Why personalization matters in BFSI and what companies must do

The business landscape is shifting toward faster, better customer service—and nowhere is this more apparent than in the banking, financial services, and insurance (BFSI) industry. The key to gaining a competitive edge in this ever-evolving market lies in understanding and adapting to one crucial aspect: the growing demand for personalized experiences. 

In the digital age, consumers expect more than basic transactional interactions from their financial institutions—they desire experiences tailored to their unique needs and preferences. This change isn't merely a passing fad. Meeting it is a necessity for BFSI companies aiming to enhance customer satisfaction, foster loyalty, and fuel business growth.

Rising customer expectations

Today’s consumers are active participants who play a decisive role in shaping their own experiences. They expect businesses to recognize their individuality and treat them accordingly. This shift is evident in the BFSI sector. Today's customers no longer want to visit a branch, conduct their transactions, and leave. Instead, they seek personalized financial services that align with their needs, preferences, and behaviors. Be it through an online platform, a mobile app, or an in-person visit by a banking rep, they want to interact with their financial institutions on their terms. In the face of these rising customer expectations, BFSI firms must prioritize personalization to stay relevant and competitive.

Read also: Rebooting your customer service solution with generative AI

Growing competition from fintechs and digi-banks

With the rise of fintech startups and digital-native banks, the BFSI industry's competitive landscape has evolved dramatically. These new players are leveraging technology to deliver high-quality personalized experiences, setting a new benchmark for the BFSI industry. Traditional financial institutions must now strive to match or surpass this standard. To do this, they need to embrace personalization, not merely as a service differentiator but as a core business strategy.

In the face of rising expectations and intense competition, personalization is no longer a “nice to have” but rather a “must have” for BFSI institutions. Let’s now delve into how financial institutions can strike a balance between personalization and operational efficiency by adopting AI and omnichannel strategies, among other measures. 

The power of AI and predictive analytics

AI and predictive analytics are revolutionizing the BFSI industry. Through AI, financial institutions can analyze vast amounts of customer data to gain valuable insights into their needs and preferences. For instance, AI-powered chatbots are adept at handling routine inquiries, freeing human advisors to tackle more complex customer concerns. Likewise, predictive analytics can help advisors anticipate changes in a customer's financial situation, enabling them to offer proactive advice. In this way, AI and predictive analytics are integral to the industry's push toward greater personalization.

Efficient customer interaction management

To provide personalized experiences, financial institutions must manage customer interactions efficiently and effectively. This includes establishing clear protocols for handling customer inquiries and complaints, as well as ensuring that customers can reach their preferred advisor or an appropriate alternative. Efficient customer interaction management, coupled with a customer-centric approach, is pivotal to delivering personalized service.

Omnichannel strategies

An omnichannel strategy can enhance personalization in BFSI. Integrating robust cloud computing infrastructure like Amazon Web Services (AWS) with customer service software like Freshdesk can enable companies to manage and analyze vast amounts of customer data efficiently. The outcome is a seamless, personalized customer experience across all channels, whether online or offline, ensuring that customers feel valued and understood.

Integration of text-based services

Today's customers increasingly favor text-based communication. Services like Textline, when integrated with Freshdesk, offer personalized customer interactions via text. This not only aligns with customers' communication preferences but also enhances the overall customer experience by delivering prompt and customized responses.

Businesses that successfully embrace personalization stand to gain improved customer satisfaction, loyalty, and an increased Net Promoter Score (NPS).

Learn more about how Freshdesk can help in delivering personalized customer experiences for the BFSI industry.