For most of us, banking and streaming services both play a big role in our lives. Many of us can say that we use them both daily. From pulling out your debit card for your monthly grocery haul to cozying down on a Friday night to binge-watch that new show everyone is talking about; we can all relate in some way. Still, it’s not very common to compare the two. One is used to manage our money and the other is used for entertainment. What could possibly be alike about them?
That’s where data science comes in.
How Big Tech Uses Data
Have you ever felt like your phone was listening in on your conversations? I mean, you were just complaining to your cat about the holes in all your socks and suddenly, your Instagram feed is filled with ads about socks! Crazy…
Well, whether or not your phone is recording you or not is up for debate but there is one thing for certain. Most of the time, those uncanny ‘coincidences’ probably have to do with data that you have willingly given up to your daily websites.
Amazon
As you browse their millions of listings, Amazon gets to know you and what you’re shopping for. Then, they use this data gathered from your clicks to recommend more products you’d be interested in purchasing. With that, they get more sales.
As you scroll through your seemingly endless feed, Facebook gets to know you and what type of content you’re more likely to interact with. Then, they use this data gathered from your likes and dwelling to show you more of the type of content you enjoy. With that, they keep you engaged on the platform.
Netflix
As you binge-watch your favourite shows, Netflix gets to know you and what genres or movies and shows fill up your screen most days. Then, they use this data gathered from your tune-ins to show you more of the media that you’re likely to turn on. With that, they have your continued subscription in the bag.
What About Banks?
How do banks come into all of this? It’s not as if your banks are watching every move you make with the money you’ve put into their platform. It’s not as if your banks are going to recommend new products to you…
But they are.
And that’s the problem.
Your banks know your credit cards, loans, and accounts. They have the data that knows exactly what you spend on, where you spend it, and how much you spend. They have the data that knows every movement of your money whether it’s coming in or going out.
However, they don’t actually know us all that well!
Every now and then, they might offer you one of their new products – a shiny new credit card, a new investment plan…nothing you’d actually want.
So, what are the banks doing wrong compared to Amazon, Facebook, and Netflix?
Well, even with all of this data they collect, they are not using it to actually improve their customers – our – financial well-being.
When we phone their dreaded call centres, we have to identify ourselves in multiple ways, repeat ourselves countless times, answer all sorts of questions…and all while passing us from one consultant to the next.
It’s endless and exhausting, and there are solutions to these issues that they have all the power and data to act out on, but they simply…don’t!
We’re living in a fast-paced world now. We have developed certain expectations when it comes to the services we use. We have grown to expect the customer experience that we have come to know from Amazon, Facebook, Netflix, and all of the rest.
And, after all this time, banks still haven’t caught up.
They are still measuring customer satisfaction against their competitors. I would argue that consumers are increasingly measuring the satisfaction level of their banking experience against big tech.
When you’re looking for a new bank, do you compare interest rates and fees? Probably yes. Do you also look at the user interface and customer service? Probably not. But maybe you should.
A lot of things can be said about banks, but one thing is for sure – they are not known for being particularly cutting-edge or customer-oriented. In fact, many people see banks as the epitome of bureaucracy.
At the end of the day, you need a bank and you’ll need a bank that knows and understands your needs.
And they have all the data to know and understand your needs.
Yet, they are not leveraging it to its optimal value.
Why does this happen?
Are they stuck in the past? Afraid to make changes that might scare their customers? Or maybe they’ve just gotten too comfortable, knowing that they’ve made the process to leave them just as complex as joining them.
Who has the time and energy for that?
Share with me your banking experience and how you believe AI and data science can fundamentally change the customer and product experience.
