growth.

Making digital a mission critical profit center

Traditional marketing is characterized by its static nature, high cost, and outcomes that are rarely measured or measurable.  Digital on the other hand is more informed with data and relies on key metrics that can be used to optimize the performance of engagement strategies. Today, accountholders expect more personalized and relevant content from their chosen financial institution.

Additionally, with branches becoming less frequented, digital engagement is essential for building consumer relationships. Implementing data and AI driven initiatives that incorporate tailored and personalized communication can power digital experiences for users fostering stronger relationships that go beyond isolated transactions.

Despite the many clear and measurable benefits, many financial institutions fail to take advantage of this strategic growth initiative.  By choosing to remain locked into traditional, “analog” marketing, they are forsaking significant value to their brand and its growth potential. In fact, it is mission critical for institutions and their executives to understand the power of data-driven engagement and reach.

Navigating success: the crucial role of AI and data insights

Effective digital engagement leverages data and AI insights to get a better view of individual customers and their unique needs. Using technology enables financial institutions to scale the delivery of a tailored, personalized experience to individuals.  The converse of this, where, for example, someone who rents a home is presented with an offer for an attractive rate on their home equity line of credit, simply displays that institution’s lack of care and consideration for their accountholders.

 Accountholders are more connected and demand personal interaction and relevant communication from their credit union or bank. It’s only natural because they are already receiving this from other providers, be it Amazon or Netflix. AI has indeed revolutionized communications in terms of personalization, automation, content generation, improved marketing insights and cost-effectiveness. It excels at compartmentalizing and analyzing large volumes of unstructured data.

With all of this progress, financial institutions can leverage technology to create tailored marketing messages and offers to accounts based on their preferences and behavior, at scale. User experience with a brand and its impact should not be underestimated.  Investing in demonstrating to accountholders that you truly know them and recognize them as distinct individuals with distinct financial needs and wants goes a long way towards relationship building and growth.

Let’s not forget measurement  

What gets measured gets improved.  Putting some rigor into metrics will deliver high returns.  Reliable measurement and reporting on the performance and results of  data and AI driven campaigns leads to analysis and optimization. This is a key advantage of digital and data centric strategies. The ability to access and comprehend macro and micro metrics regarding campaign performance enables financial institutions to assess the real impact of their engagement efforts and prioritize potential areas of optimization.

Institutions should consider implementing a variety of Key Performance Indicators (KPIs) such as impressions, leads, conversion rates, and new revenue. These precise metrics are invaluable tools in determining if marketing campaigns are hitting the intended mark.

Navigating the future: unleashing growth through digital engagement

In today’s marketing and communications landscape, the compass points toward data and AI-driven strategies. When leadership grasps the immense growth potential inherent in these approaches, investing in this realm becomes an obvious choice. By meticulously mining accountholder data for fresh deposits and loans, financial institutions outpace traditional prospecting methods, paving the way for sustainable growth. As the tides of customer needs ebb and flow, vigilant institutions will adapt, ensuring a prosperous voyage ahead.

 About Author:
Preetha Pulusani is the CEO of DeepTarget, a FinTech company powering the digital communication revolution for credit unions and banks with Growth as a Service™ (GRaaS™) helping financial institutions grow by delivering amazing experiences that result in up to 10x more sales and lasting relationships with their digital users.  For more information, visit www.deeptarget.com. 

Want to keep reading? This content is for subscribers only.

Login Subscribe