How Customer Data Platforms are Reshaping the Banking Industry

In 2022, the global Customer Data Platform (CDP) market size hit $4.8 billion. However, it is predicted to reach $19.7 billion by 2027. That is an impressive 32.4% CAGR (compound annual growth rate) rise.

With the gradual prosperity of the CDP market and the increasing demand for more personalisation, bank and credit institutions are exploring the various aspects of customer data platforms and how they contribute to financial growth, better banking experience and enhanced customer retention. In this article, we look closely at Customer Data Platforms (CDP), their prospects and how they can accelerate the growth of the banking industry.

Customer Data Platform - Prospects and Efficiency

Customer Data Platforms accumulate customer information from various trusted sources to create a comprehensive and unique profile of each customer. Its core areas of expertise include data management, data regulation compliance, in-depth analytics, regulation of marketing campaigns and successful third-party systems integration. Banks and other financial institutions are storehouses of customer-related data. However, what remains pending is processing and analysing the data effectively and generating valuable insights
from it.

This is where CDPs come into the picture.

Some CRM and marketing automation platform proponents believe that the need for another solution for banks and other fiscal structures is baseless and unnecessary. However, with the application of appropriate CDPs, firms can improve customer segmentation and create more detailed and complete data profiles. This enables organisations to understand their audience, create more relevant messaging and craft more appropriate marketing campaigns.

Role of Customer Data Platforms in the Banking Sector

Create personalised products and services
To accelerate their revenue streams, financial institutions can now create innovative products by getting into business collaborations and developing a strong network with non-bank organisations. Such partnerships benefit from customer data and insights and offer services tailor-made for each user profile.
Enhance efficiency
With artificial intelligence and marketing automation, banks gain real-time user insights based on which they can perform customer profiling, understand their transaction patterns and analyse their behaviour. From such in-depth analysis, banks can predict customers’ preferred products or services and launch marketing strategies promoting appropriate products and services that align with customer preferences.
Structure marketing efforts
Nowadays, banking institutions are also fusing data science and analytics with the insights produced by the CDPs to channelise their marketing efforts for better revenues. Some CDPs even come with built-in models making it easier to work with large chunks of untreated customer data.

With the Springwood growth strategy services, banks can create data-driven marketing campaigns which are more customer-focused.
Predict customer behaviour and preferences
An efficient Customer Data Platform can also predict changing behavioural patterns based on real-time interactions. By applying predictive and prescriptive analysis, a CDP can foresee customer actions. Instances include spotting customers who might not be able to repay loans, determining how to handle the issue of being a defaulter, etc.
Understand customers
CDPs acquire, consolidate and integrate transactional data and share valuable insights from behavioural and demographic data. It provides a unified, 360-degree view of customer profiles which bank marketers use to understand customers’ needs and behaviours and develop relevant marketing campaigns for the targeted audience.
Refine customisation
In today’s world, personalisation lies at the heart of providing impeccable customer service. CDPs help to create data-driven personalisation for customers so that banks can tailor their offerings and increase engagement, thereby achieving improved customer retention rates.

Final Thoughts

With proper integration of CDP into banking systems, banks can acquire more data and insights from each stage of the customer journey, which they can use to create impressive customer portfolios. Taking inspiration from the wide pool of customer data, organisations can create conversion-focused user engagement by applying full-proof marketing strategies. If you are looking for a robust team to handle your customer data and explore possible growth campaigns, contact Springwood today!

Collaborating with clients spread across the globe, Springwood comes with solid experience in promoting engineering growth through scientifically-backed strategies.

Connect with us today to avail Springwood growth strategy services and get ready to unleash the fullest potential of your business.

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Keywords - customer data platform, customer engagement, customer retention, growth strategy, marketing automation, banking industry

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