Customer Analytics in Retail Banking: Why Here? Why Now?
Customer analytics has been a good idea for some time, despite being implemented by a minority of banks. Advances in processing, memory, database design, and analytic methods can dramatically improve performance and lower costs for financial institutions. It’s time for banks to take the idea more seriously.
Data analytics is a complex subject and a complex undertaking. In the report, Customer Analytics in Retail Banking: Why Here? Why Now?, Celent examines the growing role of customer analytics (that is, predictive analytics applied to customer data) in retail banking and why it should be a priority for banks. Financial institutions with no customer analytics experience should take the idea more seriously. Institutions with customer analytics initiatives should revisit how things are being done.
There are at least three reasons developed in the report:
- The new normal in retail banking economics.
- The imperative for customer centricity in an increasingly self-service interaction environment.
- Technology advancements in data analytics.
Over the next five years, these factors will advance customer analytics from a project undertaken by a minority of banks to a core competency among the majority of financial institutions.
“Key retail banking priorities--specifically, using self-service channels to drive branch foot traffic, improving branch channel efficiency and effectiveness, and learning how to sell and service using digital channels--all require customer analytics,” says Bob Meara, Senior Analyst with Celent’s Banking Group and author of the report. “The good news is that there has never been such a variety of specialized customer analytics solutions. The time is now.”
This report demystifies customer analytics, makes a case for its use in practical ways, and provides an overview of the vendor landscape for customer analytics solutions alongside four detailed case studies of banks deriving compelling value through its use.
This 46-page report contains 22 figures and nine tables.