Banks are leaning on technology to provide personalized services to retain consumer deposits as the Federal Reserve shifts to lowering interest rates. 

Consumers will tap their savings and use that money for investments, Udi Ziv, chief executive of fintech Personetics, told Bank Automation News.

Banks must look to custom products and personalization through data and analytics to retain those deposits, Ziv said. By offering personalized customer experiences and engagement, banks can ensure that a customer sticks with them rather than moving money to another financial institution. 

 AI-driven tools, for example, can help banks analyze consumer data at scale for personalized, timely offerings, Ziv said.  

“Think of the cross-sell opportunities, because if a bank can identify what you are going through” it can offer better products, he said. 

Personalization in action 

Here is how three banks collect data and use analytics to provide personalized experiences and drive engagement: 

Capital One: The $477 billion bank tracks how customers use its mobile app to drive engagement, Executive Vice President Ameesh Paleja said at Money20/20 last month. 

For example, if the bank notices a customer checking their savings account balance, it can provide additional information like credit scores and suggestions for setting savings goals, Paleja said. 

A lot of data collection and analysis is required to “create these experiences that talk to your customers at the right time, on the right device, on the right channels,” Paleja said, adding that machine learning and AI models can help execute such campaigns on a large scale. 

First International Bank and Trust: The $5.4 billion bank pays close attention to consumer behavior to predict needs, Chief Payments Officer Trent Sorbe told BAN. 

The bank uses geo tracking to see if a consumer is visiting houses for sale to offer mortgage information and it tracks spending patterns like buying a minivan to offer family-specific financial products, Sorbe said. 

“The beauty of the richness of the data is that there [are] spending patterns and lifestyle choices that we can see,” Sorbe said, adding that the bank uses AI to find patterns within a customer’s transactions. 

Truist Financial: The $511 billion bank looks at business customer balances and liquidity patterns to figure out where it can provide additional services, Chris Ward, head of enterprise payments, told BAN. 

If the bank sees businesses making payments by checks, it can offer faster payment options like wire transfers or real-time payments through The Clearing House, Ward said. 

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