“Consumers now expect the same level of personalization from their banks as they do from Netflix and Amazon. With most banks still struggling to meet these expectations, those that succeed will gain a decisive edge in a market where customer experience is the ultimate differentiator,” said Dattu Kompella, managing director in Asia Pacific for FICO, “
ONLY 11 PERCENT of banks in the Asia-Pacific region believe they have personalized services meeting the needs of their customers, according to an industry poll conducted by global analytics software leader FICO.
This, despite nearly nine in ten banks in the Asia-Pacific region using predictive analytics to anticipate customer needs to some degree.
“Consumers now expect the same level of personalization from their banks as they do from Netflix and Amazon,” said Dattu Kompella, managing director in Asia Pacific for FICO, “With most banks still struggling to meet these expectations, those that succeed will gain a decisive edge in a market where customer experience is the ultimate differentiator.”
The poll highlights key barriers to achieving “segment of one” customer experiences. Almost three-quarters (72 percent) of respondents acknowledged their banks’ communication channels remain siloed or only partially integrated, preventing seamless customer engagement.
Meanwhile, automation adoption remains uneven. Half of the executives said their organizations had automated no more than half of their customer-facing decisions, including credit approvals, fraud alerts, and personalized offers, hindering personalization efforts.
UNDERUTILIZED PREDICTIVE ANALYTICS
The findings also revealed that banks’ use of real-time data and advanced analytics is still in its early stages. While 43 percent of executives said they leverage real-time data significantly or fully for customer insights in areas such as fraud detection and service, most remain at minimal or moderate adoption.
Similarly, just 37 percent reported extensively or fully predictive use of analytics, underscoring that while adoption is broad, maturity remains limited.
Banks can only achieve hyper-personalization by unifying data and decisioning across the customer lifecycle.
“Every interaction, whether it’s a declined offer, a payment pattern, or a service request, contains valuable insight,” Kompella said.
“By consolidating activities, behaviors, and preferences into a single decisioning platform, banks can act on insights in real-time, driving deeper engagement and loyalty. FICO Platform uses applied intelligence to harness these signals, enabling banks to anticipate customer needs and deliver the right action at the right moment,” he added.
The poll was conducted in November 2024 during FICO’s Platform Experience event in Singapore, capturing insights from more than 30 senior executives and C-suite leaders from leading banks across the Asia-Pacific region.
