The Personalization Difference:

Using Data to Deliver Engaging

Consumer Experiences
 The banking landscape is becoming increasingly
disruptive. New financial products and services are
emerging at an accelerated rate. Banks and credit
unions must focus on personalized experiences to
gain a competitive edge and increase market share.

Marketers can take on this challenge by

understanding customer data to personalize
company products and services—both digitally
and in-branch. By using the right data to
power personalization, financial institutions
can differentiate themselves from competition
and provide relevant experiences throughout a
customer’s financial life stages.
The Personalization Difference:
Using Data to Deliver Engaging
Consumer Experiences

CHAPTER 1 1
The Challenge: Financial Marketing in the
Omnichannel Era

CHAPTER 2 3
The Opportunity: Personalization as a Key
Differentiator for Financial Institutions

CHAPTER 3 6
A Tale of Two Industries: Personalization in
Retail Versus the Financial Sector

CHAPTER 4 10
Data: The Key to Personalization

CONCLUSION 14
The Future Requires a Human Touch

Learn more at everfi.com/FinEd or call 202. 871.9292

CHAPTER 1

The Challenge: Financial Marketing in

the Omnichannel Era

According to new research by BAI and Digital Banking Report

Research, the No. 1 challenge by marketers in financial
institutions is acquiring new customers.1 Second? Personalizing
the consumer’s digital experience. Top 2 challenges
facing financial
These two challenges are at once daunting and all-encompassing; institutions today:
to solve them requires examining the reasons causing the acquiring new
challenges. We’ve identified six obstacles banks and credit unions customers and
face today that make it difficult to acquire new consumers and
creating personalized
to create personalized experiences with prospects and existing
consumers alike.
experiences.

Know Your Consumers

Recent surveys show that the percent of consumers using
mobile devices for banking and payments has increased
dramatically across all age groups, largely replacing in-branch
transactions.2 And while it’s harder to develop a personal
relationship with people you seldom see, research suggests that
mobile banking consumers still want to use a branch bank as a
place to get personalized advice. In fact, according to the Federal
Reserve, “Consumers who use mobile and online banking more
than once a week are over 60 percent more likely to be active
retail-branch users than those who do not.” 3 The takeaway?
Banks and credit unions need to seek creative ways to fill the
human gap made by tech.

Compete with FinTech Disruptors

A 2018 survey of all types of financial institutions of any asset
size found that 94 percent were very or extremely concerned
about fintech start-ups, an increase of more than 40 percent
from a similar survey just two years earlier.4 As fintech
companies innovate with new, digital ways to pay bills, send
money, or fund projects, they grab consumers and market share
from traditional financial institutions.

1
1. From BAI/Digital Banking Report Research, November 2018, cited in Marous, Jim. “Financial Marketers Must Create Intimacy At Scale.” The Financial Brand, 27 Nov. 2018,
thefinancialbrand.com/77026/personalization-intimacy-digital-banking-marketing/.
2. Division of Consumer and Community Affairs, Federal Reserve Board. Consumers and Mobile Financial Services 2015. March 2015, www.federalreserve.gov/econresdata/
consumers-and-mobile-financial-services-report-201503.pdf Merry, Ellen A. “Mobile Banking: A Closer Look at Survey Measures” FEDSNotes 27 March 2018. www.
federalreserve.gov/econres/notes/feds-notes/mobile-banking-a-closer-look-at-survey-measures-20180327.htm
3. “The future of US retail-banking distribution.” McKinsey, August 2014. www.mckinsey.com/industries/financial-services/our-insights/the-future-of-us-retail-banking-
distribution
4. “94% of Banking Firms Can’t Deliver on ‘Personalization Promise’.” TheFinancialBrand, 4 September 2018, www.thefinancialbrand.com/74986/banking-personalization-
targeting-trends
Overcome Consumer Bias Against Legacy Banks
It’s a Catch-22: as banks pushed consumers toward ATMs and
then onto the internet to add convenience and save money,
consumers have come to see banking as a commodity to be
shopped for solely on price. Unfortunately, this means many banks
and credit unions have lost their unique brand flavor and personal
touch, which is not a great formula for building lasting consumer
relationships.5
50 percent
Cut Through Information Overload of banking consumers
Research in the field of behavioral finance has shown that use more than one
offering multiple options for investment products, like 401(k) bank or credit union
s, to employees with limited financial savvy leads to a sense of and more than
“information overload.”6 Consumers may become overwhelmed 10 percent use three.
when faced with a range of complex product offerings such as
annuities or different kinds of mutual funds, leading them to either
disconnect or make a poor decision.

Build Brand Loyalty with Capricious Consumers

Many consumers spread their accounts over multiple financial
institutions. A survey of 2,000 banking consumers found that 50
percent use more than one bank or credit union; more than 10
percent use three. Banks and credit unions need to work harder to
bring consumers back, to build brand loyalty, and to be perceived
as more than a simple commodity.

Create a Seamless Consumer Experience

From ATMs to mobile apps to social media, consumers have many
potential points of contact with your financial institution—but
are they experiencing the same tone, branding, accessibility, and
familiarity at each channel? A unified consumer experience is
both a marketing and a technology challenge, but it is a key step
to personalization. As Paul Schaus, CEO of financial consulting
firm CCG Catalyst, notes, “breaking down data silos to gain a full
view of the consumer allows banks to gain new sales by tracking
consumer activity across channels to uncover needs and deliver
timely, personalized messages.” 7

5. Pine, B. Joseph II. “Beyond Products & Services in Banking.” StrategicHorizons, September 2016. www.strategichorizons.com/wp-content/uploads/2016/09/Banking-
Beyond-Products-and-Services-in-Banking.pdf
2
6. Bloch, Brian J. “Information Overload: How It Hurts Investors.” Investopedia, 6 January 2018. www.investopedia.com/articles/financial-theory/11/negative-impact-of-
information-overload.asp
7. Schaus, Paul. “Are you really doing omnichannel?” BankingExchange, 13 March 2018 www.bankingexchange.com/news-feed/item/7421-are-you-really-doing-
omnichannel
CHAPTER 2

The Opportunity: Personalization as a Key

Differentiator for Financial Institutions

Consumers Expect Personalization

In today’s increasingly impersonal and digital world,
personalization is a key reason why consumers are attracted to
80 percent of
some brands and not others. In a recent study, Accenture found consumers said
that a third of consumers who abandon business relationships do that they are
so because personalization is lacking. Alternatively, 48 percent of more likely to do
repeat consumers also expect specialized treatment for being a business with a
good consumer.8 company that
offers personalized
We know that all consumers are not equally valuable. But
experiences, online
personalization doesn’t just help organizations attract and
retain consumers—it also appears to impact the quality of those
and off.9
consumers. In a recent survey of 1,000 consumers conducted by
Epsilon, 90 percent said personalization was appealing to them,
and 80 percent said that they are more likely to do business with
a company that offers personalized experiences, online and off.9
Consumers who said that they found personalization appealing
were ten times more likely to be a brand’s best consumers,
making more than 15 transactions annually. Those who believed
that companies were doing “very well” on personalization
shopped with them three times more often than with companies
they thought were doing personalization “poorly.” 10

Additionally, according to the Econsultancy Conversion Rate

Optimization Report, 93 percent of companies report having
more success in converting prospects into consumers when
they personalize their marketing. Bottom line? Consumers have
come to expect personalized experiences and will vote with their
feet when companies and organizations come up short. 11

8. Wollan,Robert,etal.“Https://Www.accenture.com/t20180219T081429Z__w__/Us-En/_acnmedia/PDF-71/Accenture-Global-DD-GCPR-Hyper-Relevance-POV-V12.Pdf.”
Accenture Strategy, 2017, www.accenture.com/t20180219T081429Z__w__/us-en/_acnmedia/PDF-71/Accenture-Global-DD-GCPR-Hyper-Relevance-POV-V12.pdf.
3
9. Epsilon. The Power of Me: The Impact of Personalization on Marketing Performance, 4 January 2018 www.slideshare.net/EpsilonMktg/the-power-of-me-the-impact-of-
personalization-on-marketing-performance/10
10. Epsilon. The Power of Me. Slide 38.
11. Bannister, Kristian. “Why Personalization Isn’t Just for Amazon Anymore.” Smart Insights, Smart Insights, 19 Dec. 2017, www.smartinsights.com/ecommerce/web-
personalisation/personalization-isnt-just-amazon-anymore/.
Why Personalization Works
Why does personalization work so well? Marketing professionals and
behavioral psychologists cite many factors including:

• A need to feel in control.

When consumers believe that the messages they receive are tailored
to them and based on their past behaviors and preferences, it provides
a sense of internal control, which in turn increases enjoyment and
enhances a consumer’s feeling of uniqueness.
Personalized and
• A bulwark against information overload. customized content
An Accenture Interactive study found that nearly half of surveyed helps consumers direct
consumers abandoned a website because its content was poorly curated
and offered too many options. In contrast, personalization cuts right to
their attention to the
the chase with product or service recommendations specifically tailored most relevant choices.
to that consumer’s personal needs and preferences. Sometimes, less is
more: personalized and customized content helps consumers direct their
attention to the most relevant choices.

• A need to feel unique.

No one wants to feel like they are just another face in the crowd.
Personalized content that connects with a person’s particular life stage
or financial circumstances makes them feel valued and understood.

Knowing why personalization is effective and recognizing its ROI are

essential steps for financial institutions interested in differentiating
themselves in an increasingly competitive market—but as we’re about
to share, most banks and credit unions are still not leveraging this
powerful tool.12

What Do Consumers Mean by Personalization?

1,000 consumers were asked to think about all the ways that the
companies they did business with provided a personalized experience.13

The top mentions:

Helpful and
31% 22% 20%
Coupons/discounts/ Recommendations
based on preferences personable
rewards programs
or prior purchases customer service

This suggests that people interpret personalization in different ways. For example, 32 percent of those surveyed
defined personalization as a kind of customization: “It means something suited to me exactly so that I’m more
likely to be interested in what they’re selling.”

Another 32 percent described it in terms of service: “It means that the company will know what you want, your
likes and dislikes, and make sure you have what you want.” 16 percent thought of it as “personalized offers,
products and coupons that meet your needs and are items you typically buy.” Smaller percentages cited services
like dedicated shopping assistants or curb service (8 percent) or a business using their shopping or browsing
history to customize ads (7 percent).
4
12. Accenture. Pulse Check 2018: Moving from Communication to Conversation. p. 3 www.accenture.com/t20180801T080703Z__w__/us-en/_acnmedia/PDF-83/
Accenture-Making-Personal.pdf
13. Epsilon. The Power of Me. Slide 14.
Financial Institutions Fail the Personalization Test
Unfortunately, when it comes to personalization, financial
institutions tend to lag behind their counterparts in other
industries. While the Epsilon survey showed that 89 percent of
consumers were “much” or “somewhat” more likely to do business
with a financial institution doing personalization well, only 59
percent said such institutions were doing it “very” or “somewhat”
well—an astonishing 30 percent gap. So, which industries are doing
it well? In the digital space, online retailers are doing personalization
the right way; for physical locations, grocers and drugstores
led the pack.14

59% 81%
Online
Retailers
71%
Grocery/
Drug Store
70%
Media/
Entertainment

The lineup of companies that consumers say are getting

personalization right includes some of the biggest names in
retail: department stores and mass merchandisers such as
Macy’s, Walmart, and Target; grocery chains like Kroger; and
online retailers like Amazon. But the ways they implement
personalization—tailored discounts and recommendations—can
readily be adopted by banks and credit unions.
89 percent
of consumers are more
likely to do business
with a financial
institution doing
personalization well.

14. Epsilon. The Power of Me. Slide 33. 5

CHAPTER 3

A Tale of Two Industries: Personalization in

Retail Versus the Financial Sector

What Retailers Can Teach Us About Personalization

Amazon is often cited as a pioneer in personalization, starting
Personalization efforts
with its so-called “Endless Aisle,” a carousel of what other people
also bought after viewing a product. When logged in, the Amazon
in the retail industry
homepage is personalized to the customer. After selecting an item have been proven to
to purchase, the website then recommends other products that are be both effective and
frequently bought together.15 profitable.
Netflix’s recommendation engine, using machine learning and
the consumer’s viewing history, has gotten increasingly more
sophisticated, now offering the ability to find movies by such
nuanced categories as mood or birth year. 16

Grocery chain Kroger’s EVP/CFO Michael Schlotman reported that

digital revenues more than doubled in the first quarter of 2017,
thanks to Kroger’s use of analytics to power its digital app. The app
offers personalized promotions and tailored pricing to its Plus Card
members. Meanwhile, the grocery chain’s “My Magazine” marketing
vehicle delivers personalized content, like recipes, to consumers
based on their shopping behavior and interests.17

In 2018, PayPal introduced “smart payment buttons” for some retail

clients. These buttons intelligently choose and present the most
relevant payment options for a retailer’s customers; a study found
that checkout conversion rates for these companies jumped to 82
percent higher than those not using the buttons.18

How Some Banks Get It Right

While the financial sector, in general, lags behind other industries
when it comes to personalization, some financial institutions are
moving in the right direction. These banks are using data analytics,
coupled with artificial intelligence (AI), to offer customers
personalized experiences.

15. Johnson, Tara. “A Closer Look at Amazon’s Endless Aisle The Digital Shelf Revolution.” Retail Performance Marketing Blog - CPC Strategy, Retail Performance Marketing
Blog - CPC Strategy, 15 Nov. 2018, www.cpcstrategy.com/blog/2018/11/a-closer-look-at-amazons-endless-aisle-the-digital-shelf-revolution/.
6
16. Plummer, Libby. “This Is How Netflix’s Top-Secret Recommendation System Works.” WIRED, WIRED UK, 21 Aug. 2017, www.wired.co.uk/article/how-do-netflixs-
algorithms-work-machine-learning-helps-to-predict-what-viewers-will-like.
17. Denman, Tim. “Kroger’s Analytic Prowess Powers Its Personalization Efforts.” RISNews, 6 July 2017 risnews.com/krogers-analytic-prowess-powers-its-personalization-
efforts
18. PayPal Inc. “Online Payment Type: Conversion Analysis.” April 2018 www.paypalobjects.com/digitalassets/c/website/marketing/global/shared/global/media-resources/
documents/comScore_Checkout_Conversion_4-23-8.pdf
For example, The Commonwealth Bank of Australia uses a “customer
engagement engine,” powered by AI, to drive conversations with
customers interacting with the bank, resulting in a 10-fold increase in
home lending lead volume and a No. 1 rank in customer satisfaction.
Using a similar approach, The Royal Bank of Scotland increased
mortgage retention to 20 percent.19

Both of those banks used the model of “next best action,” based
on defining segmented consumer journeys for different financial
products or services, such as mortgages or estate planning. This
Financial institutions
methodology helps financial institutions understand when to sell that implemented the
and when to serve—or when to do nothing. The economic payoff Next Best Action
is staggering: 30 percent to 40 percent sales lift, doubling or tripling model saw a 30 to 40
consumer engagement scores, and 10 percent to 30 percent cut percent sales lift.
in churn rate—significant at a time when more than 10 percent of
consumers have switched to virtual banks.20

Here in the U.S., Capital One is one of the financial institutions that
is starting to focus on personalizing consumer banking. As part of
that mission, the bank has begun opening “Capital One Cafés” in
cities across the U.S. in an attempt to connect with consumers—
predominantly millennials, of whom “nearly 75 percent say they’d
be more excited by a financial offering from Google, Apple, PayPal,
or Square over their nationwide bank.” 22 Like coffee shops, the
cafés are places where consumers off the street can purchase
coffee and use free Wi-Fi, with one crucial difference: financial
counselors are on-hand to provide free financial advice for anyone
who is interested.

Next Best Action in Modern Marketing

Next Best Action is a marketing approach that uses machine learning to uncover patterns from consumer data,
including demographics such as age, gender, location, and income; behaviors such as the sequence of past
purchases, inbound communications, and the use of social media; and the sequence of outbound communications
already sent to the consumer. 21

For example, the computer might uncover a pattern that consumers under age 30 who received an invitation for a
webinar, followed by an SMS reminder the next day, were more likely to attend, while women over 45 were more
likely to respond to an e-newsletter.

This approach provides companies the ability to predict in real-time, the “next best action” to take for each
consumer to maximize a purchase based on past and current touchpoints.

19.
20.
Marous, Jim. “Power of Personalization in Banking 2018.” Digital Banking Report, no. 257, Aug. 2018, p22.
Marous, Jim. “Power of Personalization in Banking 2018.” Digital Banking Report, no. 257, Aug. 2018, p27.
7
21. Priest, Colin. “Delivering Next Best Action with Artificial Intelligence.” DataRobot Blog, 10 Apr. 2018, blog.datarobot.com/delivering-next-best-action-with-artificial-
intelligence.
22. Loudenback, Tanza. “Capital One Is Trying to Curry Favor with Millennials with Cafés around the US Offering Free Wi-Fi, Local Coffee and Food, and Complimentary Money
Coaching.” Business Insider, Business Insider, 9 Feb. 2017, www.businessinsider.com/inside-capital-one-cafe-for-millennials-2017-2.
Improving the Digital Experience
Capital One is also actively improving the digital customer
experience. After acquiring Adaptive Path, a user experience and
design consulting firm, in 2014, the bank built a large in-house
team focusing on all aspects of the customer experience across
all channels. The bank also created Eno, a chatbot that enables
customers to check balances, review transactions, and make
deposits via text—and issue virtual account numbers when users
shop online to protect against hacking.23

Virtual assistants and AI tools have been leveraged by other Only 6 percent
banks, as well. More than a million Bank of America customers of financial institutions
are currently using Erica, an AI bot, accessed via a mobile app, rated themselves as
that helps users with bill paying, shopping, and more.24 Citibank advanced in deploying
recently introduced 360º Financial View, a mobile app that personalization
enables users to look at all of their online financial tools and
investments together, even non-Citi ones. The tool is available
technology in their web
to non-Citi customers as well as current customers, a critical and mobile apps.
addition based on their survey results—79 percent of consumers
prefer using a single app to manage finances. Extending their app
to non-customers allows them to promote products and services
to potential clients, and new customers can even open accounts
within the app.25

Don’t Forget the In-Person Experience

Even as financial institutions increase personalization via digital
offerings, they should not neglect the in-branch experience. And
recent research from Celent shows that this is the area where
smaller banks and credit unions tend to shine. “A key finding in
Celent’s research is that people banking with smaller institutions
are substantially more likely to recommend their bank or credit
union to a friend or colleague than customers at larger banks,”
writes Bill Streeter, editor of the Financial Brand. “Why? When it
comes to the in-person experience, smaller financial institutions
perform better across every dimension.”26

While your institution might not have the budget to open “banking
cafes” across the country like Capital One, there are many other
smaller things you can do to add the critical in-person touch.
Consider partnering with community centers, healthcare facilities,
or senior centers to offer free banking advice several times a
month. Encourage foot traffic by adding comfy couches to your
bank waiting rooms and providing free Wi-Fi. When it comes to
personalization, the sky is the limit. Just ensure that you are using
A/B testing and tracking—to monitor what’s working and what
isn’t, and to make sure you can replicate your efforts once you find
the magic formula.

23.
24.
Marous, Jim. “Power of Personalization in Banking 2018.” Digital Banking Report, no. 257, Aug. 2018, p. 29.
Hudson, Caroline. “Bank of America Reaches Milestone with Virtual Assistant Erica.” Bizjournals.com, The Business Journals, 13 June 2018, www.bizjournals.com/
8
charlotte/news/2018/06/13/bank-of-america-reaches-milestone-with-virtual.html.
25. Marous, Jim. “Citibank Launches PFM Mobile App to Steal Customers.” The Financial Brand, 30 Mar. 2018, thefinancialbrand.com/71793/citibank-new-mobile-digital-
banking-app-aggregation/.
26. Streeter, Bill. “Big Banks Blow It In Branches, Smaller Institutions Struggle In Digital Channels.” The Financial Brand, 10 July 2018, thefinancialbrand.com/73435/bank-
credit-union-branch-digital-customer-experience/.
Room for Improvement
With the exception of these outliers, however, the banking
sector as a whole still has a long way to go towards personalizing
the consumer experience. In a 2018 survey of banks and credit
unions, of 269 respondents, only six percent rated themselves as
advanced in deploying personalization technology in their web or
mobile apps. Only 26 percent said they offer consumers real-time
alerts for unusual account activity. Eighteen percent said they
pitch bank services relevant to that consumer, while only a scant
two percent suggest ways that consumers can avoid potential fees
and penalties.27

How Can Financial Institutions Move the Needle

with Consumers?
1,000 consumers were asked about what they thought their financial institution could do (either at a branch or
via a web or mobile app) to provide personalized experiences that would “move the needle” in their opinion.28

Mentioned for physical locations:

43% 43% 32%

Being reminded of outstanding Being allowed to set up Getting recommendations for

financial transactions recurring transactions financial products appropriate
to their financial situation

Mentioned for web/mobile apps:

29% 29% 23%

The website opens to the Storing their financial activity Storing billing information
page they prefer history for future reference and preferences

Preferred method to receive personalized experiences:

55% 43% 32%

Email Company Website App on your phone or
mobile device

Whether physical or digital location, email was the preferred method for being reached by their bank, on a
weekly schedule. 9

27. Marous, Jim. “Power of Personalization in Banking 2018.” Digital Banking Report, no. 257, Aug. 2018, p. 59.
28. Epsilon. The Power of Me. Slides 20, 21.
CHAPTER 4

Data: The Key to Personalization

Data Is the Difference

In section two, we explained why personalization is critical to winning
and retaining consumers, and in section three we explored how “...each time you engage
retailers are leading the charge when it comes to personalizing the with a consumer, you
consumer experience. But what has enabled the retail sector to get should be delivering
personalization so right, while the financial industry lags behind? The the most relevant
difference often lies in the data: retailers are collecting it, integrating messaging or taking
it, and applying it in ways that most banks and credit unions are
the best action
not. In this section, we’ll look at why collecting the right data is so
important, and how to wield it once you have it. for deepening the
relationship and
All Data Is Not Created Equal increasing value.”
The problem is not that banks and credit unions don’t have data;
the problem is that it’s the wrong kind of data. Banks and credit
-D. Scott Andrick Sr.
unions actually have lots of data—on consumer transactions. But
for the kind of personalized experiences that consumers have come
to expect, that’s not sufficient. What’s needed, experts say, is the
kind of data that sheds light on which journey a specific consumer
is on in terms of their financial needs and interests, enabling banks
to achieve true data-activated marketing.

“In the digital age, personalization goes far beyond using a

customer’s name in communication,” says Jim Marous, financial
industry strategist and publisher of the Digital Banking
Report.29 “It is the ability to deliver highly customized, real-time
recommendations based on the consumer’s profile, behavior, needs,
channel preferences and location.” And the ability to deliver these
specific types of recommendations depends on the ability to collect
personalized data from consumers.

Obstacles to Data-Activated Marketing

To optimize and activate the data-driven marketing that builds
consumer loyalty and boosts revenues, banks and credit unions
have many organizational and technical hurdles to overcome.
Research by the Boston Consulting Group identified the top
organizational barriers to personalization.30
10
29. Marous, Jim. “Power of Personalization in Banking 2018.” Digital Banking Report, no. 257, Aug. 2018.
30. Marous, Jim. “Power of Personalization in Banking 2018.” Digital Banking Report, no. 257, Aug. 2018, p68.
 Most frequently cited obstacles to data-driven
marketing includee:
• Too few personnel dedicated to personalization (74 percent)
• Lack of a clear roadmap (61 percent)
• Functional silos leading to inadequate cross-functional
coordination and project management (61 percent)
• Inability to test and learn rapidly (59 percent)
• Inadequate creative process (57 percent)
• Lack of talent level and knowledge in personalization Only 7 percent
(54 percent) of surveyed
• Insufficient budget (52 percent) banks said they
• Lack of clear business case and objectives (50 percent)
had a “thorough
understanding”
Meanwhile, technology barriers include: of consumer
• Poor or non-existent integration of consumer data across
journeys across
technology infrastructure channels and devices.

Together, these barriers make it hard for banks and credit unions
to collect and collate consumer data, pick up on consumer
signals, and distribute tailored content and offers in real time. In
fact, an IBM study found that only seven percent of surveyed
banks said that they had a “thorough understanding” of consum-
er journeys across channels and devices.31

This is a lost opportunity, says D. Scott Andrick Sr., Director of

FS Sales & Marketing at Pegasystems Inc. “In the digital age,
every point of engagement with a consumer—from a service
call to a marketing email, to using the mobile app—serves as a
‘moment of truth’ for retail banks and credit unions where the
customer or member relationship is put to the test over and
over again. And, every touch generates a trail of data that is
useful in building your consumer relationships and lifetime value
over time. Therefore, each time you engage with a consumer,
you should be delivering the most relevant messaging or taking
the best action for deepening the relationship and increasing
value.”32

11
31. Marous, Jim. “Power of Personalization in Banking 2018.” Digital Banking Report, no. 257, Aug. 2018, p70.
32. Marous, Jim. “Power of Personalization in Banking 2018.” Digital Banking Report, no. 257, Aug. 2018, p20.
Personalization Through Financial Education
Moving beyond inserting a consumer’s name on an email message
to a truly personalized consumer experience can seem daunting.
But new technology, coupled with a shift in priorities, makes
personalization possible—and it doesn’t necessarily require a
complete marketing overhaul.
Financial education is one strategy that more banks and credit
unions are utilizing to add immediate personalization to the
consumer experience. This strategy is compelling for the following
four reasons:

1. Financial education easily adds onto your existing marketing

program without starting over from scratch, complementing
your ongoing campaigns and efforts.

2. As traditional institutions that comply with federal regulations,

banks and credit unions are already viewed as trusted entities
by consumers. This puts them in the perfect position to
provide free financial education—and simultaneously build
relationships with prospects and consumers.

3. Financial education is also the ideal vehicle for personalization.

Consider that a high school student researching college loans
has different needs than a middle-aged worker contemplating Use financial
retirement. When financial institutions offer a range of learning education to take
opportunities around a variety of subjects and themes, personalization a step
consumers can then choose which topics are relevant to them
and their own personal financial situation and goals—the
further by leveraging
ultimate personalization. data provided by
consumers who
4. Banks and credit unions can even use financial education use their financial
to take personalization a step further by collecting the data education products.
provided by consumers who use their financial education
products and using this information to send more relevant
information and offers. For instance, if a consumer downloads
a how-to guide on home-buying, a credit union could then
follow up with more information on mortgages and closing
costs. If a consumer reads a manual on credit awareness and
answers a short quiz, a bank could reward them with a $50
towards a new savings account.

Financial education can be a simple and powerful way for financial

institutions to personalize the consumer experience—as long as
they don’t forget to both collect data and use it to offer more
information to consumers, building brand engagement.

12
 How USAlliance Federal Credit Union Drives
Success with Personalized Financial Education

USAlliance Federal Credit Union’s motto is right on their website

homepage: Live Life Fully. But how could a credit union with more than
95,000 members ensure each member had the resources to achieve their financial goals? To help, USAlliance
turned to financial education.

The credit union partnered with EVERFI to provide their members with financial education modules on a wide
variety of topics. “A lot of credit unions have a fairly specific type of member, but we’re very diverse,” says Tori
Burton, Marketing VP for USAlliance. Since the range of topics is so varied, the modules chosen provide the
personalization for the credit union to market products. A member who chose a module on home ownership, for
example, would get a pop-up at the end for mortgage offers; CD offers might pop up after modules associated
with investments.

The result was a major success. 10,000 users completed 5,000 modules over the course of six months,
prompting USAlliance to target even more members. “Phase one was about providing education and a degree
of unique value,” says Burton. “Phase two will look at each individual to provide them with even more relevant
content, videos, and financial resources—we’ll help them reach that next level.”

Creating an End-to-End Experience

Personalization can seem like a daunting task, but it’s easy to start small. According to consulting firm McKinsey
& Company, “A lot of the initial data mining is simply hypothesis driven, and a lot of the low-hanging fruit
to drive momentum in the organization is common sense.” 33 Follow along to learn some steps financial
institutions can take to start personalizing consumer experiences right away.

1. Start with What You Have

While most financial institutions don’t have data on the consumer’s journey, they do have transactional
information, product details, and demographics. Start with that data, and don’t strive for perfection the first
time around. Think about what kind of experience you want your consumers to have, then form testable
hypotheses about what other kinds of data you need to gather and what technology you would need to
deploy to create that experience.

2. Think: Relationships
Every interaction with a consumer is an opportunity to further the relationship and to subsequently boost
the consumer lifetime value. Make sure that each touchpoint delivers the most relevant messaging for
that particular consumer. Even a simple “Happy Birthday” message can deepen a relationship.34 Messages
applicable to the consumer’s demographic could be displayed in the banking app or on the mobile site
whenever the user logs in.

3. Deliver Offers and Experiences Everywhere

While consumers are increasingly engaging with more and more online content, in-branch experiences are
still vital for personalization. Custom offers shouldn’t be limited to online banking and apps. Financial advisers
in local branches should be tailoring their offerings and messages for each consumer.

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33. Marous, Jim. “Power of Personalization in Banking 2018.” Digital Banking Report, no. 257, Aug. 2018, p11.
34. Andrick, D. Scott. “Personalized Experiences Are The Only Way Banking Brands Can Differentiate.” The Financial Brand, 1 Oct. 2018, thefinancialbrand.com/75689/
banking-marketing-personalization-ai-targeting-trends/.
CONCLUSION

The Future Requires a Human Touch

Facing fierce competition, consumer choice, and information

overload, marketers at financial institutions need to be more
strategic in attracting and retaining consumers.

Personalized experiences, powered by quality data, can

differentiate your institution in today’s digital age and delight
users with relevant and timely information tailored to their needs—
but you can’t personalize until you know your audience. That means
prioritizing data collection—both transactional and qualitative—and
engaging in ongoing testing to fuel messaging and content marketing
that will boost your bottom line.

Our mission at EVERFI is to drive lasting, large-

scale change to the financial capability of learners
of all ages. We help banks and credit unions make
a transformative impact on the livelihoods of their
communities, consumers, and employees through
online education, data, and services.

Learn more at everfi.com/FinEd or call 202.871.9292

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 Used by over 850 of the world’s largest financial institutions to strengthen their education
solutions through an interactive, scalable, and measurable tool that impacts learners at scale.
EVERFI, the leading education technology company, powers a network of over 20 million
users with best-in-class digital learning platforms that have impact in increasing the financial
capability of consumers, employees, business partners, and communities

Learn More at everfi.com/FinEd or call 202.871.9292

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