The Privacy vs. Personalization Paradox demonstrates the struggle to control what personal information brands access in contrast with the desire for highly personalized experiences across every digital touchpoint.And these concerns are very real as data breaches can result in financial losses and compromised security for the individuals affected.
However, 45% of consumers share that they are willing to share their personal data because they believe the benefit is worth the risk if it results in a more tailored experience. The good news is, financial institutions have an even better leg up than other industries as 70% of consumers say they trust banks to protect their personal information.
But earning (and then maintaining) this trust is key to leveraging the Privacy vs. Personalization Paradox into a win-win solution for both the FI and the consumer. The bottomline is that unique engagement requires data, and banks and credit unions have access to vast amounts of accountholder data that they can – and should – utilize to guarantee personalized recognition across their communications.
So, while data privacy concerns present challenges for the banking industry, it also comes with opportunities. If the Privacy vs. Personalization Paradox can be handled effectively, FIs have the opportunity to present offers tailored to individual customers making them feel seen and understood. To ensure that this occurs, your selected technology platforms have to adhere to the highest level of security and data privacy protocols. Once you have ensure that this is the case, FIs have a significant opportunity to enhance customer acquisition, retention, and boost cross-selling when the products and services highlighted are presented to the right customer at the right financial time.
Integrating secure solutions that honor the sensitive nature of financial data and the accountholder’s desire for privacy can be a key factor in transforming the Privacy vs. Personalization Paradox from a challenge to a success. Intuitively putting the vast amounts of data FIs have amassed over time to work for the consumer allows banks and credit unions to interact with their users across digital channels with an individualized, humanized approach that has the benefit of being welcomed. This unique engagement puts valuable digital real estate to excellent use while being a win-win solution for accountholders and their FIs.
DeepTarget, for instance, partners with banks and credit unions of all sizes to create meaningfully targeted campaigns that anticipate the needs of individuals and deliver the unique engagement through a powerful and highly secure solution called DXP. It is a single platform that easily integrates across all digital channels making the financial institution's communications smarter, easier, and more personalized than ever before. This type of customer and member-first approach transforms raw data into meaningful digital experiences that securely uses and automates the understanding of accountholder’s needs and behaviors at any point in time. This creates a value for accountholders while delivering the results and ROI that help the FI grow and thrive.
