By modernizing their cloud computing environments and capabilities, banks can enhance their ability to deliver personalized offers, experiences and campaigns.
The COVID-19 pandemic accelerated digital adoption throughout the banking industry – establishing new, irreversible behaviors among businesses and customers.
The last few years gave banks a renewed appreciation for digital transformation and caused many to revisit their cloud-adoption strategies. Forward-looking marketing leaders recognize that the cloud is far more than a storage method, but rather a skeleton key that unlocks the door to a more innovative and agile future. Indeed, success in the cloud starts with the right mindset.
Take personalization. As the previous articles in this series have highlighted, the cloud is the right environment for banks to house, explore and analyze their vast stores of customer data , deploy artificial intelligence (AI) tools for advanced segmentation , and develop true omni-channel capabilities . It’s no overstatement to say that the cloud is where personalization happens.
Why the cloud is so important today
Beyond marketing and customer engagement, the cloud promises to help banks address a confluence of significant threats, including low interest rates and loan losses. Banks must evolve rapidly because fewer people visit physical branches anymore and low interest rates undermine the profitability of deposit and loan-related products. The economic models that have underpinned the industry continue to erode, forcing more banks to consider consolidation or re-platforming.
As digital disruptors and non-traditional competitors seize market share, formerly autonomous, recently consolidated banks must quickly launch new business models and reposition in the market. Those that have fully adopted the cloud to digitize their businesses can do so in a matter of months, connecting with customers in new ways and delivering unique products and services.
In a time of market turbulence, banks that master the cloud will be best positioned to evolve successfully and emerge with stronger brands and customer experiences. The process starts with understanding the true scope of the cloud revolution.
Skeleton key for Industry 4.0
At its most basic, the cloud – a network of on-demand computing resources – is an extremely efficient method for storing information remotely so it doesn’t need to be saved or managed locally. More strategically, it’s a computing paradigm or approach that provides easier access to powerful technologies and data that companies can use to address a range of longstanding business issues and innovate more boldly than ever before.
Take data integration. Most banks struggle to integrate all the useful data they have across different platforms to generate customer insights, identify meaningful performance trends or support data-driven decisioning. That lack of connectivity prevents them from recognizing the same customers as they navigate across different parts of the business (e.g., a call center, mobile app) or engage with different product sets. Well-designed cloud environments not only help banks connect their data and establish omni-channel experiences, but also enhance it with third-party data. Further, they can explore and analyze that data with powerful AI-based tools and machine learning (ML) to uncover opportunities to reach out to customers with personalized messaging and offers.
The following are just six of the many doors cloud can unlock for financial institutions.