‘Data analysis, social media to play major role in digital banking’

A.J. Vinayak
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Ajai Kumar, CMD, Corporation Bank.
Ajai Kumar, CMD, Corporation Bank.

Customer data analysis and social media will play a major role in delivering banking services and maintaining customer loyalty in the coming days, according to a banker.

Delivering the T.A. Pai Endowment Lecture on the theme ‘Digital Banking’ at Mangalore University here on Thursday, Ajai Kumar, Chairman and Managing Director of Corporation Bank, said the customers’ data available with banks could be utilised to facilitate higher and newer levels of customer experience.

Giving an example of how data analysis can be used for better customer service, he said if a customer ‘X’ is found to withdraw Rs 5,000 more often on a Saturday evening, the ATM machine should be enabled for that. The first option that comes to the screen of customer ‘X’ should be of fast cash withdrawal of Rs 5,000, he said.

Analysing the customers’ data allows the bank to offer products and services of the right fit at the right time. If the products offered match these criteria, the likelihood of the customer taking the products is higher. The deeper data analysis would improve customer experience in the days to come and would lead to higher levels of customer loyalty, he said.

On social media use, he said the banks need to look beyond the networking capabilities of social media and use its wide base to connect with their existing and prospective customers. This may be utilised to make elaborate analysis on customer behaviour which enables banks to offer tailor-made products and customised service to their customers, he said, adding that banks could overlay their basic data with other information of interest to customers.

He suggested that banks start to offer banking services on social media sites such as Facebook by creating a virtual branch on the site. This would allow the banks’ customers to discuss account related matters through their Facebook accounts, which should be further transferred to the departments or the branches concerned, he added.

(This article was published on November 22, 2012)
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