- The lines between digital and analog lives are blurring.
- IBM study reports that banks must embrace personalization, reimagine security, join ecosystems, and rethink their organizational structure to remain relevant and successful in the current landscape.
Personalization has become a key aspect of customer experience, and banks must understand their customers’ needs and position their products and services accordingly. This requires shifting away from traditional push strategies and towards data-driven agility and AI.
What is the IBM study “From customer experience to enterprise experience” about, and what are its implications for banks?
From Customer Experience to Enterprise Experience: IBM Study
The IBM Institute for Business Value study “From customer experience to enterprise experience” discusses how the lines between digital and analog lives are blurring and how this impacts the definition of experience.
The report notes that customers now view their lives as part of a human experience, whether from digital channels or analog living.
Embracing Personalization and Reimagining Security
IBM study suggests that banks must work on the following:
- Embrace personalization
- Reimagine security in a shared infrastructure world
- Join ecosystems
- Rethink their organizational structure
Personalization is particularly important, as it allows banks to understand their customers better and offer more suitable products and services.
However, the past push strategy used by banks, where products from individual departments are pushed to potential customers using campaigns, may no longer work, as customers are becoming more vocal and expect personalization efforts from other retail-facing industries.
The report of the IBM Study also highlights that banks need to rethink security in a shared infrastructure world, embrace being part of an ecosystem, and prepare for an ecosystem play where supply chain attacks, multimodal fraud, and the need for an ecosystem-wide security framework become common.
It also notes that incumbent banks need to change their organizational structure to become flatter, with data shared across the organization, to remain relevant and competitive.
Banks must balance the benefits of being part of broader ecosystems with the potential security risks of increased exposure. They need to prepare for an ecosystem play, where security threats can come from any point. They must keep the customer experience consistent while ensuring their system is secure.