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Industry News Banks need a single customer view 2010-08-02 A new report by technology analyst Ovum says that banks need to improve their targeting and customer segmentation analysis processes in order to effectively attract and retain new customers. In order to grow confidently following the financial crisis - and lack of consumer trust that has followed - the report says financial institutions need to work to create a more customer-centric environment. That improvement can be achieved through a number of different ways, including recommending appropriate products at the right time, synchronizing customer contact through different channels, and better practices in trying to find the "right" types of customers. "Banks must attract new customers who will stay active not for a few months, but for years," said Jaroslaw Knapik, senior analyst at Ovum and report co-author. "Additionally, providers must reassess their approach to retaining existing customers; they must not simply retain but further monetize existing customers through gaining a better understanding how to more effectively cross-sell and up-sell their products and services." The continuing use of multiple channels, such as online and mobile banking, also presents FIs with the opportunity to learn even more about the customers. But in order to do that, all customer data and information needs to be stored in one location to ensure its integrity. "Banks should be confident that customer data is complete, accurate and up-to-date," said Knapik. "Getting there requires banks to treat customer data as a strategic asset that is managed as a shared resource." The report's authors also say that the process should go both ways and give customers the opportunity to ask questions, give feedback or request additional product information through any of the FIs' channels. As banks work to become more customer-centric, the report says that customer intelligence solutions will begin to replace customer relationship management technologies because they can bring a "deeper insight" into a bank's core group of customers. That transition will lead to a rapid growth for the CI industry, according to a Datamonitor study last month. Ovum says that retail bank spending on customer information systems and multi-channel integration will grow 4.6 percent annually through 2014 to $6.1 billion. That rate would make customer intelligence the third-fastest growing business area for banks, trailing only online banking and management information systems. 
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