Proposal to Boost Customer

Engagement in XYZ Bank

Koushik Mondal
IIM Ranchi
Introduction
 BCG’s latest bank study shows that the
retail banks with most effective digital
strategies are enjoying the highest
economic benefits
 The top performing banks with more
digitalized solutions have 19% better
cost-income ratios compared to median
banks
 The objective of this journey to
digitalization for banking sector is better
customer satisfaction leading to more
revenue per customer and increased
retention
 The pressure of embracing a more digital
mode of operation has reduced the gap
of online and mobile self-service
capabilities of different players in the
sector
Problem Statement: Strategies to Increase
the Customer Engagement
Breaking Down the Problem:
In today’s era of hyper-personalization and
competitive environment, the experience provided To achieve the level of personalization and
by the banks is no longer a credit card or a customization required, it is important to understand
checking account; it’s the meaningful insights, on the purchasing behavior, social interactions and even
demand advices and services based on their insights like health and key life events
unique needs

Recent BCG report on The Power of

Personalization shows 3/5th of all transactions of
the top competitors are digital, so innovating and Your bank should use the improved data and rapidly
creating a differentiating factor in terms of offering improving technologies to understand customer’s
personalized experience is important; in fact 74% financial and behavioral DNA and develop individualized
of the banking service providers believe in offer on that basis
partnering with third parties to access machine
learning technologies
Recent Industry Trends and Impact of Personalization on
Key Customer Decisions (1/2)
78% of Financial Institutions have already increased
investment in customer experience innovation in 2017

32% of financial services organizations are using AI technologies such as predictive analytics,
recommendation engines and voice recognition and responses

50% of all banking service providers believe that AI will have a significant impact
on their business model

14% more revenue is expected by FIs if they could offer customers personalized experience successfully

40% of the consumers say that providing a personalized service would change their loyalty towards their bank; in fact adopting
1 to 1 approach with each of its 17 billion customers has directly impacted the revenue for Royal Bank of Scotland, increasing
mortgage retention to 20%
Recent Industry Trends and Impact of
Personalization on Key Customer Decisions (2/2)

 This recent BCG survey shows how

important personalized experiences
are to the bank customers and it is
mostly common in the 18-34 year
olds cohort and with the highest level
of bank assets
Solutions: Products and features

Financial Advices based on User

Blockchain and Distributed Ledger
Smart banking embracing AI and Behavior: Customer purchasing
Technology(DLT): Distributed network
Cognitive Technologies: Cognitive behavior can be tracked from mobile
of computers (nodes) that maintains a
solutions can automate knowledge app or E-Wallet transactions leveraging
shared source of information, thus
creation and empower agents with our digital capabilities and depending
transaction data is immutable and
deeply personalized answers thus on the data generated by them,
trust is enables by cryptographic
uncovering customer needs customers can be provided with
algorithm
automated financial advices, better
fraud detection and financial rewards
Benefits for the Client
End-to-end automation reduces
Better fraud detection using AI-
customer acquisition cost due to
anomaly detection algorithms
less labor intensive functioning

Digitization: AI backed
application includes digitization
for simplified banking
experience and enhanced
productivity

Algorithmic trading: AI backed

Increase in Customer Base and systems are responsible for
Brand Loyalty nearly 70% of the trading today
One stop solution by [x]Cube LABS
Under the umbrella of brand name of Purple Talk which is having a decade of industry
experience and a clientele consisting of Amazon, Texas Instruments, McIntosh and what not

Vast arena of service providing experience in IOT, Digital Transformation, Data

Analytics, Cloud Services, Mobile App Design and the list goes on and on

Deep understandings of banking industry, customer insights, data security,

consumer privacy regulations, IPs like Brand Kinesis and MobiousLoop

Experience of providing revolutionary banking solutions in Mobile Payments,

Mobile Check Deposits and Customer Onboarding in both B2B and B2C segments

Trusted by leading banking brands like North American BANCARD and HDFC ERGO

We are just not a partner with deep technical expertise but also someone who lay out the
strategy for your success and transform your enterprise
References
• https://www.forbes.com/sites/bernardmarr/2018/03/02/artificial-intelligence-and-blockchain-3-major-benefits-of-
combining-these-two-mega-trends/
• https://www2.deloitte.com/content/dam/Deloitte/in/Documents/financial-services/in-fs-deloitte-banking-colloquium-
thoughtpaper-cii.pdf
• https://www2.deloitte.com/content/dam/Deloitte/in/Documents/financial-services/in-fs-deloitte-banking-colloquium-
thoughtpaper-cii.pdf
• https://www.accenture.com/us-en/insight-hyper-relevance-gcpr
• https://www.ey.com/en_gl/advisory/finance-consulting-services
• https://www.forbes.com/sites/billeehoward/2018/04/08/ask-the-cmo-jennifer-breithaupt-on-embracing-emotion-as-a-
critical-driver-of-business-performance/#4bbf2b545fc1
• https://www.targetmarketingmag.com/article/bank-marketing-meet-cx-and-customer-engagement/
• https://www.ngdata.com/financial-services-customer-engagement-strategies/