How can banks implement the Netflix model in their ‘apps’? – Finance

The stage where users only find transactional functionality in banks’ mobile applications could evolve into a new stage where upon entry we will find service suggestions in the same way that Netflix presents us with content.

The new facilities come from the hand of AI-based solutions, which cross data for the financial services customers use, as well as their debit or credit card purchases, preferences and profiles, leading to increased performance and results.

“They can be born Banners Or personal information that increases the conversion rate,” emphasized German Rama, Vice President of Product Infocorp, a Uruguayan company with a presence in Latin America that provides digital solutions to the banking sector. “Entities realize they have very limited banking.”

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The acceleration of online services in the financial sector with the pandemic has led to a certain lethargy with which digital channels have been evolving and beyond the introduction of chatbots of inquiries. Next-generation services allow banks to make better use of data. In these solutions a widgetA small application or file-like program that performs specific functions on the platform.

The PwC report indicates that only between 11% and 22% of banking executives globally recognized before 2020 that their entities were ready to focus their business model on the customer, improve their channels, streamline operating models, innovate, and proactively manage risks and regulations. and take advantage of the information available to them as a competitive advantage.

EY, in another report, also noted that one of the banking challenges for 2021 is to “lay the foundations for smarter operations”, using AI to automate or speed up manual processes, fine-tune the level of straightforward processing, deploy automation and create “ultra-customized” products.

Banks can leverage customer consumption and financial services usage data, based on the behavior patterns they store every day, to deliver new products directly.

For example, from the payment information for Uber transportation services, an offer can be created directly to the customer in a program Bank to schedule your trip. The same can be done when ordering meals, purchasing items online and, in the future, purchasing tickets for sporting events, theater and concerts, and choosing the seats they prefer.

At the level of purchases, promotions and discounts can be created so that users acquire favorite brands according to their usual behaviors on normal days and on holidays such as Father’s Day, Mother’s Day or Christmas. It can also create offers from restaurants that customers prefer.

Many financial entities have discount programs and promotions in stores for their customers, whose list is difficult to find and who sometimes send a text message that can be received as spam or wanted (Spam emails). With the solution of entering this information into the application, the customer will find what really interests him according to his consumer behavior.

In all these cases the interaction is directly with the bank, which eliminates intermediaries and commission costs.

The Bank can also make suggestions and facilities for the use of its own services. For example, customers know that they can automate the payment of utilities, but they rarely receive information on how to do this and fewer promotions.

Or they usually keep the paycheck money in a savings account and leave it there, making withdrawals or shopping with the linked card. The Bank can propose to manage the resources in the accounts Overnight They earn more interest and the balance is available when they need it.

If they also have fixed savings in an account, the bank can suggest a time deposit from checking the movements made. For example, if such savings usually remain the same for three months, a certificate for this term with benefits can be proposed to the customer (more interest) and the bank (in resource management).

In the same way, notifications about payday for loans and credit cards, car financing suggestions depending on the person’s condition and tastes, alerts about the percentage of depreciation of the card balance or the account linked to the salary to provide some financial services that allow you to finish two weeks without problems.

“That extra mile is what somehow makes the difference in the customer experience. The bank goes further,” Rama stressed. “That’s what Waze does, which used to save the track and you had to point it out, but now it automatically suggests it. The same Netflix does.”