Customer Experience 2020: The Emergence of the Autonomous Financial Institution

In the age of self-driving cars, additive “3D” manufacturing processes, and self-flying delivery drones – how can Financial Institutions capture similar opportunities enabled by continual advances in sensors, artificial intelligence and autonomous process automation?

Financial institutions need deep analytics solutions that:

1.  Start by allowing the definition of the desired business goal like growing market share, decreasing customer churn, increasing profitability – or even simultaneous combinations of these strategies.

2.  Use Artificial Intelligence in a self-learning mode, to continually optimize to the desired goal.

3.  Combine Machine Learning and AI algorithms with effective data management – all linked with opti-channel delivery channels. This gives FI’s the ability to execute sophisticated, automated marketing and customer management programs, with few manual processes and minimal human intervention.

4.  Take advantage of more and more value-creating opportunities (sales, marketing, financially accretive service interactions), to be more responsive to changes in the market place, and to significantly reduce marketing expenditures.

To achieve Customer Experience 2020, FIs need to:

  1. Develop insights faster and be smarter about prioritizing their customer interactions to achieve their financial and other goals…
  2. Act on those insights right away and be more responsive to changes in the marketplace – beating competitors to market opportunities…
  3. Automatically learn from the insights and be more efficient and operate more effectively at the lowest possible cost levels…

To learn more about Customer Experience 2020 and automated FI’s download our full white paper on our main website.

To learn about RedPort’s deep learning analytics technologies click the links below:

SmartBanker: Self-Learning analytics and marketing platform for banks, credit unions and consumer lenders.

SmartInsurer: Self-Learning analytics and marketing platform for insurance providers.

Do You Run A Spaghetti Strategy?

A number of strategies have been employed successfully by a great number of insurers around the world — five strategies, to be precise. One in particular, has failed miserably on every attempt. RedPort encourages the use of any of the first four. We highly recommend however you don’t even try the fifth; although, it may be the one that comes most naturally.

The four that have been employed successfully are these:

  1. The customer-centric strategy organizes around specific customer segments. It accommodates the wants or needs of a homogeneous group. One need might be ease-of–access, resulting in geographically defined segments that can be served by an office location. Another might be situational: USAA serves the needs of U.S. military members deployed abroad.
  2. The product-centric strategy aspires to be the best at a particular product, and then finds many channels through which to distribute that product to markets. Specialty-line insurers have built sustainable advantage by developing products for specific, often highly technical niches that require deep domain-specific knowledge.
  3. The channel-centric strategy model aspires to be the best at one particular distribution or delivery channel. By adhering to that strategic focus, successful channel-centric insurers create strong, sustainable advantage by concentrating on understanding every aspect of a particular channel’s workings and optimizing their delivery through it.
  4. The capital-centric strategy is one of the most common in the insurance industry. If executed properly, this strategy enhances the effect of the prior strategies by focus on the business — while reducing the cost of capital. Its primary advantage is centralizing, deploying, and employing surplus capital — leaving captives to employ any of the first three models and keeping their hands off the individual operating companies, letting them do what they do well.

Despite the four previous winners, some insurers still attempt spaghetti strategies.

Organizations try to deliver multiple products through multiple distribution channels to multiple customer segments means. They find themselves with average results … at best. And they end up creating densely bureaucratic organizations that systematically lose competitiveness as more focused companies concentrate on one product, channel, or segment.

Bottom line? Make the right strategic choices — and align your products, channels and customer segments under it. You’ll create more value for all your stakeholders.