In a recent episode of the Banking on Digital Growth podcast, Alpharank's own Carlo Cardelli, COO, shared his valuable insights on how data-driven strategies can significantly enhance financial institutions' loan and deposit performance. Here's a summary of the key points from the discussion:
Carlo emphasized the importance of combining big data, which shows what actions people are taking, with thick data, which explains why they are taking those actions. He stated,
"Big data provides insight into what people are doing on your website, while thick data tells the story behind why people do what they do. You need both perspectives to shine a light on where your website is losing loans and deposits".
One of the major changes Carlo highlighted is the shift from a low-interest to a high-interest rate environment. This has increased the cost of funds for financial institutions, leading to more competition for a shrinking share of the market.
"We have more people fighting for a shrinking share of the pie, and all that fighting is happening in the online branch, not in the physical branch".
Carlo shared how understanding the paradox of choice can transform user experience and boost growth. He explained,
"The majority of people enter a financial buying journey feeling some level of confusion. Transforming this confusion into clarity, and then clarity into courage, can significantly improve conversion rates. One financial brand we worked with transformed their process to get people into the app and deposit money within minutes, rather than days".
The conversation underscores the necessity for financial institutions to leverage both big and thick data to navigate the current competitive landscape and enhance their marketing and sales systems effectively.