What's this all about?
Having a Single Customer View can create massive opportunities for banks. So how can you develop one? What are the true benefits for customers? And why are more banks not adopting the technology to enable it? In the following article, Joe O’Connor shines a light on the importance of having a Single Customer View for any bank operating in the digital age.
Read on if you:
- Want to enhance your bank’s customer experience offering
- Are considering migrating to a software-defined banking platform
- Want a full view of the customer, not the just the product
- Want to enrich the data you collate from your customers
Many of us have been there. You’re on a call with a customer agent. Satisfied that your initial query has been answered, you ask about another product or service, only to be told you need to speak to a separate department.
In an age when most interactions with customer support demand little effort, this is the kind of customer experience that leaves you pulling your hair out. And, unfortunately, it‘s an experience synonymous with traditional banks.
The main reason? These institutions generally haven’t achieved a Single Customer View (SCV) across their entire enterprise. Their system cares not whether you have a mortgage loan, a debit card and credit card with the same bank. Instead, their patchwork of siloed systems – that have been sticky-taped together over several decades – takes a product-centric view of the world.
The result? Customer data is scattered across different systems making it almost impossible to understand the entire customer lifecycle across various channels and products. It means support staff have to log in and out of multiple applications in order to piece together a clear picture of a customer’s relationship with the bank.
It’s a legacy environment where the product is king, not the customer. And what customer wants to be treated as a series of disconnected accounts rather than an individual?
As Eoin Fleming, Chief Information & Security Officer at LEVERIS, puts it: “You bring all these products together in one place and you end up with an accounting view of things. This way of thinking leads to a really bad customer experience.”
So what is Single Customer View?
Single Customer View, sometimes referred to as Customer 360-degree View, is what you get when you combine different information on a customer taken from different silos, centralise it, and present it as a precise, comprehensive view of each customer.
Joining up your data in this way makes the information gathered much more potent and useful for your bank. A Single Customer View enables you to build a personalised picture of the customer and their journey, helping you provide them with an enhanced customer experience.
Where banks have fallen short
When it comes to banking and Single Customer View, it is safe to say that traditional banks have fallen short. That’s largely in part to the legacy infrastructure, databases and diverse IT platforms they have built up over years; technology which is costly and difficult to replace. A failure to modernise these systems impedes data integration and the building of an SCV.
Think about a retail bank for example. It might have a customer who opened an account on its deposit platform three decades ago, at a time when electronic identification and address verification didn’t exist. That same customer now also has a credit card account and, as a result, has an additional identity on the bank’s system. In essence, the bank’s system thinks this is two different customers.
Banks are addressing this where they can. However, instead of using a software-defined system to bring their data together in one place, some have adopted various CRM systems or a capability known as Master Data Management (MDM).
While MDM attempts to bring all its customer data together in one place and make sense of the chaos, it fails to maintain a Single Customer View. That’s because the MDM capability is just one part of the solution – it must be supported by effective data frameworks if a bank wants it to deliver the same benefits as SCV.
How can SCV enhance your CX?
So what are these banks with outdated technology or using an MDM system missing out on?
Well, for a start – having a much deeper understanding of their customer. That is, understanding how customers think and feel about their interactions with your bank.
Integrating this information with your operational data allows you to identify pain points, discover new product opportunities and proactively close experience gaps. It also enables you to make things more personal, empower your customers to self-serve and enhance your customer support.
Of course, building a Single Customer View is not all about improving your customer experience. There are additional operational benefits your bank can gain, something we outline in our How LEVERIS Does Single Customer View brochure.
Why aren’t all banks jumping on the Single Customer View bandwagon?
With all the benefits to gain from developing a Single Customer View, what’s stopping banks from getting the full picture of their customers?
The truth is that many are making their best efforts to do so. But it’s costly, there’s risk involved and it can be a painful process.
Other obstacles involved vary from legal compliance and internal politics to incompatible systems and skills. Check out our article ‘Migration to the core – what banks need to know’ for more on challenges that come with tech infrastructure migrations.
While some banks scramble to acquire fintech companies in the hope that they hold the answers to legacy issues, and others maintain a short-term vision by continuing to sew more patches to their legacy system, neither path leads to a certain solution.
There’s a better way
One of the biggest myths about financial services is that banks don’t possess deep insights into their customers. In fact, when compared with many other sectors, they have it in spades. The real issue at play is the fact that these insights are scattered across multiple systems and not properly shared across the organisation.
At LEVERIS, we imagined a better way to integrate this data.
We built our technology from scratch entirely based around the customer. We developed a platform with a Single Customer View that’s quick to market, has open APIs, and delivers a real return on investment.
It connects the dots across a wide variety of data types, categories and systems, and is helping banks and lenders obtain a Single Customer View that is scalable as the business evolves.
All of this technology is end-to-end. LEVERIS owns, masters and versions each customer’s data – from their very first interaction with the bank, to their very last.
Now imagine the potency of that.