Jamie Renehan, Head of Behavioural Insights at the Bank of Ireland (BOI), talks about how customer analytics is helping consumers stay financially stable during these hard times at MoneyLIVE Summit 2024.

These days, analytics improves user experiences by assisting banks clients in better understanding their financial situation.

BoI: Digital customer understanding

The bank manager at your branch would be the one to know your circumstances if we were living in a time before the internet. Therefore, understanding it in a digital environment is what banks are attempting to achieve these days, adds Renehan, in an efficient manner.

Naturally, it has been simpler to interact with clients directly in the digital sphere as banks have expanded their data footprints.

However, if banks persist in entering the digital realm, what measures can they take to maintain a personal touch?

Renehan says, "There's an awful lot we can do in terms of financial well-being."

We are able to comprehend a customer's position in respect to other individuals in a comparable situation. As an illustration, consider the experience of those Irish first-time homebuyers.

"Data can help us understand our customers' needs for that specific property investment or purchase, as well as when they are going through that journey."

Taking use of this knowledge also helps clients better comprehend their own finances, especially in light of the current cost-of-living dilemma.

Renehan observes, "Interest rates and the cost of living have been high for a while."

The effect that rising living expenses are having on consumers is now becoming increasingly apparent to many. We see that depending on specific circumstances and the season, discretionary spending—such as spending on delivery and dining out—varies significantly.

People are obviously trying to save money, and analytics can really assist banks provide customers insight into their spending.

locating solutions in the area between data and people
In fact, Renehan believes that while sound data may offer valuable insights into consumer purchasing behavior, it is equally important to measure how people interact with one another and how they spend.

"We have the cold information and data that allows us to make consumer calculations on the behavior side of things," he claims. "However, it's critical to comprehend human behavior and how communities function. And that has the potential to be really potent if we can combine data with local, community awareness.

Renehan offers the example of an older customer, who is unlikely to alter their buying preferences or stop going to their neighborhood grocery.

Some consumers, especially those from younger generations, may be a little erratic, but that's okay—they have different habits. In order to provide your clients with the finest solutions, it is important for banks to understand these tendencies.