Predictive analytics are on the rise. Used by businesses and organizations from various industries, predictive analytics aren’t just about improved planning or increasing sales. Instead, they should be seen as an essential step in understanding your customers. Being crucial for growth, predictive analytics are becoming a necessity in the banking industry.
1. Determining customer offers
Predictive analytics have definitely started turning leading banks into fortune tellers. Through data on customer history and finances, banks have been able to make effective offers for their customers. Consider the example of Chase Bank. By successfully analyzing data, Chase made a ‘lower your mortgage’ offer to a valued customer. An excellent result for both sides.
2. Increasing customer satisfaction
As banking becomes more convenient, meeting customer demand becomes a vital priority. A top 5 bank tracked customer demand through relevant data including specific interactions, attitudes, behaviors, and descriptions. The bank used this valuable information to make improvements to their services, leading to more customer satisfaction and rising profits.
Along with determining effective customer offers and improving customer experience, predictive analytics forecasts crucial trends banking industry. For example, it helps bankers explain which customers are creditworthy.It also helps executives forecast risks and commercial property values.
As agility becomes a necessity in the banking industry, predictive analytics are immensely essential for success. By allowing better banking decisions and facilitating strong customer relationships, such insight is pivotal as the future of interest rates become unpredictable.