Tailoring the data driven customer experience


April 2017

The European banking market continues to evolve rapidly – in fact, so rapidly that some banks are struggling to keep up. EY and Efma want to help address these challenges.

In our view, the ability to deliver pro-active customer experiences is the surest route to sustainable profitability for European banks. This means using Customer Data Analytics to deliver tailored customer journeys.

Drawing on the results of EY's 2016 Global Consumer Banking Survey, this report compares the views of consumers with the experience of bankers. The aim is to provide a roadmap for banks looking to harness the power of customer data and take their customer experiences to the next level.

Our findings:
1.    Technological disruption, regulatory change (PSD2 and Open Banking) and customer evolution are threatening the relevance of European banks.
2.    Banks need to maintain ownership of the customer relationship to avoid commoditisation, and can take inspiration from other industries.
3.    Banks face many obstacles to making the best use of customer data.
4.    It is crucial to understand the complexity of customers’ needs, preferences and capabilities.
5.    Customer data analytics (CDA) is fundamental to delivering tailored customer experiences.
6.    A Life Events-driven marketing campaign is a valuable and pragmatic way to apply CDA.
7.    To extract full value from CDA, banks may need to consider changing internal and external structures.

Banks that can deliver high quality experiences will be able to defend and strengthen their customer relationships, fighting off the threat from technology-enabled entrants. This in turn will allow them to use their traditional strengths to grow revenues.

For European banks, the threats are significant – but so is the prize.

Keywords : Big data , Customer experience , API/Open banking , Digital marketing