Finance sector must use big data to 'regain customer trust'

Lenders have used data ‘as a weapon' in the past, says industry panel

Finance sector firms must open up their large data sets to customers in order to regain lost trust, according to a panel of industry experts.

Speaking at a panel session at Salesforce's vendor conference in London on Thursday, Jonathon Wood, head of systems at Bank of Cyprus UK, said that the finance sector needs to readdress the way it utilises information gathered on clients.

"Thus far I get the impression that the banking industry has kind of used data against its customers," he said. "In other words, they have used it as a weapon to persuade or coerce them - possibly to buy a product or more services."

He said that the sector needs to open up its vast amounts of information back to customers to regain trust and drive more sustainable long term business gains.

"The next step for the financial services industry, given that we have an image problem at the moment of our own making, is to use that data with our customers," he said.

"That might mean in the short term that they use less services. But in the longer term the idea is to build trust and loyalty amongst you customer base - two things which are in short supply in the financial services industry at the moment."

He added: "It means more business coming our way, based on trust and loyalty and customers who are prepared to work with you, and to share their data, rather than mistrusting what their information will be used for. That is where we see the future of data."

Similar suggestions were made in the insurance industry, with Ian Cohen, CIO at JLT, saying that providers need to realise the potential to engender customer loyalty, while also opening up the possibility of new areas of revenue.

"At the moment we are looking at where we can take information that absolutely belongs to our clients, and see if can we publish that data back to them with a value add. We are just the custodians of that data," he said.

"If you can do that then you are going to have a much more engaged workforce and much better relationships with customers."

According to Jules Elliott, chief customer officer, DLG at Direct Line Group, one example of how the exchange of data can reward customers is through the development of telematics applications in the insurance industry, which will allow detailed monitoring of drivers through sensors deployed in cars, but also enable reduced rates.

"Customers are happy to share data and telematics, and in future via home-based sensors and so on, but they want to see a value exchange for that. So why are they paying to ensure their car when it is parked in their garage? This is the where it is going to go with big data."

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

Algorithms that can make sense of unstructured data is the future. It's great to see experts in the field getting together in Melbourne t...

Sumit Takim

In pictures: Harnessing AI for customer engagement - CMO roundtable Melbourne

Read more

Are you sure they wont start a platform that the cheese is white, pretty sure that is racist

Hite

New brand name for Coon Cheese revealed

Read more

Real digital transformation requires reshaping the way the business create value for customers. Achieving this requires that organization...

ravi H

10 lessons Telstra has learnt through its T22 transformation

Read more

thanks

Lillian Juliet

How Winedirect has lifted customer recency, frequency and value with a digital overhaul

Read more

Having an effective Point of Sale system implemented in your retail store can streamline the transactions and data management activities....

Sheetal Kamble

​Jurlique’s move to mobile POS set to enhance customer experience

Read more

Blog Posts

Brand storytelling lessons from Singapore’s iconic Fullerton hotel

In early 2020, I had the pleasure of staying at the newly opened Fullerton Hotel in Sydney. It was on this trip I first became aware of the Fullerton’s commitment to brand storytelling.

Gabrielle Dolan

Business storytelling leader

You’re doing it wrong: Emotion doesn’t mean emotional

If you’ve been around advertising long enough, you’ve probably seen (or written) a slide which says: “They won’t remember what you say, they’ll remember how you made them feel.” But it’s wrong. Our understanding of how emotion is used in advertising has been ill informed and poorly applied.

Zac Martin

Senior planner, Ogilvy Melbourne

Why does brand execution often kill creativity?

The launch of a new brand, or indeed a rebrand, is a transformation to be greeted with fanfare. So why is it that once the brand has launched, the brand execution phase can also be the moment at which you kill its creativity?

Rich Curtis

CEO, FutureBrand A/NZ

Sign in