Personalisation is the key to engaged and satisfied customers

Mobile phones at the centre of the strategy

Services that are exclusively available on mobile phones have become increasingly popular in Norway. Much of this is driven by a desire for simple, user-friendly, and accessible solutions – desires that smartphones have enabled to be fulfilled. Snapchat was quick to set the gold standard for companies to place mobile phones at the centre of their strategy, and since then, many have followed suit. In Norway, Vipps became an early success story. They quickly gathered over four million users and built one of the country's most popular brands, available only through the app.

Throughout the autumn, we at Cicero Consulting, Itera's specialist environment in the banking and finance sector, have analyzed, tested, and assessed the functionality of the most used mobile banks in Norway. The goal has been to provide valuable insights and concrete recommendations to banks that contribute to greater accuracy in developing future solutions. We have discovered that what we see banks both succeed with and struggle with is often transferable to other industries.

With ever-increasing demands for digital accessibility and seamless user experiences, mobile banking has become a key service channel and competitive advantage for banks.

Yet online and mobile banking remains an underutilized platform for building relationships, providing customers with sound advice, and distributing banks' products and services. Relevant proactivity has been—and will continue to be—demanded by customers—as long as it feels 'fun' and helps them make 'smart choices.'"

A fine balancing act between the cool and the creepy

For a long time, the banking and finance industry has spoken about customer trust as their greatest asset. This is a resource that must be managed wisely. However, we dare to assert that today there is too much caution when it comes to data usage to achieve better personalization and emotional connection in digital channels.

The fact that Norwegians trust their bank and insurance companies should not be a limitation that restricts how we, as users, experience innovative banks that want to understand customers better. The key word for success is relevance.

The wave of AI has not impacted financial customers

A nationwide customer survey conducted by Norstat for Cicero Consulting shows that Norwegians have varying preferences for how artificial intelligence (AI) can be used in mobile banking, with clear differences between age groups regarding desired features. At the same time, there is increasing interest in services that can enhance security, increase automation, and provide financial guidance.

The survey indicates that nearly five out of ten Norwegians aged 18 to 29 want AI to provide advice on their finances. This group often faces new financial challenges such as student loans, savings, and establishing themselves in the job or housing market. AI-driven guidance can, therefore, prove to be extremely valuable. Banks can succeed in sales through tailored financial advice and provide guidance that is difficult to replicate in other channels.

With rising expectations for accessibility and relevance, financial institutions must become more proactive in their data usage to offer customized solutions and advice. AI technology can play a central role in this effort, especially among younger users seeking financial guidance. To succeed, banks must navigate the balance between being 'cool' and avoiding being perceived as 'creepy.' In this way, they build trust and loyalty in an increasingly digital world. Customers demand it and will soon expect it. If financial institutions do not deliver, other more innovative players will undoubtedly emerge willing to take the chance.