FIs turn to shopping to find new avenues to engage customers – Tearsheet

Financial institutions can move from banks to brands by leveraging personalization and customer data. Today, bank accounts are little more than a safe place to hold money, and there is a case to be made that they should be more. Fintechs can help here through gamifying experiences and integrating into shopping journeys, shifting the relationship from transactions to partnerships.

Move from bank to brand with personalization. Digital engagement is where it’s at. Energy flows where attention goes, and attention today is at such a premium. Personalization helps here – to make customers feel like their institution not only knows them but understands them. Financial institutions can do a much better job personalizing experiences, beyond the “Hello, Zack” platitudes. Do you know I like to binge on Pearl Jam swag? You should, you see my spending. It’s in this interaction that real consumer brands are made.

Ben Maxim, Michigan State University FCU’s Chief Innovation Officer, believes in the significance of enhancing digital engagement and bringing forward personalization in the credit union industry. He says, “How do we engage with our members and have them interact with us more as a brand, versus, you know, their bank or credit union?”

Shift towards partnership model: In our interview with Ben, he describes a shift from attempting to build everything in-house to adopting a partnership model with fintech companies. It took time – when he started the almost $10 billion institution, the team built a lot of the early platform and features themselves. He explains, “We started investing in some fintechs… if we can find a partner that’s strong and kind of mission-aligned with us, we’ll start there every time now.” Being able to partner well with fintechs is a differential skill and will become more important in the future.