Personalized Banking: Financial Institutions Leverage Technology to Tailor Communications

Financial institutions such as Wachovia, JPMorgan Chase, and Wells Fargo are using personalized marketing messages on customer statements and documents to foster engagement and retention. The technology, provided by companies like Exstream, enables banks to customize their correspondence to address specific customer needs and interests. This tailored approach is particularly effective in communicating with high-net-worth customers, who require more personalized service. By leveraging technology to simplify complex communication processes, banks can enhance customer relationships and save on production expenses.

Key Takeaways:

• Wachovia and other financial institutions are deploying software to send personalized messages to customers on statements and documents, increasing the relevance of marketing communications.
• Exstream's Dialogue tool allows banks to use statement and document space for ads tailored to specific customers, promoting seminars or other events relevant to their interests.
• High-net-worth customers benefit from personalized communication, enabling banks to provide specialized services and increase customer retention.
• Legacy systems and disparate communication tools pose significant implementation challenges for banks adopting personalized communication strategies.
• Cost savings from faster printing and better production can justify the expenses of implementing personalized communication solutions.

Statistics:

• Wachovia reports saving $1.5 million annually in production expenses using Dialogue to create high-net-worth and retail check-image statements.
• The Baby Boomer generation's retirement and wealth transfer are driving banks' focus on retaining clients through effective communication.
• As many as six software providers directly compete with Exstream in the personalized printing and print-on-demand market.
• Over 80% of financial institutions expect to reduce their print and mail costs in the next 12-18 months by leveraging technology.

Sources:

• "Personalized Messages on Statements, Documents Key to Customer Retention" by Bank Technology News and SourceMedia, Inc.
• Research by Matt Schott, Senior Analyst, Tower Group
• Brent Burns, Group VP of Financial Services, Exstream, cited in Bank Technology News and SourceMedia, Inc.