Why You Need a 360-Degree Customer View for Banking

How well do you understand your banking customers? Can you predict what they will need next?

There’s no better time to reevaluate whether your business is meeting its full potential, and often that potential is defined by your approach to collecting, aggregating, analyzing, and acting upon your data. Do you know where your customer data lives? What will that data tell you about your customer’s needs now and into the future?

What does a 360-degree customer view for banking look like?

Simply put, a “360-degree view” means a deeper understanding of what your customers are doing with their money. It means having easier access to your customers’ financial data so you can in turn serve them better. 

“Having a 360-degree customer view means understanding the full potential value of your relationship with the customer,” said Michael Martin with Saxony Partners’ Financial Services practice. 

“You’ve got disparate systems within the banking industry. Some are older with less capabilities than others, some are specialized to specific purposes. The concept of a customer is often different in one system to another, and so the challenge is to gather all of that information about how customers are using their money into one place. It’s definitely a problem that needs to be addressed.”

Why do I need it?

When the data you need for each of your customers is siloed into a variety of incompatible systems, you can’t use it as a tool for success. A 360-degree customer view for banking empowers you to improve customer service, protect your business with risk mitigation, and seek out infinite sales opportunities.

When you have a clear picture of your customers’ information, you can analyze the data to help you market the right products to each individual. 

“There is so much room for opportunity with this mindset,” Saxony’s Senior Manager of Financial Services Michael Martin said.

Martin used Amazon as an example of this concept. 

Thanks to a wealth of readily accessible data on their customers, Amazon can accurately predict what your next purchase will be and advertise it to you. While the implications have been remarkable for their business model, the opportunity in the banking industry is arguably even greater. Imagine predicting that there is a 60% probability a customer will sign a mortgage and borrow hundreds of thousands of dollars.

“Banks are not technology companies, so they cannot typically answer those questions about what a customer might do next,” Martin said. “Regardless of the size of the bank and its available resources, it can be difficult to both streamline all of the information and analyze it. When you can get all of the data about each particular customer in one place so that you do have a 360-degree view, you can suggest the right products to the right people. The more data you have about each person, the more accurately you will be able to tailor products and experiences to their needs. Without that data, you’re just guessing.”

Martin said that many financial institutions don’t realize how impactful customer data can be on their profit margins.

“The data is already there, they just haven’t tapped into it. The key is to think more strategically about how to use the available information.”

How can I achieve it?

While the concept of a 360-degree customer view may seem elusive, there is a very practical way to achieve it. Our financial services team has helped numerous banking institutions organize and analyze their data.

“I just completed a project to help one of our clients address this problem,” Martin said. 

“The client was collecting massive amounts of information—33 percent of credit unions in the United States use their services and give them their data. They were immediately aggregating this data and removing the specific transactional information that could be analyzed. 

“We created a new way for them to ingest that data. Rather than aggregating it and losing all of that detail, they are now retaining all of the records in totality. It is much larger in size, but it gives them analytical insights to use in the future.”

When it comes to accomplishing a 360-degree customer view, our team knows the roadmap will look a little bit different for every company. That’s why we prioritize every client’s unique business needs from the moment we begin a new project.

“We don’t recommend a one-size-fits-all approach,” Martin said. “We customize our process to individual client needs. Everything depends on the business pain point you want to address first. Step one is to identify ‘What do we want to solve?’

“We listen to the business and understand what their pain points are and what will bring the best return on their investment. Once we understand the most important pain point, we can make the right recommendations for their data.”

If you are interested in determining the best data strategy for your company and its customers in 2021, our team at Saxony Partners can help.