An industry poll conducted by the global analytics software firm FICO has revealed the challenges banks in Asia Pacific face in delivering real-time, tailored customer experiences.
Nearly nine in ten banks (88%) said they are already using predictive analytics to anticipate customer needs to some degree but only a tiny fraction (11%) described their hyper-personalisation strategies as highly advanced.
“Consumers now expect the same level of personalisation from their banks as they do from Netflix and Amazon,” said Dattu Kompella, managing director in Asia Pacific for FICO.
“With most banks still struggling to meet these expectations, those that succeed will gain a decisive edge in a market where customer experience is the ultimate differentiator.”
The poll highlights key barriers to achieving “segment of one” customer experiences. Almost three-quarters (72%) of respondents acknowledged their banks’ communication channels remain siloed or only partially integrated, preventing seamless customer engagement.
Meanwhile, automation adoption remains uneven. Half of the executives said their organisations had automated no more than half of their customer-facing decisions, including credit approvals, fraud alerts and personalised offers, hindering personalisation efforts.
The findings also revealed that banks’ use of real-time data and advanced analytics is still in its early stages. While 43% of executives said they use real-time data significantly or fully for customer insights in areas such as fraud detection and service, most remain at minimal or moderate adoption.
Similarly, just 37% reported extensively or fully predictive use of analytics, underscoring that while adoption is broad, maturity remains limited.
CLOSING THE GAP
Banks can only achieve hyper-personalisation by unifying data and decision-making across the customer life cycle.
“Every interaction — whether it’s a declined offer, a payment pattern or a service request — contains valuable insight,” said Mr Kompella.
“By consolidating activities, behaviours and preferences into a single decision-making platform, banks can act on insights in real-time, driving deeper engagement and loyalty.”
Using applied intelligence can harness these signals, enabling banks to anticipate customer needs and deliver the right action to the right person at the right moment.