Personalisation in financial services: Leveraging AI to keep up with the scale and pace of change

Steve Croke, Chief Technology Officer, Financial Services at GlobalLogic, explains how strategic partnerships help the financial services industry transform essential elements of personalisation into a comprehensive paradigm that adds value across the customer experience

The financial services industry needs to catch up with the ever-growing expectations of tech-savvy customers for personalised services. A wealth of research reveals how implementing personalisation strategies on a large scale can significantly improve customer lifetime value, leading to double-digit revenue growth, better retention rates, and more fulfilling long-term connections with customers. Yet, the sector isn’t managing to implement and capitalise on innovative personalisation initiatives.

The pace and scale of change

The fintech industry is continuing to develop at a remarkable pace. The increasing quantities of data mean organisations can better understand their customers. In so doing, they can act on insights and boost customer experience.

Personalisation at scale is already a factor in many aspects of our lives. For example, we’re used to Amazon recommending items and Netflix suggesting new movies based on previous choices. Still, the financial services industry is behind the times, not capitalising on the benefits of personalisation.

AI-powered personalisation opportunities

Tailored customer product recommendations are one opportunity AI-powered personalisation offers. Algorithms analyse behaviour patterns and transaction history to understand customers’ unique preferences and suggest products that match individual risk appetites and financial objectives.

Behavioural analytics for targeted marketing is another area where AI and personalisation excel. AI mines insights from spending habits and economic goals, which feed targeted marketing campaigns. So, customers receive offers aligned with their preferences and lifestyle choices.

AI-powered chatbots and virtual assistants offer immediate, round-the-clock, personalised customer support. Machine learning ensures continuous improvement and enables streamlined operations. Virtual assistants can, for example, guide customers through application processes, policy purchases, and insurance claims. By analysing and acting on information, they eliminate the need for intermediaries.

Hurdles

AI has the capacity to transform financial services by tailoring experiences, improving customer relationships, and streamlining operations, but there are critical factors to consider. For one, to power richer customer experiences, organisations must have a resilient and robust data estate.

Secondly, legacy technology constrains the ability to personalise and innovate, so modernisation is vital. The journey to the cloud is another key component. With costs and benefits for both single and multi-cloud solutions, businesses must weigh up and accept trade-offs.

The pace and scale of change also require organisations to maintain a key focus on changing legislation, industry regulations, and compliance requirements. All this means organisations can find it challenging to position themselves for successful AI integration and deployment.

Overcoming challenges

Having a trusted strategic partner isn’t a nice-to-have; it’s essential. Agile and DevOps methods—the necessary ingredients for AI—rely on specialised knowledge and expert engineering, particularly in hybrid legacy environments where data points aren’t easily measured.

On the whole, digital processes are frictionless, so it’s not about finding new ways. It’s about developing mechanisms to ensure they’re better suited. Driving engineering excellence through continued improvements in automation, security, controls, and observability is where trusted technology partners really add value.

Partnerships also enable rapid experimentation, model training, and deployment by facilitating access to advanced AI services, tools, platforms, and frameworks. Moreover, strategic alliances inject agility, allowing faster iterations in response to changing customer needs, shifting regulatory landscapes, and broader market movement.

Looking to the future

AI has the potential to transform the essential elements of personalisation into a comprehensive and holistic paradigm that adds value across the customer experience. However, if the financial services sector is to overcome key challenges—like data management, regulatory compliance, and implementation issues—it must capitalise on the expertise of strategic partners. Only then will it be able to deliver tailored experiences that account for customers’ rapidly changing preferences and needs at scale and pace.

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