Loans at the push of a button, virtual advisors, customer-specific product advertising – is the digital change finally arriving at Bank? If you want to survive as a bank with a branch network in the market, you have to think a bit about your appearance and offer portfolio in the form that the branch business will remain a necessity for customers in the future.
Function differently than customers once knew them
Albeit in a way that at first glance might seem a little strange to the customer – keyword: The branch of the future like you already exists in Berlin. The fact is, however, that banks will soon (have to) function differently than customers once knew them. The question is how? Has the “digital change” that has been propagated for some time now finally found its way into banks?
By building a machine! Sorry? But just recently, the head of customer management at the second largest German private bank proudly announced it. Unfortunately, anyone who now interprets such a statement as saying that a robot or a “virtual consultant” on the display will serve you in the future when visiting a bank branch is wrong. Because this “2Maschine” is, to put it simply, an internal database.
Now an internal database is neither a machine nor anything innovative or even technically revolutionary – admittedly. But that’s not the point, because the content of the database and what the bank intends to do with this data are interesting !?
Machine should win more customers and sell loans
According to the bank’s plan, this internal database, dubbed a “machine”, is to automatically acquire new customers as far as possible. And in the form that the customer receives product advertising corresponding to his characteristics. This is done with a system that evaluates data from existing customers in real time in order to offer them new products. Provided that he agrees to this, of course. In plain language, this means that anyone who has given their consent will receive multiple Cream Bank advertisements by email, for installment loans, mortgage lending or securities accounts.
What has been known as cross-selling and up-selling for years should now also find its way into banks. And it also seems to be crowned with success, because there are already 700,000 people with individual characteristics in the database. An impressive number, from which up to now 33,000 new customers have been won for the bank’s products. Most of you first open a normal checking account. This is exactly what enables the bank to recommend other products in a row. Result? Since the program was launched, the bank’s customers have signed ten percent more new product contracts.
More sales through customer-specific product advertising
Anyone who logs in to online banking in the future will then see advertising that only suits them thanks to the data stored and processed in the database. But this system is also used in the offline world. Anyone who comes to a branch of the bank in the future and would like a personal consultation will be confronted with their “characteristics” from the database.
Because the consultant sitting opposite him sees the recommendations automatically generated from the system for the customer. The bank is currently targeting the issue of in-house loans. By 2020, the financial institution wants to give loans worth six billion USD in new private customers. A new software platform is also helping here, which is designed to help customers get their loans faster, currently in the branch, and soon also completely online. The loan at the push of a button.