Hyperpersonalization in banking: the key to true customer engagement

As Backbase’s Founder and CEO Jouk Pleiter points out in The Engagement Banking Revolution, Barclays found a way to see their 8 million customers as their biggest assets, rather than liabilities — and it’s changed the way they run their organization.2 And they’re not alone. Other industry leaders have re-architected around their customers, providing unique insights that have rocketed their app engagement from 40% to a sky-high 90%, results that even Big Tech can only dream of.

So, with this monumental opportunity before them, why aren’t other financial institutions capitalizing on the opportunity that hyperpersonalization presents, both to help their customers achieve financial wellbeing and to seize the chance to profit from this increase in loyalty?

It’s because doing so requires a paradigm shift in the way they think about financial services, and most banks aren’t there yet. They’re stuck in a transactional mindset, to say nothing of the outdated systems and cumbersome point solutions that make innovation impossible. They’re still so focused on pushing loans and similar products — their traditional money-makers — that they’ve forgotten to ask the customer what they want. And who can blame them? It’s hard to focus on the future of banking when you’ve got so much invested in maintaining the status quo.