Personalised retail banking boost customer loyalty, says IBM

IBM has reported the launch of a banking study conducted by IDC and commissioned by IBM to understand the evolving banking landscape in India. The study helps in analyzing the changes in investment behaviour of domestic retail customers.
 
The study titled “Understanding the Indian Retail Banking Customer” is based on the findings from over 5,000 customers spanning across 10 banks.
 
According to the study, 30% of banking customers transact with more than one bank with 2.4% of churn expected among primary bank customers within one year. Private sector banks fare slightly better in customer penetration due to a larger portfolio of account offerings and their ability to leverage process capabilities to unlock higher revenue opportunities.
 
The study shows that 87% of customers have only one account with their primary bank and only 58% of their investments lie with them. This provides potential business opportunities for other banks to take advantage of the remaining 42% of customer investments with the help of analytics backed personalization. This clearly indicates the growing need of banks in understanding the nuances of investment behaviour and preferences of their customers.
 
“Banks are increasingly realising the need to give their customers a more holistic, seamless experience throughout the value chain. The need of the hour is to understand individual consumer’s transactions and nuances of their unique investment behaviour. Integrated and consolidated solutions by IT partners become imperative as technology will drive the business priorities of banks in the future,” said Venkatramani Subramanian, VP & Leader for Banking, Financial Services and Insurance (BFSI), IBM ISA.
 
As a technology player, IBM is uniquely positioned to address gaps with its full range of capabilities that redefine the banking experience for consumers.