The Personalization Difference: Using Data to Deliver Engaging Consumer Experiences

The banking landscape is becoming increasingly disruptive. New financial products and services are emerging at an accelerated rate. Banks and credit unions must focus on personalized experiences to

gain a competitive edge and increase market share.

Marketers can take on this challenge by understanding customer data to personalize

company products and services—both digitally and in-branch. By using the right data to

power personalization, financial institutions can differentiate themselves from competition and provide relevant experiences throughout a

customer’s financial life stages.

CHAPTER 1

The Challenge: Financial Marketing in the Omnichannel Era

CHAPTER 2

The Opportunity: Personalization as a Key Differentiator for Financial Institutions

CHAPTER 3

A Tale of Two Industries: Personalization in Retail Versus the Financial Sector

CHAPTER 4

Data: The Key to Personalization

CONCLUSION

The Future Requires a Human Touch

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Learn more at everfi.com/FinEd or call 202. 871.9292

The Personalization Difference: Using Data to Deliver Engaging Consumer Experiences

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The Challenge: Financial Marketing in the Omnichannel Era

CHAPTER 1

According to new research by BAI and Digital Banking Report Research, the No. 1 challenge by marketers in financial institutions is acquiring new customers.1 Second? Personalizing the consumer’s digital experience.

These two challenges are at once daunting and all-encompassing; to solve them requires examining the reasons causing the challenges. We’ve identified six obstacles banks and credit unions face today that make it difficult to acquire new consumers and to create personalized experiences with prospects and existing consumers alike.

Know Your Consumers

Recent surveys show that the percent of consumers using mobile devices for banking and payments has increased dramatically across all age groups, largely replacing in-branch transactions.2 And while it’s harder to develop a personal relationship with people you seldom see, research suggests that mobile banking consumers still want to use a branch bank as a place to get personalized advice. In fact, according to the Federal Reserve, “Consumers who use mobile and online banking more than once a week are over 60 percent more likely to be active retail-branch users than those who do not.” 3 The takeaway? Banks and credit unions need to seek creative ways to fill the human gap made by tech.

Compete with FinTech Disruptors

A 2018 survey of all types of financial institutions of any asset size found that 94 percent were very or extremely concerned about fintech start-ups, an increase of more than 40 percent from a similar survey just two years earlier.4 As fintech companies innovate with new, digital ways to pay bills, send money, or fund projects, they grab consumers and market share from traditional financial institutions.

Top 2 challenges facing financial institutions today: acquiring new customers and creating personalized experiences.

1. From BAI/Digital Banking Report Research, November 2018, cited in Marous, Jim. “Financial Marketers Must Create Intimacy At Scale.” The Financial Brand, 27 Nov. 2018, thefinancialbrand.com/77026/personalization-intimacy-digital-banking-marketing/.

2. Division of Consumer and Community Affairs, Federal Reserve Board. Consumers and Mobile Financial Services 2015. March 2015, www.federalreserve.gov/econresdata/consumers-and-mobile-financial-services-report-201503.pdf Merry, Ellen A. “Mobile Banking: A Closer Look at Survey Measures” FEDSNotes 27 March 2018. www.federalreserve.gov/econres/notes/feds-notes/mobile-banking-a-closer-look-at-survey-measures-20180327.htm

3. “The future of US retail-banking distribution.” McKinsey, August 2014. www.mckinsey.com/industries/financial-services/our-insights/the-future-of-us-retail-banking-distribution

4. “94% of Banking Firms Can’t Deliver on ‘Personalization Promise’.” TheFinancialBrand, 4 September 2018, www.thefinancialbrand.com/74986/banking-personalization-targeting-trends

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Overcome Consumer Bias Against Legacy Banks

It’s a Catch-22: as banks pushed consumers toward ATMs and then onto the internet to add convenience and save money, consumers have come to see banking as a commodity to be shopped for solely on price. Unfortunately, this means many banks and credit unions have lost their unique brand flavor and personal touch, which is not a great formula for building lasting consumer relationships.5

Cut Through Information Overload

Research in the field of behavioral finance has shown that offering multiple options for investment products, like 401(k)s, to employees with limited financial savvy leads to a sense of “information overload.”6 Consumers may become overwhelmed when faced with a range of complex product offerings such as annuities or different kinds of mutual funds, leading them to either disconnect or make a poor decision.

Build Brand Loyalty with Capricious Consumers

Many consumers spread their accounts over multiple financial institutions. A survey of 2,000 banking consumers found that 50 percent use more than one bank or credit union; more than 10 percent use three. Banks and credit unions need to work harder to bring consumers back, to build brand loyalty, and to be perceived as more than a simple commodity.

Create a Seamless Consumer Experience

From ATMs to mobile apps to social media, consumers have many potential points of contact with your financial institution—but are they experiencing the same tone, branding, accessibility, and familiarity at each channel? A unified consumer experience is both a marketing and a technology challenge, but it is a key step to personalization. As Paul Schaus, CEO of financial consulting firm CCG Catalyst, notes, “breaking down data silos to gain a full view of the consumer allows banks to gain new sales by tracking consumer activity across channels to uncover needs and deliver timely, personalized messages.”7

50 percent of banking consumers use more than one bank or credit union and more than 10 percent use three.

5. Pine, B. Joseph II. “Beyond Products & Services in Banking.” StrategicHorizons, September 2016. www.strategichorizons.com/wp-content/uploads/2016/09/Banking-Beyond-Products-and-Services-in-Banking.pdf

6. Bloch, Brian J. “Information Overload: How It Hurts Investors.” Investopedia, 6 January 2018. www.investopedia.com/articles/financial-theory/11/negative-impact-of-information-overload.asp

7. Schaus, Paul. “Are you really doing omnichannel?” BankingExchange, 13 March 2018 www.bankingexchange.com/news-feed/item/7421-are-you-really-doing-omnichannel

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The Opportunity: Personalization as a Key Differentiator for Financial Institutions

CHAPTER 2

Consumers Expect Personalization

In today’s increasingly impersonal and digital world, personalization is a key reason why consumers are attracted to some brands and not others. In a recent study, Accenture found that a third of consumers who abandon business relationships do so because personalization is lacking. Alternatively, 48 percent of repeat consumers also expect specialized treatment for being a good consumer.8

We know that all consumers are not equally valuable. But personalization doesn’t just help organizations attract and retain consumers—it also appears to impact the quality of those consumers. In a recent survey of 1,000 consumers conducted by Epsilon, 90 percent said personalization was appealing to them, and 80 percent said that they are more likely to do business with a company that offers personalized experiences, online and off.9 Consumers who said that they found personalization appealing were ten times more likely to be a brand’s best consumers, making more than 15 transactions annually. Those who believed that companies were doing “very well” on personalization shopped with them three times more often than with companies they thought were doing personalization “poorly.” 10

Additionally, according to the Econsultancy Conversion Rate Optimization Report, 93 percent of companies report having more success in converting prospects into consumers when they personalize their marketing. Bottom line? Consumers have come to expect personalized experiences and will vote with their feet when companies and organizations come up short. 11

80 percent of consumers said that they are more likely to do business with a company that offers personalized experiences, online and off.9

8. Wollan, Robert, et al. “Https://Www.accenture.com/t20180219T081429Z__w__/Us-En/_acnmedia/PDF-71/Accenture-Global-DD-GCPR-Hyper-Relevance-POV-V12.Pdf.” Accenture Strategy, 2017, www.accenture.com/t20180219T081429Z__w__/us-en/_acnmedia/PDF-71/Accenture-Global-DD-GCPR-Hyper-Relevance-POV-V12.pdf.

9. Epsilon. The Power of Me: The Impact of Personalization on Marketing Performance, 4 January 2018 www.slideshare.net/EpsilonMktg/the-power-of-me-the-impact-of-personalization-on-marketing-performance/10

10. Epsilon. The Power of Me. Slide 38.11. Bannister, Kristian. “Why Personalization Isn’t Just for Amazon Anymore.” Smart Insights, Smart Insights, 19 Dec. 2017, www.smartinsights.com/ecommerce/web-

personalisation/personalization-isnt-just-amazon-anymore/.

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Why Personalization Works

Why does personalization work so well? Marketing professionals and behavioral psychologists cite many factors including:

• A need to feel in control. When consumers believe that the messages they receive are tailored to them and based on their past behaviors and preferences, it provides a sense of internal control, which in turn increases enjoyment and enhances a consumer’s feeling of uniqueness.

• A bulwark against information overload. An Accenture Interactive study found that nearly half of surveyed consumers abandoned a website because its content was poorly curated and offered too many options. In contrast, personalization cuts right to the chase with product or service recommendations specifically tailored to that consumer’s personal needs and preferences. Sometimes, less is more: personalized and customized content helps consumers direct their attention to the most relevant choices.

• A need to feel unique. No one wants to feel like they are just another face in the crowd. Personalized content that connects with a person’s particular life stage or financial circumstances makes them feel valued and understood.

Knowing why personalization is effective and recognizing its ROI are essential steps for financial institutions interested in differentiating themselves in an increasingly competitive market—but as we’re about to share, most banks and credit unions are still not leveraging this powerful tool.12

1,000 consumers were asked to think about all the ways that the companies they did business with provided a personalized experience.13

The top mentions:

This suggests that people interpret personalization in different ways. For example, 32 percent of those surveyed defined personalization as a kind of customization: “It means something suited to me exactly so that I’m more likely to be interested in what they’re selling.”

Another 32 percent described it in terms of service: “It means that the company will know what you want, your likes and dislikes, and make sure you have what you want.” 16 percent thought of it as “personalized offers, products and coupons that meet your needs and are items you typically buy.” Smaller percentages cited services like dedicated shopping assistants or curb service (8 percent) or a business using their shopping or browsing history to customize ads (7 percent).

What Do Consumers Mean by Personalization?

Personalized and customized content helps consumers direct their attention to the most relevant choices.

31% 22% 20%Coupons/discounts/rewards programs

Recommendations based on preferences or prior purchases

Helpful and personable customer service

12. Accenture. Pulse Check 2018: Moving from Communication to Conversation. p. 3 www.accenture.com/t20180801T080703Z__w__/us-en/_acnmedia/PDF-83/Accenture-Making-Personal.pdf

13. Epsilon. The Power of Me. Slide 14.

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Financial Institutions Fail the Personalization Test

Unfortunately, when it comes to personalization, financial institutions tend to lag behind their counterparts in other industries. While the Epsilon survey showed that 89 percent of consumers were “much” or “somewhat” more likely to do business with a financial institution doing personalization well, only 59 percent said such institutions were doing it “very” or “somewhat” well—an astonishing 30 percent gap. So, which industries are doing it well? In the digital space, online retailers are doing personalization the right way; for physical locations, grocers and drugstores led the pack.14

The lineup of companies that consumers say are getting personalization right includes some of the biggest names in retail: department stores and mass merchandisers such as Macy’s, Walmart, and Target; grocery chains like Kroger; and online retailers like Amazon. But the ways they implement personalization—tailored discounts and recommendations—can readily be adopted by banks and credit unions.

59% 71%Grocery/

Drug Store

81%Online

Retailers

70%Media/

Entertainment

14. Epsilon. The Power of Me. Slide 33.

89 percent of consumers are more likely to do business with a financial institution doing personalization well.

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A Tale of Two Industries: Personalization in Retail Versus the Financial Sector

CHAPTER 3

What Retailers Can Teach Us About Personalization

Amazon is often cited as a pioneer in personalization, starting with its so-called “Endless Aisle,” a carousel of what other people also bought after viewing a product. When logged in, the Amazon homepage is personalized to the customer. After selecting an item to purchase, the website then recommends other products that are frequently bought together.15

Netflix’s recommendation engine, using machine learning and the consumer’s viewing history, has gotten increasingly more sophisticated, now offering the ability to find movies by such nuanced categories as mood or birth year. 16

Grocery chain Kroger’s EVP/CFO Michael Schlotman reported that digital revenues more than doubled in the first quarter of 2017, thanks to Kroger’s use of analytics to power its digital app. The app offers personalized promotions and tailored pricing to its Plus Card members. Meanwhile, the grocery chain’s “My Magazine” marketing vehicle delivers personalized content, like recipes, to consumers based on their shopping behavior and interests.17

In 2018, PayPal introduced “smart payment buttons” for some retail clients. These buttons intelligently choose and present the most relevant payment options for a retailer’s customers; a study found that checkout conversion rates for these companies jumped to 82 percent higher than those not using the buttons.18

How Some Banks Get It Right

While the financial sector, in general, lags behind other industries when it comes to personalization, some financial institutions are moving in the right direction. These banks are using data analytics, coupled with artificial intelligence (AI), to offer customers personalized experiences.

15. Johnson, Tara. “A Closer Look at Amazon’s Endless Aisle The Digital Shelf Revolution.” Retail Performance Marketing Blog - CPC Strategy, Retail Performance Marketing Blog - CPC Strategy, 15 Nov. 2018, www.cpcstrategy.com/blog/2018/11/a-closer-look-at-amazons-endless-aisle-the-digital-shelf-revolution/.

16. Plummer, Libby. “This Is How Netflix’s Top-Secret Recommendation System Works.” WIRED, WIRED UK, 21 Aug. 2017, www.wired.co.uk/article/how-do-netflixs-algorithms-work-machine-learning-helps-to-predict-what-viewers-will-like.

17. Denman, Tim. “Kroger’s Analytic Prowess Powers Its Personalization Efforts.” RISNews, 6 July 2017 risnews.com/krogers-analytic-prowess-powers-its-personalization-efforts

18. PayPal Inc. “Online Payment Type: Conversion Analysis.” April 2018 www.paypalobjects.com/digitalassets/c/website/marketing/global/shared/global/media-resources/documents/comScore_Checkout_Conversion_4-23-8.pdf

Personalization efforts in the retail industry have been proven to be both effective and profitable.

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For example, The Commonwealth Bank of Australia uses a “customer engagement engine,” powered by AI, to drive conversations with customers interacting with the bank, resulting in a 10-fold increase in home lending lead volume and a No. 1 rank in customer satisfaction. Using a similar approach, The Royal Bank of Scotland increased mortgage retention to 20 percent.19

Both of those banks used the model of “next best action,” based on defining segmented consumer journeys for different financial products or services, such as mortgages or estate planning. This methodology helps financial institutions understand when to sell and when to serve—or when to do nothing. The economic payoff is staggering: 30 percent to 40 percent sales lift, doubling or tripling consumer engagement scores, and 10 percent to 30 percent cut in churn rate—significant at a time when more than 10 percent of consumers have switched to virtual banks.20

Next Best Action in Modern MarketingNext Best Action is a marketing approach that uses machine learning to uncover patterns from consumer data, including demographics such as age, gender, location, and income; behaviors such as the sequence of past purchases, inbound communications, and the use of social media; and the sequence of outbound communications already sent to the consumer. 21

For example, the computer might uncover a pattern that consumers under age 30 who received an invitation for a webinar, followed by an SMS reminder the next day, were more likely to attend, while women over 45 were more likely to respond to an e-newsletter.

This approach provides companies the ability to predict in real-time, the “next best action” to take for each consumer to maximize a purchase based on past and current touchpoints.

Here in the U.S., Capital One is one of the financial institutions that is starting to focus on personalizing consumer banking. As part of that mission, the bank has begun opening “Capital One Cafés” in cities across the U.S. in an attempt to connect with consumers—predominantly millennials, of whom “nearly 75 percent say they’d be more excited by a financial offering from Google, Apple, PayPal, or Square over their nationwide bank.” 22 Like coffee shops, the cafés are places where consumers off the street can purchase coffee and use free Wi-Fi, with one crucial difference: financial counselors are on-hand to provide free financial advice for anyone who is interested.

Financial institutions that implemented the Next Best Action model saw a 30 to 40 percent sales lift.

19. Marous, Jim. “Power of Personalization in Banking 2018.” Digital Banking Report, no. 257, Aug. 2018, p22.20. Marous, Jim. “Power of Personalization in Banking 2018.” Digital Banking Report, no. 257, Aug. 2018, p27.21. Priest, Colin. “Delivering Next Best Action with Artificial Intelligence.” DataRobot Blog, 10 Apr. 2018, blog.datarobot.com/delivering-next-best-action-with-artificial-

intelligence.22. Loudenback, Tanza. “Capital One Is Trying to Curry Favor with Millennials with Cafés around the US Offering Free Wi-Fi, Local Coffee and Food, and Complimentary Money

Coaching.” Business Insider, Business Insider, 9 Feb. 2017, www.businessinsider.com/inside-capital-one-cafe-for-millennials-2017-2.

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Improving the Digital Experience Capital One is also actively improving the digital customer experience. After acquiring Adaptive Path, a user experience and design consulting firm, in 2014, the bank built a large in-house team focusing on all aspects of the customer experience across all channels. The bank also created Eno, a chatbot that enables customers to check balances, review transactions, and make deposits via text—and issue virtual account numbers when users shop online to protect against hacking.23

Virtual assistants and AI tools have been leveraged by other banks, as well. More than a million Bank of America customers are currently using Erica, an AI bot, accessed via a mobile app, that helps users with bill paying, shopping, and more.24 Citibank recently introduced 360º Financial View, a mobile app that enables users to look at all of their online financial tools and investments together, even non-Citi ones. The tool is available to non-Citi customers as well as current customers, a critical addition based on their survey results—79 percent of consumers prefer using a single app to manage finances. Extending their app to non-customers allows them to promote products and services to potential clients, and new customers can even open accounts within the app.25

Don’t Forget the In-Person Experience

Even as financial institutions increase personalization via digital offerings, they should not neglect the in-branch experience. And recent research from Celent shows that this is the area where smaller banks and credit unions tend to shine. “A key finding in Celent’s research is that people banking with smaller institutions are substantially more likely to recommend their bank or credit union to a friend or colleague than customers at larger banks,” writes Bill Streeter, editor of the Financial Brand. “Why? When it comes to the in-person experience, smaller financial institutions perform better across every dimension.”26

While your institution might not have the budget to open “banking cafes” across the country like Capital One, there are many other smaller things you can do to add the critical in-person touch. Consider partnering with community centers, healthcare facilities, or senior centers to offer free banking advice several times a month. Encourage foot traffic by adding comfy couches to your bank waiting rooms and providing free Wi-Fi. When it comes to personalization, the sky is the limit. Just ensure that you are using A/B testing and tracking—to monitor what’s working and what isn’t, and to make sure you can replicate your efforts once you find the magic formula.

Only 6 percent of financial institutions rated themselves as advanced in deploying personalization technology in their web and mobile apps.

23. Marous, Jim. “Power of Personalization in Banking 2018.” Digital Banking Report, no. 257, Aug. 2018, p. 29.24. Hudson, Caroline. “Bank of America Reaches Milestone with Virtual Assistant Erica.” Bizjournals.com, The Business Journals, 13 June 2018, www.bizjournals.com/

charlotte/news/2018/06/13/bank-of-america-reaches-milestone-with-virtual.html.25. Marous, Jim. “Citibank Launches PFM Mobile App to Steal Customers.” The Financial Brand, 30 Mar. 2018, thefinancialbrand.com/71793/citibank-new-mobile-digital-

banking-app-aggregation/.26. Streeter, Bill. “Big Banks Blow It In Branches, Smaller Institutions Struggle In Digital Channels.” The Financial Brand, 10 July 2018, thefinancialbrand.com/73435/bank-

credit-union-branch-digital-customer-experience/.

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Room for ImprovementWith the exception of these outliers, however, the banking sector as a whole still has a long way to go towards personalizing the consumer experience. In a 2018 survey of banks and credit unions, of 269 respondents, only six percent rated themselves as advanced in deploying personalization technology in their web or mobile apps. Only 26 percent said they offer consumers real-time alerts for unusual account activity. Eighteen percent said they pitch bank services relevant to that consumer, while only a scant two percent suggest ways that consumers can avoid potential fees and penalties.27

27. Marous, Jim. “Power of Personalization in Banking 2018.” Digital Banking Report, no. 257, Aug. 2018, p. 59.28. Epsilon. The Power of Me. Slides 20, 21.

How Can Financial Institutions Move the Needle with Consumers?

1,000 consumers were asked about what they thought their financial institution could do (either at a branch or via a web or mobile app) to provide personalized experiences that would “move the needle” in their opinion.28

Mentioned for physical locations:

55% 32%

43%

Being reminded of outstanding financial transactions

Email

29%

The website opens to the page they prefer

43%

Being allowed to set up recurring transactions

43%

Company Website

29%

Storing their financial activity history for future reference

32%

Getting recommendations for financial products appropriate

to their financial situation

App on your phone or mobile device

23%

Storing billing information and preferences

Mentioned for web/mobile apps:

Preferred method to receive personalized experiences:

Whether physical or digital location, email was the preferred method for being reached by their bank, on a weekly schedule.

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Data: The Key to PersonalizationCHAPTER 4

Data Is the Difference

In section two, we explained why personalization is critical to winning and retaining consumers, and in section three we explored how retailers are leading the charge when it comes to personalizing the consumer experience. But what has enabled the retail sector to get personalization so right, while the financial industry lags behind? The difference often lies in the data: retailers are collecting it, integrating it, and applying it in ways that most banks and credit unions are not. In this section, we’ll look at why collecting the right data is so important, and how to wield it once you have it.

All Data Is Not Created Equal

The problem is not that banks and credit unions don’t have data; the problem is that it’s the wrong kind of data. Banks and credit unions actually have lots of data—on consumer transactions. But for the kind of personalized experiences that consumers have come to expect, that’s not sufficient. What’s needed, experts say, is the kind of data that sheds light on which journey a specific consumer is on in terms of their financial needs and interests, enabling banks to achieve true data-activated marketing.

“In the digital age, personalization goes far beyond using a customer’s name in communication,” says Jim Marous, financial industry strategist and publisher of the Digital Banking Report.29 “It is the ability to deliver highly customized, real-time recommendations based on the consumer’s profile, behavior, needs, channel preferences and location.” And the ability to deliver these specific types of recommendations depends on the ability to collect personalized data from consumers.

Obstacles to Data-Activated Marketing

To optimize and activate the data-driven marketing that builds consumer loyalty and boosts revenues, banks and credit unions have many organizational and technical hurdles to overcome. Research by the Boston Consulting Group identified the top organizational barriers to personalization.30

“...each time you engage with a consumer, you should be delivering the most relevant messaging or taking the best action for deepening the relationship and increasing value.”

-D. Scott Andrick Sr.

29. Marous, Jim. “Power of Personalization in Banking 2018.” Digital Banking Report, no. 257, Aug. 2018.30. Marous, Jim. “Power of Personalization in Banking 2018.” Digital Banking Report, no. 257, Aug. 2018, p68.

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Most frequently cited obstacles to data-driven marketing includee:• Too few personnel dedicated to personalization (74 percent)

• Lack of a clear roadmap (61 percent)

• Functional silos leading to inadequate cross-functional coordination and project management (61 percent)

• Inability to test and learn rapidly (59 percent)

• Inadequate creative process (57 percent)

• Lack of talent level and knowledge in personalization (54 percent)

• Insufficient budget (52 percent)

• Lack of clear business case and objectives (50 percent)

Meanwhile, technology barriers include:

• Poor or non-existent integration of consumer data across technology infrastructure

Only 7 percent of surveyed banks said they had a “thorough understanding” of consumer journeys across channels and devices.

31. Marous, Jim. “Power of Personalization in Banking 2018.” Digital Banking Report, no. 257, Aug. 2018, p70.32. Marous, Jim. “Power of Personalization in Banking 2018.” Digital Banking Report, no. 257, Aug. 2018, p20.

Together, these barriers make it hard for banks and credit unions to collect and collate consumer data, pick up on consumer signals, and distribute tailored content and offers in real time. In fact, an IBM study found that only seven percent of surveyed banks said that they had a “thorough understanding” of consum-er journeys across channels and devices.31

This is a lost opportunity, says D. Scott Andrick Sr., Director of FS Sales & Marketing at Pegasystems Inc. “In the digital age, every point of engagement with a consumer—from a service call to a marketing email, to using the mobile app—serves as a ‘moment of truth’ for retail banks and credit unions where the customer or member relationship is put to the test over and over again. And, every touch generates a trail of data that is useful in building your consumer relationships and lifetime value over time. Therefore, each time you engage with a consumer, you should be delivering the most relevant messaging or taking the best action for deepening the relationship and increasing value.”32

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Personalization Through Financial Education

Moving beyond inserting a consumer’s name on an email message to a truly personalized consumer experience can seem daunting. But new technology, coupled with a shift in priorities, makes personalization possible—and it doesn’t necessarily require a complete marketing overhaul.

Financial education is one strategy that more banks and credit unions are utilizing to add immediate personalization to the consumer experience. This strategy is compelling for the following four reasons:

1. Financial education easily adds onto your existing marketing program without starting over from scratch, complementing your ongoing campaigns and efforts.

2. As traditional institutions that comply with federal regulations, banks and credit unions are already viewed as trusted entities by consumers. This puts them in the perfect position to provide free financial education—and simultaneously build relationships with prospects and consumers.

3. Financial education is also the ideal vehicle for personalization. Consider that a high school student researching college loans has different needs than a middle-aged worker contemplating retirement. When financial institutions offer a range of learning opportunities around a variety of subjects and themes, consumers can then choose which topics are relevant to them and their own personal financial situation and goals—the ultimate personalization.

4. Banks and credit unions can even use financial education to take personalization a step further by collecting the data provided by consumers who use their financial education products and using this information to send more relevant information and offers. For instance, if a consumer downloads a how-to guide on home-buying, a credit union could then follow up with more information on mortgages and closing costs. If a consumer reads a manual on credit awareness and answers a short quiz, a bank could reward them with a $50 towards a new savings account.

Financial education can be a simple and powerful way for financial institutions to personalize the consumer experience—as long as they don’t forget to both collect data and use it to offer more information to consumers, building brand engagement.

Use financial education to take personalization a step further by leveraging data provided by consumers who use their financial education products.

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Creating an End-to-End Experience

Personalization can seem like a daunting task, but it’s easy to start small. According to consulting firm McKinsey & Company, “A lot of the initial data mining is simply hypothesis driven, and a lot of the low-hanging fruit to drive momentum in the organization is common sense.” 33 Follow along to learn some steps financial institutions can take to start personalizing consumer experiences right away.

1. Start with What You Have While most financial institutions don’t have data on the consumer’s journey, they do have transactional information, product details, and demographics. Start with that data, and don’t strive for perfection the first time around. Think about what kind of experience you want your consumers to have, then form testable hypotheses about what other kinds of data you need to gather and what technology you would need to deploy to create that experience.

2. Think: Relationships Every interaction with a consumer is an opportunity to further the relationship and to subsequently boost the consumer lifetime value. Make sure that each touchpoint delivers the most relevant messaging for that particular consumer. Even a simple “Happy Birthday” message can deepen a relationship.34 Messages applicable to the consumer’s demographic could be displayed in the banking app or on the mobile site whenever the user logs in.

3. Deliver Offers and Experiences Everywhere While consumers are increasingly engaging with more and more online content, in-branch experiences are still vital for personalization. Custom offers shouldn’t be limited to online banking and apps. Financial advisers in local branches should be tailoring their offerings and messages for each consumer.

33. Marous, Jim. “Power of Personalization in Banking 2018.” Digital Banking Report, no. 257, Aug. 2018, p11.34. Andrick, D. Scott. “Personalized Experiences Are The Only Way Banking Brands Can Differentiate.” The Financial Brand, 1 Oct. 2018, thefinancialbrand.com/75689/

banking-marketing-personalization-ai-targeting-trends/.

USAlliance Federal Credit Union’s motto is right on their website homepage: Live Life Fully. But how could a credit union with more than 95,000 members ensure each member had the resources to achieve their financial goals? To help, USAlliance turned to financial education.

The credit union partnered with EVERFI to provide their members with financial education modules on a wide variety of topics. “A lot of credit unions have a fairly specific type of member, but we’re very diverse,” says Tori Burton, Marketing VP for USAlliance. Since the range of topics is so varied, the modules chosen provide the personalization for the credit union to market products. A member who chose a module on home ownership, for example, would get a pop-up at the end for mortgage offers; CD offers might pop up after modules associated with investments.

The result was a major success. 10,000 users completed 5,000 modules over the course of six months, prompting USAlliance to target even more members. “Phase one was about providing education and a degree of unique value,” says Burton. “Phase two will look at each individual to provide them with even more relevant content, videos, and financial resources—we’ll help them reach that next level.”

How USAlliance Federal Credit Union Drives Success with Personalized Financial Education

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Facing fierce competition, consumer choice, and information overload, marketers at financial institutions need to be more strategic in attracting and retaining consumers.

Personalized experiences, powered by quality data, can differentiate your institution in today’s digital age and delight users with relevant and timely information tailored to their needs—but you can’t personalize until you know your audience. That means prioritizing data collection—both transactional and qualitative—and engaging in ongoing testing to fuel messaging and content marketing that will boost your bottom line.

The Future Requires a Human TouchCONCLUSION

Our mission at EVERFI is to drive lasting, large-scale change to the financial capability of learners of all ages. We help banks and credit unions make a transformative impact on the livelihoods of their communities, consumers, and employees through online education, data, and services.

Learn more at everfi.com/FinEd or call 202.871.9292

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Used by over 850 of the world’s largest financial institutions to strengthen their education solutions through an interactive, scalable, and measurable tool that impacts learners at scale.

EVERFI, the leading education technology company, powers a network of over 20 million users with best-in-class digital learning platforms that have impact in increasing the financial

capability of consumers, employees, business partners, and communities

Learn More at everfi.com/FinEd or call 202.871.9292