Consumers expect financial institutions to understand and anticipate their needs. Alkami’s recent commissioned research in partnership with The Center for Generational Kinetics shows that 44% of digital banking Americans wish their financial provider offered a more personalized digital banking experience, including 56% of younger Millennials (ages 28-35) compared to 28% of Boomers (59-65). To develop life-long relationships, banks and credit unions must meet the increasing demand for personalized, relevant account holder experiences. This is where data-driven financial services marketing comes into play.
How can financial institutions effectively harness data analytics in banking to support their account holders’ financial health? The answer lies in financial services marketing and the strategic use of data analytics in banking to support account holders’ financial wellness.
Data reveals insights about account holders’ competitive accounts, lifestyles and preferences. Alkami’s Data & Marketing Solutions transform core and transaction data into data tags to drive relevant account holder experiences. Some of these data tags include financial health indicators, which help financial institutions gain a clearer picture of each account holder’s financial well-being. With deep knowledge of the account holder’s financial health, banks and credit unions can offer relevant marketing messages and products that can make a difference.
Let’s explore how data analytics in banking can enhance financial services marketing strategies and improve the financial health of account holders.
Assess the financial health of account holders by identifying those who can make recurring payments on standard budget items like utilities, mobile service payments, insurance payments, daycare, and subscription services. This information helps financial institutions understand the stability of an account holder’s income and expenses, allowing for more personalized financial services marketing.
For instance, if an account holder is consistently late on a particular bill, an institution could offer automated reminders or a budgeting tool as part of a targeted financial services marketing campaign.
Debt management is a critical aspect of financial wellness. Financial institutions can offer account holders ways to improve their financial health by understanding their competitive accounts. By analyzing data on loans, credit cards, and other debts, banks and credit unions can craft marketing messages that promote debt consolidation loans, refinancing options, or better interest rates.
For example, if an institution notices that an account holder is paying high-interest rates on multiple credit cards, it could suggest a debt consolidation loan with a lower interest rate through targeted financial services marketing.
Helping account holders reach their savings goals is another vital aspect of financial health. By understanding their lifestyle and financial situation, financial institutions can create financial services marketing campaigns that offer personalized savings plans and advice.
For instance, if data shows that an account holder has a surplus after monthly expenses, the institution could recommend setting up an automatic transfer to a savings account or an investment product. This kind of predictive financial services marketing can make saving effortless and help account holders build a more secure financial future.
A sudden decrease in payroll deposits, combined with late payments and overdrafting can indicate financial hardship. Financial institutions can identify account holders experiencing this issue who could benefit from products or services to manage their budgets. By combining data on decreasing payroll deposits with average monthly payroll deposits, financial institutions can create custom financial services marketing campaigns to support these account holders.
For example, the institution could reach out with offers for financial counseling, budget management tools, or short-term loans to help bridge the gap until their financial situation stabilizes.
Timely payments are a key indicator of financial wellness. Financial institutions can assess the financial health of their account holders by identifying those who are past due on their loans and credit card payments.
Using this information, banks and credit unions can provide timely reminders, support, and solutions to help account holders stay on track with their payments. This can include restructuring loans or providing financial counseling to address underlying issues.
Financial stress is often highest among those receiving unemployment assistance or relying on payday advances. Financial institutions can identify those in financial distress through recent unemployment assistance deposits and payday advance activity. They can then market tailored financial counseling, budgeting tools, or short-term loans with better terms than payday lenders.
Building audiences based on how recently unemployment deposits or payday lender transactions were observed can help financial institutions provide timely support to those who need it most. This targeted financial services marketing can make a significant difference in the lives of account holders facing financial hardships.
By leveraging data analytics in banking, financial institutions can provide personalized and effective support, helping account holders manage debt, save money, and navigate financial challenges. This not only enhances account holder satisfaction but also strengthens the relationship between financial institutions and their account holders.
Embracing data-driven financial services marketing allows financial institutions to make data actionable, paving the way for a more personalized banking experience. In doing so, financial institutions can help account holders achieve financial wellness while optimizing their financial services marketing strategies.
Learn more about your account holders’ financial health with Alkami’s financial services marketing.
