November 26, 2014

McKinsey finds Personalization Key to ‘Bank of the Future’

According to McKinsey & Company director Somesh Khanna, the ‘bank of the future’ will look very different than what we have today.  Not surprisingly, he says in a new interview published on the McKinsey website, that digitization is fundamentally changing the way banks operate and creating some significant opportunities along the way.  Chief among them: the ability to personalize the customer experience.  He explains:

“Digital capabilities can turn the customer journey into something that’s highly personalized. It’s the way in which the device connects with the interaction that you have with a branch teller, how that connects with the messages you get as a customer with your mailbox, and all of that being delivered in a way that is seamless, that knows you, that recognizes you, that rewards you for your relationship with the bank. There’s a lot of amazing stuff that will likely happen—and is happening today in that space. And I think there will be a huge opportunity for banks to innovate.

The Personetics Take: We couldn’t have said it better ourselves.  This is exactly where retail banking is going and the key is that smart use of personalization allows banks to focus on rewarding their customers rather than punishing them.  This is a theme Personetics CEO David Sosna recently addressed in The Financial Brand, where he talked about the power of moving from penalties to personalization.  It’s a trend that’s already taking hold among several progressive banking institutions that we’ve been working with and we see it growing enormously in the coming months and years.

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