By Poorna Nayak | Aug 19, 2021
The banking industry has traditionally been a high-touch industry relying heavily on face-to-face interaction between their relationship managers and clients. However, in this new normal, banks and wealth management firms have accelerated digital transformation. Many of them have been successful in migrating a lot of their clients to digital channels. But, it goes without saying that a lot of them still value the personal touch. More so, when discussing and deciding on complex financial products. As per an E&Y report, 80% of them say that personal attention is a critical aspect of their wealth management relationship. Banks and WM firms are worried about losing the personal touch while going digital.
Personalizing digital touchpoints provides a human approach to digital interactions. And what better way to do it than with personalized videos. In fact, a Cisco report states that by 2022, 82% of all IP traffic will be video. Personalized, interactive videos bring high-tech and high-touch together to create bespoke client journeys.
Data-driven personalized videos enable banks and WM firms to boost client lifetime value. Here are some of the ways that personalized, interactive videos can be used at different points during the client lifecycle.
It has never been harder to acquire new clients than in recent times. There has been a lot of focus on getting data and leveraging it to segment clients to drive relevancy and context. All to get a larger share of the wallet from prospective clients. Compared to traditional banks and wealth firms, neobanks and fintech companies have been doing a better job of attracting prospects especially the Millenials and Gen Y. All this is because of their focus on UX and digital solutions. This only goes to show that UX will be a key differentiator going forward. However, this can take banks only so far. Only when the user experience or UX is combined with the much more important aspect of human experience can we truly retain the clients that we attract in the first place.
Communication can't be a one-way street where prospective clients are bombarded with marketing messages. Personalized videos humanize digital interactions, and create unique and individual experiences for each and every prospect. A personalized video that explains why someone should be your client can go a long way in building a new relationship. Understanding complex financial products can be challenging. A personalized video can make the onboarding process easy. It shows your prospects that you value them and the relationship.
It is not enough to acquire and onboard new banking and wealth management clients. Client engagement and the experience across various digital channels determine whether the clients stay loyal or not. Regular client engagement can turn them into brand ambassadors. A data-driven proactive approach to client communication helps foster trust and prevents client churn. As per a Gartner survey, 81% of companies compete mostly on the basis of CX, making CX a key differentiator for financial institutions in 2021 and beyond.
With personalized videos, banks can engage with all their clients one-on-one and at scale. They help them forge meaningful connections and create wow experiences. Take the use case of a portfolio video statement that gives a quick summary in a visually compelling format. Apart from saving busy HNI clients time, it also helps in getting the client to get in touch with the RM through in-video CTA buttons. Product explainer videos can be personalized too. Finance can be complex and boring. By sending a personalized video explaining the financial product purchased in an easy and engaging way builds trust.
Sales revenue can be maximized by combining digital and human channels to create a seamless omnichannel experience. In sales, a one size fits all approach seldom works. Bombarding all clients with each and every marketing message regarding new products is useless. Not only does it waste precious RM time, but it also leads to clients starting to ignore all messages sent to them.
By personalizing the message based on client needs and client profiles, we get them to listen first. Upselling to engaged clients is made easy with personalized videos. By adding interactive buttons within these videos, banks can collect client interest on new products say a structured product or a life insurance scheme. By tracking online client behaviors, relationship managers can then approach the interested clients at the right time and quickly make the correct offer. As per McKinsey, one bank saw an increase of 30 percent in sales when there was a timely human response compared to a purely digital and impersonal journey.