BoI Insights: Using Customer Analytics to Enhance Financial Well-Being

In the rapidly evolving digital banking landscape, understanding and supporting customers’ financial well-being has become a focal point for institutions seeking to provide personalised services. At the MoneyLIVE Summit 2024, Jamie Renehan, Head of Behavioural Insights at the Bank of Ireland (BoI), delved into how customer analytics can play a pivotal role in this endeavour, writes Louis Thompsett in FinTech Magazine.

Renehan highlighted the transformative impact of data analytics on customer engagement, noting that in the past, the local bank manager would be the sole point of contact for personalized financial advice. However, with the proliferation of digital channels, banks now have the opportunity to replicate this level of understanding in the digital space.

Despite the advancements in digital engagement, Renehan emphasized the importance of maintaining a human touch. He stressed that banks can leverage customer analytics to not only understand individual financial needs but also to provide insights based on broader trends and comparisons with similar customers.

For instance, Renehan mentioned how data analytics can help identify the financial journey of first-time homebuyers in Ireland, enabling banks to offer tailored advice and support. This level of personalized assistance is particularly crucial in times of economic uncertainty, such as the current cost-of-living crisis.

Renehan pointed out that as living costs continue to rise, consumers are increasingly looking to cut back on discretionary spending. By leveraging customer analytics, banks can provide valuable insights into consumer expenditure patterns, helping them make informed financial decisions.

Moreover, Renehan emphasized the importance of understanding human behavior alongside data analytics. He highlighted the example of elderly shoppers who are unlikely to change their shopping habits, emphasizing the need for banks to tailor their services based on these unique customer behaviors.

Renehan underscored the power of combining data analytics with an understanding of human behavior to deliver personalized and impactful solutions to customers. By leveraging customer analytics, banks can not only enhance financial well-being but also strengthen customer relationships in an increasingly digital world.